I heard Headquarters was ready to put out an HR Statement that would eliminate Lump Sum Pension payments in the future. Has anyone else heard this rumor or heard anything regarding the elimination of a lump sum option in 2022?
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So, why the down votes for recognizing someone with reading comprehension issues?
What does it mean to lack comprehension skills?
Students with weak comprehension have difficulty recalling what they've read. They might get parts, or some details, but may have difficulty remembering a book or story as a whole. Homework and schoolwork relying on their understanding of the text will be difficult. These students may not enjoy reading for pleasure.
https://en.wikipedia.org/wiki/Reading_comprehension
Actually it's not a bad question! If AT&T pushes the pension money to another company to manage I would think the new company would not want to offer the lump sum option.
"To 2pzg+1cwlrX29: you're an id--t! It costs a lot to administer annuities over time and lump sum is a cheaper alternative and relieves the company from maintaining high balances to back future annuity payments
Quit posting false information!!"
You must be the one that can't read.
To 2pzg+1cwlrX29: you're an id--t! It costs a lot to administer annuities over time and lump sum is a cheaper alternative and relieves the company from maintaining high balances to back future annuity payments
Quit posting false information!!
"Lump Sum payments saves company money."
And we have the those with limited comprehension skills.
Lump Sum payments saves company money.
Here's a good read regarding why corporate America is selling off their pension obligations to insurance companies. You have to ask yourself, if that were to happen, what happens to the PBGC protection?
https://www.washingtonpost.com/news/wonk/wp/2014/07/21/why-more-companies-want-pensions-off-their-books/
The lump will disappear only if ATT sells of the Pension program like Ford is doing. The Lump Sum saves ATT vs managing the annuity pay outs for years
Thing is they might just do it to get people to leave in 2022 sure they have discussed it. They could use that as a tool then simply reinstate it the next year. With the majority leaving this year that would get the hangers on to leave. I know I am taking mine and HE GONE in two months
When a pension fund is unfunded (like AT&T's), the lump sum offer is designed to reduce the future funding (liability) to keep the pension fully funded. I doubt they will eliminate the lump sum as it reduces their liability to keep it funded.
Someone posted this earlier. It does help you decide whether to take the lump sum or annuity as this decision is different for everybody.
https://techstaffer.blog/2020/11/10/a-deep-dive-into-atts-pension-plan/
https://www.pbgc.gov/wr/benefits/guaranteed-benefits/maximum-guarantee
You might want to check this site out to see what could happen if the company sells the pension plan, or defaults.
When making the decision on Lump vs annuity, here's a key point advisors will make.
"If you’re leaning toward choosing guaranteed lifetime income by remaining in the plan instead of taking the lump-sum offer, be sure you have confidence in your employer’s long-term viability."
I won't speculate on whether or not they will stop offering the Lump but here's some good reading on your decision. Notice towards the end they mention, and I quote;
"After all, if the reality is that it would only take a return of 1% to 2% on that lump sum to create the same pension cash flows for a lifetime"
https://techstaffer.blog/2020/11/10/a-deep-dive-into-atts-pension-plan/
The company wants retirees to take the lump. It gets risk and liability off their books
the company will whatever will save them money. if that includes a buy out they will do a buy out.
This keeps coming up here for some reason. Makes me think it’s s the same person continually throwing it out there. As mentioned numerous times, the lump sum is in the company’s interest. They want you to take it.
Some fake news to rile up the ignorant.
It was my belief that Lump Sum saves the company in the long run.
That would hurt, when will they stop trying to find new ways to sc--w employees?