I read several previous posts where people reported their lump sum significantly increased when they hit the rule of 75.
I am within a year to making the rule of 75. I am estimating my lump sum now and then also using a date after I reach rule of 75 and there doesn't seem to be any meaningful increase.
Was this something in the past? Or never a thing? Or something that isn't shown in the estimator?
The pension band is based on bond rates that come out annually in November or December. This changes the payout amount for the following year. That payout amount isn't announced until the end of each year. A good fiduciary can usually give you a good idea of the possible change in the payout, but even they don't know the actual rate until its announced.
If you’re 55 you can leave with 20 years service at full retirement…..I Received an offer to leave early at 57 with 20 1/2 years and I qualified. Best thing I ever did!
There are so many different policies that change based on year you were hired and the company you started with. I have <30 years and could get cash balance if I retired tomorrow. People with just 5 fewer years don't have a cash option until much later in their timelines.
This might be a quirk in the system that estimates your retirement benefits.
I do not think you are even eligible for a lump sum until you have either earned a full retirement at 30 years of service or have satisfied the modified rule of 75 clause.
Until you have earned the 30 years or satisfied the MR75 clause, if you are not yet 65, you are only eligible for a deferred vested pension.
the above might be slightly different , depending on the company you actually work for
If yo I have a cash balance pension, you do not see those significant jumps at major milestones. They contribute like 2% of your a salary to it every year.
Still happy to have it, a lot of people don’t.
Hired by BellSouth - no change
Call Fidelity - Like someone else said it may depend on your hiring company. It was significant for me too.
I have 23 years with the company and am 45 (soon to be 46) - I will hit the 75 rule when I’m 49 IF I’m still around; For me the service pension kicks in ONLY when I turn 50 (they have a clause in there for age)
You can only hit MR75 at ages 50 and above and have the required years of service. There is a chart. I think if 30 yrs you are good. Age/yrs- 50/25, 55/20, 65/10.
For me, no difference. And no medical. Just a thanks and a fare thee well. Very little difference between leaving and staying when I calculate added costs for commuting, parking, clothes, incidentals.
Leave and have take out a few times less a month or stay, stress out and sit in traffic. Haven't received final notification yet, but don't really care either way.
Legacy Ameritech. When I estimate, it’s almost double when I hit MR75. 1 day prior to MR75 (just 1 day!) and it’s like cut in half.
It depends on your hiring company. Legacy S, Legacy T, SBC, etc. I have met MR75 and there was no significant change due to me being Legacy T. A peer is legacy SBC and the difference was over $500K. Use the tools on Fidelity site which will calculate it for you to see what your amount will be and if it will increase once you hit MR75.
I have 23 years with the company and am 45 (soon to be 46) - I will hit the 75 rule when I’m 49 IF I’m still around; For me the service pension kicks in ONLY when I turn 50 (they have a clause in there for age)
I’ve run the scenarios and my lump sum amount (for example) increases 3 fold
I’m in a peculiar situation - I have resources (very close friends who will take me in or rent me a property for cost) in both Atlanta and Dallas (most likely where my job will be moved to) so moving for me, than say someone who has to uproot their life is more feasible but do I do it???
If I walk away now I’m leaving around 400-500K on the table in service pension (again if I make it through any further cost reductions) - but do I really step away from my home base (St Louis) for a couple of years to hobble myself across the finish line or do I walk away (still pondering)
Depends on your hiring company. For me it was significant.
Rule of 75 was a past retirement benefit. Be happy that you have a pension at all.