https://www.businesswire.com/news/home/20200821005477/en/Frontier-Communications-Restructuring-Plan-Confirmed-Court
9 replies (most recent on top)
Think about it.... If they pay the lump sum - that is less money they have to pay in the long run to the pension management firm. Also there's a lump sum penalty anyway, so the employee is not going to get as much in the lump sum compared to what they would get if they chose the annuity.
The pension is transferred to the PBGC a government entity, FTR will no longer manage the pension. To receive an annuity you have to be 65 years old when retire. You would have to live at least to 85 years old to receive the full amount of the lump sum depending on how you file single or married, may be longer. But this is a moot point lump sum is no longer available
“ "Possible" why would they pay lump sum over $650,000 to an employee that they can pay $3500.00 a month depending on their filing single/married. The math doesn't add up in their favor.”
You need to add in the ongoing cost of the bureaucracy that maintains that monthly payment. Lump sum is actually a cheaper option for corporations. It’s a one and done cost for each employee. They no longer need to spend money on you.
Tyrone,
If FLA doesn't have a contract what makes you think you'll get any kind of a buyout and 3 months pay. Use your sick time or lose it.
FAKE NEWS
I heard from a union steward that our buyout would be $60k plus 3 months of pay if they close the Tampa center.
Because retirement money is help by a third-party company that can't be touched by Frontier. At least in theory. If they did try to snag those funds, Frontier would have to answere to the government. LoL
Show me where they say the lump sum will be a possibility. I didn’t read in there any mention of a lump sum. Please direct me to the paragraph where it says that.
"Possible" why would they pay lump sum over $650,000 to an employee that they can pay $3500.00 a month depending on their filing single/married. The math doesn't add up in their favor.