Is this correct?

http://www.post-gazette.com/pg/06299/732847-28.stm

If so, does it affect every lump-sum payout?

Thanks

Under the new law, companies starting in 2008 will be able to assume a higher investment return, using a corporate-bond interest rate instead of the lower Treasury-bond rate previously used. This change produces a smaller lump sum payment, because the higher rate represents the return an employee would have to earn to generate the same retirement income as if he were receiving the pension as a monthly paycheck.

This change will be phased in gradually over five years, and people who retire in the next year will see little impact on their payout. "It's going to mean lump sums are smaller for everybody," says David Certner, director of legislative policy for AARP, the seniors advocacy group.

But another change in the pension law has already begun hitting employees, especially highly paid professionals, who have recently retired or plan to retire soon. This change stems from a calculation companies must make that places a cap on the maximum amount a retiree can receive when it is converted to a lump sum. Congress legislates the maximum size of pension payouts because contributing to the plans offers employers certain tax advantages.

For 2006, the biggest annual pension a person age 62 to 65 is allowed to receive from a taxpayer-subsidized plan is $175,000. This cap, which is lower for younger pensioners, increases each year to account for inflation.