Thread regarding AT&T layoffs

Looking for information on timing of retirement EOY and requesting lump sum

I am planning to retire by EOY to retain my retirement benefits and take lump Doewould like to wait for the MPV segment rates to come out in the Nov/Dec timeframe to decide whether to take the lump sum using the current rates or the new rates (whichever are lower).

So the timing of the off payroll date and requesting the lump sum seems important and I'm looking for info on how this works from anyone who has gone thru it. I'd like to stay on payroll up until close to EOY as possible and also be able to request my lump sum using this year's rates if they are lower.

For example, can I retire on 12/15 and still get the lump sum by 12/31? Do they use the date that I request the lump sum, or the date that they actually process it?

Any info is greatly appreciated....of course I will be making the appropriate calls to confirm, but wondering if anyone can provide concrete info.

by Anonymous
| 1466 views | | 7 replies (last March 2, 2021) | Reply
Post ID: @OP+19FkiP0n
Comment! It's anonymous!

7 replies (most recent on top)

You can stay on the payroll until the last working day of the year, however I encourge to go mid month, in order to get insurance open enrollment done before end of the month, when current insurance ends. Make certain to talk to an advisor at fidelity for all the pension options. Give the boss a months notice, just to be nice.

by Anonymous
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Post ID: @aui+19FkiP0n

If you look at changes the last 3 months you are talking .52 .51 .50 on the first of the 3 rates ... I don't see how they could go much lower, they are barely changing and they are historically low now. Also, if you defer a lump keep in mind that you get the deferred lump rate which the 2nd lower total of the 2 that the projection will show you for different dates at fidelity.

by Anonymous
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Post ID: @lfk+19FkiP0n

The Nov 2020 rate is effective 1/01/21 to 12/31/21, and the Nov 2021 rate will be effective 1/01/22 to 12/31/22. I took the lump 1/01/21 based on Nov 2020 rates. I think it hit my account 1/19/21. You can wait to see what the new rates will be this Nov, then decide which ones look better. If Nov 2020 rates are better, then you can take it up until 12/31/21. If the new Nov 2021 rates are better, retire on 12/31/21 and take in Jan 2022. If you 65, you’re retirement effective date is the day after, and you must take your lump sum the first day after retirement.

by Anonymous
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Post ID: @geq+19FkiP0n

The rates cannot get any lower. Grab it before Dec 16 to get 2021 rates. I am grabbing my lump sum by mid Oct. I retired already and was lucky enough to get the bumps in 2020 and 2021.

by Anonymous
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Post ID: @yaq+19FkiP0n

As the previous poster said definitely check with Fidelity regarding the timing/dates and keep an eye on the segment rates when they come out, usually around the 15th-18th of every month as they are strongly tied to corporate yields and the 10 yr And yes you should know by Sept -Oct which segment rates to retire with

by Ok
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Post ID: @rzy+19FkiP0n

Agreed that rates are only headed up at this point. I think it's safe to say that you'll be using this year's rates for sure.

by Anonymous
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Post ID: @obl+19FkiP0n

Check with Fidelity because I expect you'll be playing with tens and likely over $100k on the exact timing. If I recall, they wanted more advance notice than 15 days.

These rates don't move in a vacuum though - We're currently in a rising rate environment. I expect the Nov 2021 rates will be so much higher than Nov 2020 that you'll know in the Aug-Sep timeframe that there's no way for them to be lower.

by Anonymous
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Post ID: @xdo+19FkiP0n

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