Ford Motor Pension Plan

Contributory defined benefit plan for eligible salaried employees. Active participants contribute 1.5% of monthly base salary; the employer contributes actuarially determined amounts. The retirement benefit is based on final average pay and credited service, incorporating both a contributory component (tied to FAP and service) and a non-contributory component providing flat-rate benefits for certain service periods. The companion UAW Retirement Plan (141,948 participants) provides hourly union workers a flat monthly dollar amount per year of credited service, negotiated under collective bargaining.

This is general educational information about how the plan's formula works, not a calculation of your individual benefit. Your actual benefit depends on your service, pay history, and the plan terms in effect during your employment.

Who is still earning a Ford defined benefit pension, and what formula applies?

Salaried employees hired before January 1, 2004 continue to accrue final-average-pay benefits under the GRP (contributing 1.5% of monthly base salary). Those hired on or after January 1, 2004 are in the Ford Retirement Plan, a DC plan with company contributions of 3.5% to 5.5% of pay based on age. UAW hourly workers hired before November 19, 2007 continue to accrue flat-dollar pension benefits under the UAW Retirement Plan; those hired after that date receive 401(k) contributions instead.

Can I take my Ford GRP pension as a lump sum?

Yes, for eligible salaried GRP participants. As of July 1, 2012, Ford allows eligible participants to elect a lump-sum payment at retirement instead of a monthly annuity. The election must be made within 180 days of the retirement date and is irrevocable once paid. The lump sum is calculated using IRS segment rates, so higher prevailing interest rates reduce the present value, and timing the election relative to rate movements can materially affect the amount received.

Has Ford transferred U.S. pension obligations to an insurance company?

No confirmed group-annuity pension risk transfer has occurred for Ford's U.S. plans (GRP or UAW Retirement Plan) as of mid-2026. Ford has completed PRTs for non-U.S. plans: Ford of Canada completed a C$923M buyout in February 2024, and Legal & General completed a GBP 4.6B buy-in for Ford's U.K. pension schemes in 2024. The 2012-2013 U.S. lump-sum windows were voluntary participant elections, not insurer transfers.

Is my Ford Motor pension protected by the PBGC?

Most single-employer defined benefit pensions are insured by the Pension Benefit Guaranty Corporation (PBGC), a federal agency. If a covered plan terminates without enough money to pay promised benefits, the PBGC pays benefits up to a legal maximum that varies by age. Benefits that have been transferred to an insurance company through a pension risk transfer are no longer PBGC insured and are instead backed by state guaranty associations.

Should I take my Ford Motor pension as a lump sum or an annuity?

There is no single right answer. The decision depends on your health and life expectancy, your other retirement assets, whether you need to provide for a survivor, and the interest rate environment that sets the lump sum value. Our lump sum versus annuity guide walks through the trade-offs in detail.