Thread regarding AT&T layoffs

I believe this only applies to Legacy T pension programs.

Just ran mine with dates in 2021 and 2022. They are the same as when I ran them last month. Not sure what some people are seeing.

just ran mine on fidelity and it has not changed against the saved and PRINTED estimates from before. Just noting that because someone above thought that they may have updated the tool early. Not yet.

The company has lowered the value used to determine lump sum payouts from 1.25 to .75 I’m. Not 100% sure on those figures but they were lowered about 1/2% and it appears to be drastically reducing lump sum amounts from 2022 onwards and was just curious if this is affecting all management or just certain segments. I am union but this should be a concern to everyone as I’m sure the company will attempt to inject this into all future CBA’s as well

I retired from T about a year ago and took the lump sum pension which is doing quite well right now. That could change because a portion of it is invested in the stock market. To answer your question about how much you will receive you need to understand Net Present Value and how lump sum is calculated.

NPV has:

R - Net cash outflows during a single period (what the company would pay you each month/year)
i - Discount rate or return that could be earned in alternative investments (IRS segment rates posted in November of previous year)
t - Number of timer periods (how long you are expected to live based on actuary tables)

The net cash outflow to you is the payments you would get if you took an annuity. That is based on how much you have accrued based on company contributions. I hear that is changing, but it should only impact future payments made by the company.

The discount rate is three discount rates (short, medium and long term), so one lump sum is determined for short term, one for medium term and one for long term (if you life expectancy (t or term) allows for all three calculations) using the R (cash flows). These three numbers are added to determine your lump sum.

If you retire today and decide to take the lump sum tomorrow, you will use the interest rates from last November (which are very good because they are low) to calculate your lump sum with your current age used to determine the term.

If you retire today and decide to take the lump sum at the end of the year (waiting to see if interest rates are higher or lower), you will use the interest rates from last November or this November based on your choice to calculate your lump sum with your age at the end of the year used to determine the term. This means that if you decide to use last November's rate the lump sum will be lower because you have grown 10 months older and your term was reduced.

If you retire today and decide to take the lump sum 10 years from now (which I don't recommend), you will use the interest rates from November 2030 to calculate your lump sum with your age 10 year from now to determine the term. Even if interest rates are lower in 10 years (which is unlikely), you have erosion on the lump sum because the term would be reduced by 10 years.

I hope this makes sense.

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Is this new interest rate calculation affecting all of management or just a select group from certain legacy operating company’s ? Does age and or seniority factor into it in any way? Just curious.

Can’t help but wonder if they’re going to try pulling the same nonsense in our new CBA next year. I’m sure our union will roll over if the company will allow card check at the call centers in Mumbai

glad I left and took the last buyout when i was offered. I will be making more when I retire than if I had stayed in the pension. looks like they are doing what they with the pension now.

couldn't stay for the 6 month salary had to leave and looks like i did just in time and I could see this coming. now I am with a better company with more customers and better benefits. and the company doesn't have the atmosphere of a funeral. they are actually driving for the future and doing leading edge stuff.

my advice to folks is leave and take a pension buyout if they give one and get a finance professional that you trust and will take that money to a lot more than it would ever be under the pension at cesspool nwo att.

That's right, you have senior in front of your title. haaaaaaaa,, could have done way better as craft, not so funny now. Is it?

@hhe
" But you do have that fancy title!!!"

Your schtick is getting old. Try and come up with something new.

But you do have that fancy title!!!
You folks knew when you went in to management they could do what they wanted...and you would be the first to get it.
Pro tip...they don't care about anyone, you are just easier to sclew.

That right there is a showstopper. How can anyone afford to lose any portion of their entitled pension.

The rate of growth starting in 2022 is reduced for lump sums. So what you expected to get in 2022 and beyond is less. I retired in 2019 and will be taking my lump sum this year. It was a good ride.

Are you implying that pensions will be provided at a reduced rate beginning 01/01/2022? Inquiring minds want to know! With all the employee benefit takeaways, hard to imagine there is much left to cut.