Segment Rate1: 5.10%
Segment Rate2: 5.83%
Segment Rate3: 5.68%
Compare these to November, 2021 Rates:
Segment Rate1: 1.02%
Segment Rate2: 2.72%
Segment Rate3: 3.08%
The final 2022 rates will be out in mid December.
10 replies (most recent on top)
You make some valid points. ButI”lol be 61 soon and it may take years if ever for the lump sum to recover to what it is now. That being said if I were five years younger I would most likely weather the storm and ride it out and hope for the best. It really does depend how close to retirement you are but those just waiting around waiting for some kind of offer which in all likelihood will never come IMHO is foolhardy
For those that are freaking out about these rate changes - Have you really Stopped to consider your options - perhaps those that others aren't talking about ??
For example - Do you need to immediately elect an Option or can you Wait? Do you have your 401K that you can begin to live on in retirement? If so, have you considered letting your pension "sit" until interest rates shift again and your lump sum option has increased in value? There's more to consider within this option, but have you considered it?
Or - Are you being lead down the path AT&T would like you to follow - through scare tactics to get you to retire now so you get the best cash option because interest rates are changing?
Challange your financial advisor to fully analyze your options. If they're worth their salt, they'll bring this option up -- and the risks that go with it.
Just remember, from those that have chimed in on the numerous threads
Legacy T
Legacy S
Legacy BellSouth
Management or Bargained employee
All these may have different nuances in their lump sum and off payroll dates. I'd guess, in all cases, suppose there might be a state or two that isn't a community property state, you will need a notarized document from your spouse, indicating approval of your retirement disbursement choice.
Legacy SBC management, you will have until Dec 30th, as said by others, other companies may have different dates.
Huge reduction if you want Lump Sum, if you are only interested in the annuity like disbursement, then you are probably not impacted by these deadlines
Taking annuity. No impact. Will stay till they pay me to leave and will get unemployment. Winner, winner chicken dinner!!!!!
I saw the writing on the wall at least six months ago and will be leaving on 11/30. There is still a small window to get out of Dodge by 11/30 but you need to act now if you’re legacy T especially if you have a legally recognized spouse. This is only affecting people eligible for lump sum distributions if they choose to go that route. Good luck to all!
CWA West, have to be off books by Dec 30th.
In response to:
"Loose 30+% this year. Next year will be worse. Get out by December 30th."
If you are legacy T your commencement date is the 1st of the next month that you choose to leave. This means that you have to be out of the books by November 30th in order for your commencement date to be 12/1. This will allow you to keep the low interest rates for your lump sum.
If you leave after 12/1 then it's too late because your commencement date will by 1/1/23, which is too late to use the November 2021 rates.
Call Fidelity ASAP because you still have time to leave...but that window is closing FAST!!
Loose 30+% this year. Next year will be worse. Get out by December 30th.
No impact to Mobility pension. Company contributes very little to that program.
For those that will be impacted... you better act quickly or you will get a shocker when you see your pension drop by about 40%!!!
Call Fidelity and use the estimator to calculate what you will lose. If you plan on leaving within 10 years you better jump now or else you will be working a year, or more, for free.
Good luck.