Does anyone know what the new lump sum pension rates will be? What about the IRS "mortality tables?"
Fidelity mentioned the new rates would be available 11/20, but I was wondering if anyone else had a head's u on this.
15 replies (most recent on top)
Oct-20 0.54 2.38 3.28
Refigured man with the new rate for October...up 45K. That’s why I waited...it was obviously going to be a larger lump by 5-6%. In a election year I’ll take the sure thing. Glad you did well in the market.
I am considering a monthly annuity of $4195 as I don’t want to worry about the market. My 401 and all other investments are in stocks/bonds/CDs, etc. Between my pension and SS I shouldn’t have to touch my other investments. Seems like a safe option.
Just met today...all indications are looking between 5% and 8% increase on the lump
Hahah! You people who are eligible to take the lump, and have not done it...are complete id–ts! I took my lump in April. Made an absolute k–ling in the market! Why in the heck would you leave your money in a pension, when you can invest it I the market?!?!?!?
Oct rates are Seg1: 0.54%, Seg2: 2.38%, Seg3: 3.28%
These are higher than Sep rates, which were Seg1: 0.51%, Seg2 2.31%, Seg3: 3.15%
November rates will be avail late December.
District 3 Mobility Employees Pre 2014 who were fully invested then terminated/left in 2019-2020 have to wait until AT&T declares they’re eligible for lumpsum as it isn’t apart of the plan summary.
I have $9K I can’t touch in it without an annuity.
Any bets this interest rate has bottomed out?
Just met today...all indications are looking between 5% and 8% increase on the lump
go to pensionsoft website and you can see last months rates ... you can use those plugged into the fidelity calculator for an after Jan 1 guesstimate
I seem to recall that the Kongress put something in the Covid bill that lobbiest wanted "relief" as they knew intrest rates would drop and companies would have to pay out a ton more in lump sums. I think Stinky mentioned this a while ago?
So don't be surprised and say Thank you to the stinkin' gooberment for screwin over the little guys yet again. P R I C K S
Take a look at: https://www.pbgc.gov/prac/interest/vrp
(all others, does not yet show rates for Oct 2020, trend is downwards)
The rate decision is made by the Board of Trustees on Nov 20. The Fidelity site does not show them until Dec 16 as it doesn't apply until Jan 2021. You may be able to ask them before but it won't be shown online. Based on the Fed interest rate cut of 1.5 points in 2020 due to the virus, the corp bond rate will be adjusted to match it. Last year, I think I saw it online around Dec 16-17. I expect a good bump in the lump sum like last year :)
Take a look at this site for the rates: https://www.irs.gov/retirement-plans/minimum-present-value-segment-rates
Fidelity can’t give out the new rate until it is finalized on the 20th. It would be a legal quagmire if they did.
Call Fidelity for new rates. Fidelity informed me that part of the calculations numbers is based off my expiration date (death) is 85 years old for a male.