I have a question, verizon has set a 0.0 effective Jan, which should post Nov 1sr when looking 3 months out. The Fed is presumably going to cut rate again, speculated end of month maybe into November ( most likely per wallstreet) but can be mid dec as well. When fed cuts rate our lump sum increases as it effects GATT. If verizon is at 0.0, can a fed cut also bump up that lump sum on top of 0.0 for January figure, and if so, how would it apply time wise if applicable?
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question for @5yyc. I'm trying to understand how this works for the craft vs management calculation. So if I understand this correctly, that 0% PBGC rate was really never available for craft because it occured in Sept, which is not a month that is ever used in the craft formula. Craft formula only uses middle month of prior quarter, (example Feb, May, Aug, Oct) Is that correct? Thank you.
@@11tKT4cb-5ede It is not BS for management employees. Our calcs use the PBGC rate of 0% for a January commencement.
Ok this is from Verizon benefits center!!! The gatt rate is 2.12 percent Verizon using.....so all this bull sh– of 0.0 or .25 is c-ap!!!!! And if u use estimator at work u have to put 2.12. Then it resets in jan for next 3 month .thanks to all the people who post wrong information to confuse people .stay off the site if u dont know anything!!!!
Thank you 2 fbi. U are correct
"The November PBCG Rate holds for Jan/Feb/March calculations of lump sum." That is not correct. The 0% is guaranteed for Jan 1 2020 Only. You won't know what Feb 1 rate is until 10/15 when the PBGC posts the new rate, then VZ will show that impact on 11/1 when you project. So right now, the only rate that is guaranteed is for 11/1 (.5%), 12/1 (.5%), & 1/1 (0%).
The November PBCG Rate holds for Jan/Feb/March calculations of lump sum. It’s always the middle month of the quarter prior.
Bear in mind the lump sum is the higher sum of money between the GATT and the PBGC rates.
Run forest . Negative rate is 55k for me.
so in your opinion what would be the best day to retire on ? thanks
So if I was to retire 1/1/2020 I would be getting the most I could out of my pension.
Can someone please explain to me. My pension comencement date will be 1/1/20. What rates should I use for a projection and are these rates guaranteed for January. I see there is some sort of a trade deal and I am concerned the rates will go up. Thanks
No... Nothing the Fed does is going to make that PBGC rate of 0.00% go neg. period!
The Fed funds rate was at 0% for nearly 8 years under Obama, and the PBGC NEVER once hit 0.00 once. It never even went to 0.25%, much less 0.00 during that entire time period. The fact it has now, and for VZ Jan 2020 is a Gift... Don't expect it to last beyond a month or two... if that long. And if the US agrees to ANY sort of China deal today, even a just an agreement to a framework... that PBGC rate is going to jump back up to 0.50-1.00 in a matter of 4 days. (10/15)
GATT is effected by the FED rate, but the GATT lump figure is NEVER as high as the PBGC Lump.