And if so, are we just supposed to accept that? If my assumptions are incorrect I apologize in advance. I am under the impression that as of yesterday we should be seeing a lump sum estimate on Benefits Connection that uses a 0% PBGC interest rate for the calculation, yet we're still seeing .5. This would make the lump sum figure incorrect. You can model different scenarios on the site but I'm not sure I trust this method. Someone also mentioned you can't put in an interest rate of 0% for modelling purposes. Shouldn't the company have to address this so we can get the real figure? I would guess that a difference of $50k to 75k (or more) could possibly make the difference between a person deciding to retire or not.
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I was told as an associate we will not get the Nov pbgc. You would have to leave the payroll in January. The eisp will require us to be off the payroll in Dec. The difference between mgmt and associates is mgmt can pick a commencement date but associates can not. I was hoping for the Nov pbgc
The associates PBGC rate is based upon the middle month of the quarter prior. The Nov PBGC will calculate the Jan/Feb/Mar lump sum. As will as the GATT. The higher of the two associates get.
Thanks. We will not get the 0% if we leave in January. We would have to be off the payroll in Dec. Associates lump sum goes by off payroll date. The 0% would not go into effect until January
truIt's TRUE, i called yest and posted yest on another thread. Per VZ benifits on call...managers get 0.0, we are subject to gatt. A interest rate drop by feds presumably end of month to as late as December per wall street will help gatt. Eisp better, hope for the best.
Craft gets the better of the two rates. Therefore, therefore the 0% will go to craft if you leave in January.
Yes gatt rate 2.12( workers ) better rate managers pbgc rate 0 management. The union coudent get us better rate .o well just have to wait for package I'll never get.yea yea iam bitter!!! I know lucky I have a job!
That is correct. We would get the better of the 2 rates, however associates pbgc is figured from 3 months prior. I was told that if I retire at the end of Dec that my pbgc would be .50 not the 0 that is coming up . At this point our pension is better with the gatt since I would not get the 0.0. If I am wrong please tell me. Thanks
It may take a day or two for the correct PBGC rate to show. For those that don’t know the associate contract well, and being a spouse of an associate, they are lucky enough to get the higher lump sum between the GATT and PBGC. Look into your benefits if you don’t know this information associates and correct yourselves Mgmnt.
It's true for Mgmt to go by the Pbgc rate. Associates are not that fortunate . We have to go by the gatt. Mgmt can delay their payment to 1/1/20 to get the 0 pbgc. Associates go by the rate 3 months prior. That came from VZ benefits !!
Absolutely criminal that this simple and basic information isn’t easily and readily available. Estimates are worthless.
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.
Ok forget that 0 percent. 25 percent. 5 percent!!!!! Its 2.12 PERCENT!!! U CAN SEE IT ON IRS WEB SITE . and yes if u put those numbers in o.o .25 .50 in lump sum will look great hell I fell for it too I was packing my bags too ...but no Again it is 2.12 put that number in and u get same as the estimate