Does anyone know when the November 2020 rates will be available?
I want to plug them in the Fidelity Pension estimator and see what my lump sum looks like for 2021,
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I talked to HR rep, she said if you are 65, to keep your Medicare supplement and get the 2020 November interest rate, you’re last working day (not a vacation or non paid day) must be 12/31/2020. The next day 1/1/2021 becomes your benefits date for the lump sum. Leaving on 12/31/2020 also allows you to keep the Medicare supplement money. Two important benefits
I took a 6 month buyout in Feb 2019 and didn't worry about NPV or NFV. I took my severance, and my entire pension and 401, completely divested everything T, and rolled it all into a private investment account that I had established and it has been good to me. Don't make the same mistake that a lot of the old "bellheads" made a few years ago and invest everything in "the network"!
@1esf+181wr7wg asked; "If I retire this December but don’t collect pension until December 2024 will the calculation of lump sum payout be at the November 2020 rate or the 2023 rate? "
The answer depends on your AT&T Pension Plan (as stated, there are many) - for most of the Plans it works like this.
- The Segment Rates for November are used to calculate your Lump Sum payment and Annuity payment for the entire next year.
- If you are 65+ when you retire you cannot defer payment to a later date- you must start collecting your Pension the month after you retire.
- If you are under 65 when you retire you can defer collecting your pension to a later date. Your Lump Sum payment or Annuity payment is based on the date you want to start receiving your pension (not the date you retire). Therefore, if you retire in Dec 2020 and defer payment until 2024, your Lump Sum or annuity will be based on the November 2023 Segment Rates. However, you cannot defer past the date you turn 65,
The November segment rates will be posted at or around 12/19 and will be the rates for 2020 The segment rates in all likelihood be significantly lower than last year with a higher lump sum
If I retire this December but don’t collect pension until December 2024 will the calculation of lump sum payout be at the November 2020 rate or the 2023 rate?
@fiz+181wr7wg - where on ssa.gov are they posted? I've never seen them there / don't see them there.
IRS posts at https://www.irs.gov/retirement-plans/minimum-present-value-segment-rates
Pension Benefit Guarantee Corp posts at https://www.pbgc.gov/prac/interest/vrp
cybERisa (private company) posts at http://www.cyberisa.com/books_erisa_tables.html
- and if you want the details, go to https://www.irs.gov/retirement-plans/recent-interest-rate-notices and look at the most recent notice (in pdf form)
You can plug in October rates to get an idea. Mine was about 7.5% higher than November 2019 rates. If you saw the video that came out yesterday, the example showed a 14% increase in lump sum value, but I don’t see how they came up with that, unless for illustrative purposes only
Edit fourth sentence above.....iPad threw in a couple of extra words, I should have caught, but you can get the jest of my comment
October rates were posted yesterday 11/18 so November rates should be posted around 12/18. Go to SSA.gov to see a list of the monthly rates so far this year. Note that if you are 65 your effective benefit date is the day after retirement. So I feel you retire before 12/31, you would be the lump sum based on the Nov 2019 rates, or retire on 12/31 and get the Nov 2020 rate which will result in a higher lump sum since rates are lower for 2020. If less than 65, you can choose your benefit commence date after your last day