How come i don't see a jump in my cash out since the rate dropped to 0%?
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I took VSP in March and retirement eligible. Put my pension in vanguard end May 2019 and have made 13% return in less than 9 mos and I put my money in very low risk/bonds/stocks
PBGC calculation. The PBGC method uses:
120 percent (or 100 percent if your lump sum is not more than $25,000) of the Pension Benefit
Guaranty Corporation (PBGC) interest rate in effect for the month prior to the first month in the
calendar quarter that contains your termination date.
The Non-Insured Unis-x Pension 1984 (UP84) Mortality Table
Your age in whole years and whole months, as of the 15th day of the second month in the
calendar quarter that contains your termination date.
Quick question...
January PBGC rate is 0.0 January 2020, if feds drop rate in Dec as presumed another quarter percent, how much if any would that effect GATT, and would it push lump, even with 0.0 PBGC rate locked for January. Would there be another bump on top of 0.0 ( 0.01) estimate on benifits, and would, if any bump, apply for January if drop in Dec ? Tx
Your still not getting it. Commencement on 11/1 & 12/1, the PBGC rate is .5, and 1/1/20 the PBGC rate is 0.0. That's a fact that will not change. Right now if you hit lump sum estimator, it will show you those 3 figures, it cannot change, period. Next month, you can do it again, and it will show you the actuals for 12/1, 1/1, & 2/1. 12/1, 1/1 will be the same as you see it today, it's locked in and does not change.
The PBGC Rate used is middle month of the quarter prior. The Nov rate will be used for the Jan/Feb/Mar calculations. The Feb rate will be used for the Apr/May/June rate. The May rate will be used for Jul/Aug/Sept calculations. The Aug rate used for Oct/Nov/Dec calculations.
The GATT rate is current.
Entering 0.1 made mine go up 43k with off payroll 12/31
After today’s stock down turn based on poor manufacturing numbers, we might see a Negative PBGC RATE in the near future.
Called vz benifits today, they cant project a fed rate drop formula, or set a 0.0 or 0.1 to see difference, their system defaults back to current. And their current is .60 with gatt of 2.2 ( as of today in their system), you can use on vz about me estimate pension and put 0.1 gatt, to get a guessamite, .....if rate drops again to 0 as far as fed ( they been talking and say dec), and vz is doing 0.0, I'm not sure how it would effect as far as increase if anyone knows, be appreciated , and if that would show 1stQ 2020. (is it a push?)
The reflection for January,feb, mar is posted 12/15 according to benifits connection on phone, as that is date for rate going foward into 1stQ
my 12/1 and 1/1 are pretty much the same. They show .50 for both
The lump sum estimator estimates for next 3 months commencement, and changes on the 1st of each month. Today, 10/1, it now shows your lump sum for 11/1, 12/1, and 1/1 commencement. The 0% PBGC rate is for 1/1 commencement, and it should be significantly higher than 12/1. That rate is locked in for 1/1 only. On 10/15, the new PBGC rate will come out, and on 11/1, the lump sum estimator will show 3 months going out to 2/1 commencement. If the rate is the same, Feb will either go up slightly if you are under age 55, and will drop slightly if you are over 55.
Pension went up, this was a surprise
And is very good news.
58k for me
It took a while for them to update the lump sum estimator the last time it dropped. The 0.0 goes into effect in November but my understanding is that becomes the number for the entire quarter.
Oh boy! Cha ching
enter 0.01
Mine went up 20K
I would have thought it would have shown up in the lump sum estimator
Because the program treats zero as blank.