curious, how much is the lump sum pay out for a core vz employee ie splicer,opt, after 30 years employement, and what is the best option monthly payements or lump sum,
31 replies (most recent on top)
About 80% of the "answers" I read here are incorrect. Get yourself a reputable financial professional to guide you. It's not a "one answer fits all" kind of decision. There are many factors... your age, service, GATT or PBGC rates at the time.
Any buyout numbers for age 51 and 25 years service? Here is the monthly but can't pull up the buyout because it's shortly after the current contract ends:
Single Life Annuity $1,439.90 N/A
Pop-up Joint and 50% Survivor Annuity $1,332.40 $666.20
Pop-up Joint and 60% Survivor Annuity $1,323.45 $794.07
Pop-up Joint and 70% Survivor Annuity $1,309.75 $916.83
Pop-up Joint and 75% Survivor Annuity $1,302.90 $977.18
Talk to a financial adviser you can use your money before 59.5. Rule 72t ,Google it!
I’ll be 50 September 27 and have 31.5 years
Worked in DC whole career in Fed Systems. Lump is 765k right now
Need an eisp plus was diagnosed with MS 3 years ago and been on the underlying condition since March at 450 a week with 250 going in 401k. I’m ready to go but will starve before 59.5
Im 52. At 55 my lump sum will be 130 grand lighter, no thanks
72T isnt the best thing to do.. You have to stick to the plan and are required to draw down the amount the IRS charts tell you to.. Better off waiting until 55 and using the rule of 55 for my 401k and then taking then lump and letting that grow.. dont you think?
to the last poster,what do you mean you cant touch it? put it in a 72t and draw your 4.2% til 59
49, TTA- 30 years
970k
Can’t touch it until 59! So why bother
Exception: you can touch it but you will pay a penalty on top of the taxes
There is a 55 and over rule. If u retire and no longer work for Verizon. You are allowed one withdrawal a year without penalty. U don’t have to wait til 59 1/2. U will always pay taxes
For those of you who can't tell, the union hater with NO LIFE is obviously here, multiple down voting every single comment. Man, the union lives rent free in that dope's head!
Having retired, I’ll say that I am so glad I took the lump and used an investment firm to handle the annuity.
Not only have I made money during this downturn, but everything is easy as pie to deal with.
Verizon, on the other hand, has screwed up, or was late, in nearly every step of the process.
So, I am glad to have cut all dependence on hoping Verizon comes through. They don’t come through, and when they do, it’s just another delay for some picayune reason.
However, if you take the lump and don’t use a professional firm to manage it, and try to manage yourself, statistics show 40% of people who do that are nearly wiped out in 5 years. Some do well, but the odds are against you. It requires more than just math skills.
My advice, take the lump, get a retirement annuity firm to handle it, and cut Verizon completely out of all of it.
yeah its pretty high right now . im a splicer in manhattan and this coming march will have 30 yrs. at age 51 . buyout last i checked was about $875k for me. if i wait til end of contract with 32 yrs. it was roughly the same as i would be 53. and as you get older it starts to drop.
To the last poster my lump drop about 4 grand amonth after my 52 bday. If i stay till end of contract i drop 105 grand. I would be 55 at end of contract
After Age 55, Lump Sum Declines Regardless of Interest Rates. I was lucky to leave at 55 yrs old with 1.0 Interest Rate.
2 Factors Reduce Your Lump Sum:
#1: The day after you turn 55
#2: Interest Rate Increase
Then, in theory, you can't access your lump sum until 59.5 years old.
One thing for certain. If biden wins. Lump sum going down, take the money and run if you can
I don’t believe OT is factored in. Late shift and N day’s differential do. Also completing TTA program in the past.
All good posts,please explain how OT(overtime) factors into pension total,
interest rates will NOT go up 3, 4, 5 points. those days are LONG over
@1isf+16miqOLj You may want to think about 2023...lump sum starts to go down after 55
For those of you reading these comments and thinking that a $900k lump sum is in your future, it ain't necessarily so. That figure is highly dependent upon the current interest rate, which at the moment is ridiculously low. Let's say you've got another 5 to 10 years to go to be eligible and that interest rates are 3, 4, or 5 points higher at that point, Your figure is not going to look anything like that.
The older you get the less your buyout. Your monthly is an annuity, it would cost the company 950k to buy an annuity that pays 3k a month for a 50 year old based on his life expectancy. You'll be 60 in 7 years you won't love as long so it will cost less especially if interest rates go up.
You need that magic Number
Age 50 and under with 30 years
Age 55 with 25 years or something like that
I'm 53 with 23 years, my pension is est to be valued at 460k, so 7 more years will make that big of a difference, 460k to 900k!! Really
52with 30 yrs 970. Tta and long time on the nite tour
I’m 50 years old with 30 years. My estimate is 950k
As of now, it’s about 912,000 k, though the are estimating GATT rate to go down in September to 1.27 % which can add on another 30 -40 k pending on your age... I am a 54 years old, younger people with 30 years will have a little more..
825k, no way ,more like 650k
Total amount depends on marital status and your age at retirement. If you take the lump sum and are currently married or divorced, they need to sign off on the lump sum. If you take the lump sum, you become responsible for the $$$ for the duration. One good part is that if you have the lump sum, you can designate beneficiaries in addition to your spouse.
825k
big buyout in the works
Go to the net benefits page and do the pension estimate calc. As far as the method of distribution, it's an individual decision based on your circumstances. Best decided after consultation with a financial planner.