Any chance that AT&T eliminates the lump-sum payout option as we head into 2022? Asking for a friend.
16 replies (most recent on top)
Always take the Lump Sum, invest it, and you can leave the monies to your heirs. If you take the annuity and tragically die, or if married you both die, the monies shift back to the AT&T pension pool. You don't want that.
Same answer as the last 20 times in the last 6 months this question has been answered... No. Lump sum is better for the company in the long run.
The sooner they can quit managing anything for you when you retire, the better off.
I understand the emotion. As for myself, I'll be making a rational decision
The sooner they can quit managing anything for you when you retire, the better off.
Dont even mention bankruptcy. When WM is spun off, T's debt should only be about $140B. This debt is very manageable by T with their wireless income. Within 10 years, T should be debt free.
I would never trust att. they will try their best to get of the pension any way they can.
Have your friend go to the pbgc website and read all about it,
Did you read your own link? The one in deficit is the multi-employer plan, which is not relevant to AT&T. And if T were to go bankrupt, you'd be safe up to the "PBGC Maximum Monthly Guarantees", which is spelled on on their website.
https://www.pbgc.gov/about/faq/pg/deficit-faqs
Have your friend go to the pbgc website and read all about it, or have your friend contact a financial adviser and ask what happens if the company files chapter 11 to reorganize. Not good…lump gone, and annuity lowered. But who knows if or when that might occur.
They'll reduce it but not get rid of it as part of the bankruptcy arrangement.
Retirees taking the lump benefits the company enormously.
Do you think they will voluntarily eliminate something that benefits them enormously? If you can't grasp the answer, there's little use trying to explain it.
As long as ATT manages the pension highly unlikely they would eliminate the lump sum. They could modify it at anytime as a tactic to get more people to cut the cord...also, if they sell the pension and administration to an insurance company or provider they could cut lump sum.
I agree with prior post, but it’s one easy way to get rid of lots of headcount without paying severance. 99% would select the lump sum this year (with the low pension segment rates). If lump
sum option were to disappear for one year…..hmmm
It is a blessing for T if you take lump sum since they are not responsible for managing your money. It is a headache and cost for them to pay you monthly annuity.
If they announced they were eliminating the lump sum, I’m convinced they would see a massive exodus of employees. Easy way to cut headcount. However there is probably a standard notification timeframe before eliminating this payout option. Anyone know if there is a required notification? Or can they just pull the lump sum option without warning.
Are you really asking for a friend or just too embarrassed to admit it's for yourself?
Not a chance. The company regrets every time a retiree elects to take the anuity.