June’s interest rates impacting those of you collecting your pension on October 1st, declined as expected and was mostly in line with our forecast from last month. The impact these lower rates will have on your pension value can vary significantly from person to person. It is important to take a close look at all scenarios because it can drastically vary for each individual.

Due to the widely different impact the “Whipsaw” provision creates for your BP RAP account, there is no one size fits all answer to how you may be impacted. Deciding which date to choose depends largely on your age; younger employees generally see a larger impact vs older employees. Our current recommendation is for you to run an estimate in your BP RAP for September, October, and November (see attached interest rate chart for our estimates of November’s interest rates). This will help you see which month yields you the largest lump sum. In addition to these estimates, there are many factors you should take into consideration when deciding what month to take your pension lump sum such as the current economic recovery taking place, the expected additional financial stimulus in the coming months, as well as the upcoming presidential election. These factors could create investment opportunities in equity markets that may outpace the increased pension value, but again, please check to see what the actual impact on your pension is.

If you choose to adjust your pension to a different date:

This is an easy process and usually requires no additional paperwork, you have until the end of August to make a change. We are happy to assist you with calculating your pension value and giving our insight on which date is best for your individual situation.  We can also help you modify your benefit commencement date if you have already submitted paperwork.

For current clients, during your pre-scheduled appointments we will be covering the different scenarios and having an in-depth conversation about the options available to you. If you have immediate questions in the meantime, please don’t hesitate to call. If you are not yet a client and would like to speak with one of our experienced financial advisors regarding which option is most suitable for you, please feel free to call us at 877-739-6007 to schedule a complimentary consultation.

At Capstone Wealth Advisors, we have specialized for over 16 years in knowing how to navigate not only your BP retirement plans but also how to apply the decisions available to you within the larger context of you asset allocation and overall market conditions. We are committed to providing you with the best advice possible.

Tyler E Ryan


Economic forecasts set forth may not develop as predicted and there can be no guarantee that strategies promoted will be successful.

Stock investing involves risk, including loss of principal. International & Emerging Markets investing involves special risks such as currency fluctuation and political instability and may not be suitable for all investors. These risks are often heightened for investments in Emerging Markets.

Bonds are subject to market and interest rate risk if sold prior to maturity. Bond values will decline as interest rates rise and bonds are subject to availability and change in price.

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