Pension vs Lump Sum

A higher Discount Rate means each future monthly pension payment is worth less in today's dollars, so Pension PV falls as the rate rises while the Lump Sum figure (already a present-day dollar amount) doesn't move at all. Choosing a discount rate close to what you could realistically earn investing the lump sum yourself is the key judgment call in this whole comparison -- a rate that's too optimistic will make the pension look worse than it really is.

No -- Pension PV is calculated purely from Monthly Pension, Benefit Years, and Discount Rate; the Lump Sum figure never enters that calculation. Lump Sum only affects the PV Difference (Pension PV minus Lump Sum) and which option comes out ahead in the comparison -- it's the number Pension PV is being measured against, not an input to it.

No -- this calculator values the pension over the fixed Benefit Years figure you enter, capped at 60 years, not an actuarial life-expectancy projection. If you expect to live meaningfully longer than the years you enter, this understates the pension's true value; if you enter more years than you're likely to receive payments, it overstates it. Adjust Benefit Years to reflect your own realistic expectation.

Yes, directionally -- a higher Monthly Pension payment raises Pension PV (and, in turn, the PV Difference) regardless of the other inputs, since it's a straightforward linear scale-up of every payment being discounted. It doesn't guarantee the pension beats the lump sum overall, since that also depends on the lump-sum offer size, discount rate, and benefit years -- but a larger monthly payment always pushes the comparison in the pension's favor, all else equal.