Estimated 80% tied to CPI or IPI as well? Appreciate the memo and know uncertainties but still a little hard to plan finances. L2 still likely to get 11%, plus or minus taking CPI+IPI?
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@2lwi, not that I am aware of. When you leave the company, roll your pension into an traditional IRA. That should avoid the immediate tax penalties. Look into your options.
Can we roll pension into the 401K without penalty?
The bonus should be paid in stock, not cash. It gives employees the option to hold onto it for the dividends or sell it for a lump sum.
From all of what people have seen and experienced and the general MO, as well as the natural selection process, in addition to how other companies have dealt with in in the past.
They are looking under every rock for ways to save money, and the annual bonus is not off limits.
I hope that it is not to be done away with, yet, take a look at what McFleshLight is already got in the great hopper of plans. It's the beginning of the end of the annual bonus, some speculate.
Why are people saying there will be no more bonus after 2021? Where is this info coming from?
Expect to see no more annual bonus to be earned in 2022, for the 2021 year, it's coming to an end.
Considering I thought we would get ZERO , 80% is really good, given COVID they could have easily said, sorry tough year no bonus. Every Year I expect nothing so when we do get one it is good and if we get 80% this year I will be happy for sure :)
They are setting the stage to tell us we will get a reduced “token” bonus like we did the year of our failed mobile purchase.
Ten years ago there were very clear targets set for the bonus. The metrics & attainment calculations were clearly defined and publicly communicated. Several years ago they said, "We are all in this together", and the bonus was based on the company's performance on Wall Street...EPS, free cash flow, and fuzzy goals like Operating Contribution & Unit Cost. Today they don't even bother telling us. They say they have recast performance targets for the rest of the year, but they still don't tell us what they actually are. I assume its more Wall Street stuff, but I guarantee that doesn't apply to the upper echelon. They'll get their bonuses & perks no matter how the company does.
Wasn’t the email stating that they are reducing the target, so that, it will be easier for us to make our goals for second half 2020? That’s a good thing.
Difficult to plan finances? You should expect to receive nothing. You should always expect to receive nothing as bonus. If/when a bonus arrives yiu then save or invest it. This COVID mess is just starting and based on current trends will just keep getting worse. Hope you have 6-12months of expenses saved!
I have also never factored in the annual bonus either, only poor financial managers do, those deeply indebted. The point about the annual bonus, is that you accept a lesser base pay, with the idea its made up once a year with that annual bonus. That is to say, that without the bonus, or a reduced one, you are no longer being competitively paid a full compensating salary in your marketplace.
I would never factor the bonus into my finances. It is just that, a bonus, a plus, something that you should not expect and it is subject to goals that you have no control over. Now factor in the ATT leadership and you have another reason you should not include the bonus in your budget.
Wrong regarding lump sum. The lump sum benefits the company in two significant ways: it gets the pension liability off the books (less debt), and, in most cases, they pay the retiring employee less than what the employee would receive as a monthly annuity, for the rest of his or her life.
AT&T has been expanding the availability of the lump-sum option (as have other corporations), even offering to buy out pensions of retirees who previously retired and elected the monthly annuity.
The lump sum is not going away.
I would expect two things at this point based on over 20 yrs with the company and the general operating procedure of the leadership: 1) expect the worse, plan for it. 2) expect the annual bonus to permanently go away after 2020, there will be no such for 2021 and beyond. In 3/21, that'll be the last "bonus" you'll ever see
Oh, 3), annual bonus, that's only for top leadership, and will remain, not for the peasants, aka you
While talking about money, I suspect that the lump sum after this year, expected to be a low interest rate published in November, will be a better deal to take, and never offered again. If you have the Pension, and don't bail this year, then you will have to take the annuity if you leave 2021 or later, no more lump sum opportunity.