Thread regarding AT&T layoffs

Since the pension plan is a separate entity from the corporation, it is unlikely changes will occur that impact any current participants in the plan. The exec's have just as much to lose as anyone else, since they have a large amount of their money there.

To Post ID: @1fup+18rtbilF

Rates near zero mean money (loans) are cheap. This leads to:

Businesses have cheap money available. Makes it easy to borrow and grow.
Banks pay nothing on interest - can't leave your money there
Bonds pay low interest rates - can't leave your money there
Money will continue to pour into the stock market. Cheap unlimited money + no place to keep money = stocks will rise
End result of all that cheap money will eventually be inflation
Inflation makes a fixed annuity worth less

Bottom line - Take your pension as a lump sum

The Federal Reserve just today said they would keep interest rates near 0% through at least 2023. What they do to make that happen is print money to loan out, destroying the supply/demand in the debt markets in order to keep that interest rate near 0%. At some point, it will blow up.

The Minimum Present Value Segment Rates set by the IRS are the 3 interest rates that only impact Lump Sum payments.
The lower these 3 rates are...the higher the Lump sum.
The November rates, which have just been released set the rate used for the next years Lump Sums...rates fluctuate in every month, but the November numbers are the ones used in the Lump calculation.
And yes....the rates just released are some of the lowest ever...maximizing next years Lump Sum.
The beauty of this is...if retiring in 2021 you can defer taking your lump and watch rates month over month in 2021 to gauge if rates are rising or lowering. If they continue to decline...your Lump gets bigger....if rates start to go up, you can pull the plug at anytime.

Interest rates are not the only determining factor for individual segment rates Corporate bond yields also play a major role

To Post ID: @xkm+18rtbilF Only the lump sum is affected by interest rates. The lump sum is the calculated amount they have to give you in a single payment to be the actuarial equivalent of the annuity payment

To those wondering if rates could go down from here: The IRS has been publishing monthly rates since 2008. Nov-2020 (the month that sets the pension lump sum for 2021) was the third lowest interest (highest pension) month in those 13 years...The other 2 months that were lower were July and August 2020. Nothing from a previous year comes close. Rates are already on the upswing (Sep Oct before a November pull back), so taking a pension in 2021 will almost assuredly be the best year for the interest rate lump sum calculation.

Good luck in choosing. I'm happy to have exited after 35+ years in 2020 / taking my pension as a lump sum in January (for a huge boost over what it would have been in December)

Interest rate can only go up from here since it is at historic low.

Is only the lump sum affected or if you chose to take the monthly annuity, will that be reduced as well?

Interest rates are at a hisoric low. T is F'ing with benefits. 2021 might be the year to cut loose. Watch for severance packages, craft and management to be trimmed next year. 25 yr mgr here, 57. Six co-workers already bailed in 2020. I work with CWA and IBEW and we all have families. Good luck.. Crunch the numbers and meanwhile, keep fishing and have a brew. Chicago

Stunk is the gift that keeps coming... enjoy!.. AT&T nation