What is the benefit of waiting till I am officially at 75 per the modified rule of 75, which for me will be when I am forking 65 yrs old. 😞 I had thought rule of 75 just meant years of service plus age and was disappointed to find that is not the case but what am I missing if I retire (or more likely, get retired) before age 65?
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So, if you are 54 years old in January, and will get to the 25th year of service in May, 2024, does that mean you do not meet MR75 until May, 2024?
Are the age and years of service as of January 1 of the calendar year? If you hit MR75 in August 2024 due to a service anniversary, does it really take effect in January 2025?
I left at 21 years service & age 57 with a 110k buyout and 400k pension & 450k 401k C-ya AT&T…..my goal was 1 million but I came close enough to jump this crazy train!!! Never looked back!!
Read your pension SPD AND call Fidelity! There are multiple pension plans with different rules - it's not a one size fits all scenario. Don't depend on answers to questions about something as serious as your MONEY from public forums.
"Prior to meeting MR75, when I would go into the estimator in Fidelity it did not show a big jump between dates prior to my MR75 and dates months after I met MR75. But once I did actually meet MR75 the estimator jumped about $270k for the same dates I had previously entered. So what I'm trying to say is, if you haven't met MR75, even when you put in dates post your MR75 date you may not see a jump in payout. Or you also may not see a jump depending on which company originally hired you, just sharing my experience being hired by Ameritech in 1999.
Either way, be sure to check the Fidelity estimator to see where you stand today, it sounds like you have less than 10 years of service, I'd be surprised that anyone got any pension offered after 2003, but maybe it differs by original company."
If that is true then how is that not fraud. Any dates you put in should take that rule into effect. Mine was SBC and it did not matter what dates I put the increase was basically nothing. Maybe Ameritech was different but the modeler did not increase near that much once I turned mr75 in the modeler.
"Legacy T and old SBC combined company's pensions almost double when you hit modified rule of 75. Others are just cash balance and it doesn't matter. Check your HR documents! We are talking like $350k jump on your birthday when you hit that magic number"
If that is true then that is fraud.
I was surplus'd as a Mobility 'Management' employee in early 2019 and was qualified as MR75. The only thing of value to me was the subsidized Medical plan as I'm too young for Medicare. Nothing else was of use to me. If you didn't leave the company by Dec 31, 2021, that's no longer an option. So, I don't know if the MR75 actually means anything anymore, perhaps to craft/union employees, or upper management...
Disclaimer: I am not a financial advisor, just sharing my experience having 23+ years starting with Ameritech.
Prior to meeting MR75, when I would go into the estimator in Fidelity it did not show a big jump between dates prior to my MR75 and dates months after I met MR75. But once I did actually meet MR75 the estimator jumped about $270k for the same dates I had previously entered. So what I'm trying to say is, if you haven't met MR75, even when you put in dates post your MR75 date you may not see a jump in payout. Or you also may not see a jump depending on which company originally hired you, just sharing my experience being hired by Ameritech in 1999.
Either way, be sure to check the Fidelity estimator to see where you stand today, it sounds like you have less than 10 years of service, I'd be surprised that anyone got any pension offered after 2003, but maybe it differs by original company.
" I just turned 50 and have 25 years of service. I am management. What does this do for me ? any benefit or something to look forward to in the future ? I do not plan on retiring, just curiuos what this magic 75 means for people. "
Have you read literally any other posts? Really depends on your legacy hiring company, but most likely you have nothing to jump for joy about.
You didn't (weren't able to) to retire last year, so you will not have access to subsidized pre- Medicare health insurance. That's a big one for most.
You will be able to pay for unsubsidized garbo coverage if you'd like, which you can of course do on your own on the Marketplace anyway.
You will also have access to a 30% retiree Mobility discount, which can be easily beat at ANY MVNO (Mint, Visible, etc) and any other major carrier as a regular customer off the street. So, you know, you've got that going for you.
That's about it.
Live it up. Congrats.
So I am confused. Apology for asking the same question .
I just turned 50 and have 25 years of service. I am management. What does this do for me ? any benefit or something to look forward to in the future ? I do not plan on retiring, just curiuos what this magic 75 means for people. Thanks
It depends on which company hired you. Bell South has cr---y pension. Ameritec was great...if they didn't lay you off first. Managemen29t not union
Legacy T and old SBC combined company's pensions almost double when you hit modified rule of 75. Others are just cash balance and it doesn't matter. Check your HR documents! We are talking like $350k jump on your birthday when you hit that magic number : )
Modified rule of 75, must meet at least one of the following
(1) Age 65 or older with at least 10 years of service
(2) Age 55 or older with at least 20 years of service
(3) Age 50 or older with at least 25 years of service
(4) At least 30 years of service regardless of age
This is correct.
Modified rule of 75, must meet at least one of the following
(1) Age 65 or older with at least 10 years of service
(2) Age 55 or older with at least 20 years of service
(3) Age 50 or older with at least 25 years of service
(4) At least 30 years of service regardless of age
all the modeling I do doesn't really increase pension no matter what age I put in. it increases but nothing to write home about. they should give buyouts to employees because you can definitely get better returns and get more money.
so didn't really mean anything to me. probably faulty modeler or att took stuff away with many of their policy changes.
yeah and their att services isn't worth you can get better deals and service elsewhere.
it use to mean something but doesn't really anymore. I guess if you meet you can officially "retire" from att.
if you didn't get hired with the paying insurance until medicare policy it really doesn't mean anything.
I also guess you can get att services at a retirement discount lol if you want them. me I don't deal with att billing and get better deals and service elsewhere. pretty sad for an employee.
Forgot to add the biggie, the only reason to achieve MR75
Pension bump. Not sure the exact term, but for some plans, I was Pacific Bell->SBC, there was a significant increase in pension payout once I got to MR75 eligibility.
So, that is the only reason, the other benefits mentioned below, not really worth much.
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MR75 was instituted well before SBC put together the 'Bell System' back together. Wish one could blame it on SBC, but don't think so.
What is left, this might not be everything
Ability to purchase insurance at 'cost' with AT&T's health insurance providers
Product discounts. While I haven't seriously shopped cell phone plan rates, I have 6 lines, seems the discount rate is fine. Internet IIRC @ $25/mo is a bargain.
Life Insurance death benefit/payout. It isn't much, like it used to be, currently 15K?
Not aware of any other benefits left for you all that have stayed. Pretty much, the retirement perks are definitely not enough to cause someone to stay longer than one would want to.
MR75 was instituted well before SBC put together the 'Bell System' back together. Wish one could blame it on SBC, but don't think so.
What is left, this might not be everything
Ability to purchase insurance at 'cost' with AT&T's health insurance providers
Product discounts. While I haven't seriously shopped cell phone plan rates, I have 6 lines, seems the discount rate is fine. Internet IIRC @ $25/mo is a bargain.
Life Insurance death benefit/payout. It isn't much, like it used to be, currently 15K?
Not aware of any other benefits left for you all that have stayed. Pretty much, the retirement perks are definitely not enough to cause someone to stay longer than one would want to.
It does not mean anything anymore if you are Management.
The Modified Rule of 75 was instituted because leadership realized that too many of us managers & occupational were headed for the door. This was an attempt to stop the bleed, SBC was the corporate equivalent of North Korea. This action worked and now the new & improved SBC aka at&t is left now trying to make up for their purchase mistakes by "rightsizing" employees while keeping the MR75 rule.
Makes sense? Correct, it doesn't!
I left 1.5 years before I met the MOD Rule of 75. I used the Fidelity calculator and it would not have made a difference to my pension. As a matter of fact, if I used the average segment rates (guestimating) I would still have been a negative 80K. I would no longer get subsidized health benefits and the only "benefit" I would have is 1/2 discount on my mobile data plan and 1/2 off certain phone accessories. Which by the the way, even at 1/2 off my plan with T, it's still more expensive than if I moved my cell to a different provider... Sigh.
That said, I left with my pension and 401k and rolled it over. Just a few days ago I switched cell providers and even at full price it's still cheaper than at&t's 1/2 discounts.
In cases like legacy Ameritech, your pension lump sum doubles on the day you hit MR75. This is not the case for everyone, it depends when and which pension you started with.
In terms of pension, it doesn't matter if I wait till 65 vs 64 years 11 nos. And I thought other benefits had gone by the wayside? What left besides the pension and maybe a random discount or two?
AFAIK the only thing left is you can purchase health insurance at AT&T's rate with no subsidy after you leave. Like someone said, they can take that away at any time too. All the other benefits have already been wiped out I believe.
For the pension it depends on what kind you have. If you have a cash balance pension, it makes no difference. Other plans may differ.
So if you leave before modified rule of 75 your pension is penalty is .5% reduction for every month.
50 20 does not meet 75
50 25
55 20
Or 30 years at any age 50 and above.
I’ve reached the mod 75 rule but the numbers don’t work for me. I’m 56 and need to work longer due to pension numbers are too low to retire now. My 401k was doing well but last 2 years of man made inflation as taken a big bite out of it.
Also, medical insurance is another big factor for most, the company rules can change anytime once you leave or retire.
Modified 75 retirement rules milestones:
Age Service
50 20
55 25
65 10
No reduction after turning 56 years but If you leave prior to being 56, it’s a .5% reduction for every month. It adds up quick so to maximize you need to wait. Need to run the numbers on Fidelity retirement calculator with different scenarios to see you final numbers.