Thread regarding AT&T layoffs

Replying a second time to: Post ID: @fwv+18D9CFnM

• So if you put in Dec 14, before the rates changed, but not due till Jan 1, does that mean you got the old or the new rate?

I put in on Dec 14 for my lump sum to be paid on Jan 1 so I would get the new rates. Fidelity actually deposited the full amount into my IRA on Dec 31...Thanks AT&T, for funding me a day early.

Called Fidelity. Asked the same question 4 different ways. Whenever you retire in 2021 the November 2020 GAT rate will be used to calculate your lump sum payout.

Your last day does has no bearing on how interest rate changes affect your lump sum payout.

Example:
You quit in October.
Interest rate goes down in November.

If you take the lump sum in December it's based on the existing interest rate. If you take it the following year it's based on the new rate released in November.

Everyone needs to call fidelity as you can see everyone has different response. Get it in writing from them.

This ‘board’ is not a place to gather accurate, competent financial advice. The decisions you make during this crucial time will be long term affective. Seek professional advice.
Do not use this forum as a resource for fact finding. As evidenced by 95% of the posts, most contributors are not in a position to offer competent, thoughtful ‘advice’.

I agree with your MF Stanky comment. I too will be leaving in 21 because of his back stabbing move on our benefits. My first step is meeting with my financial advisor in January to get my 401 funds in order, possibly moving them to more stable funds I’m figuring to go by end of September to avoid last minute slowdowns for the company to screw me over again. I’d rather leave enough time to have everything drop in 2021 vs 3 extra months of paychecks.

To: Post ID: @hlq+18D9CFnM

"Your lump will be calculated based on the date the check is cut. That date can be up to 60 days after your last paid day on the payroll. My rollover hit my IRA on the 59th day after I left. Day 60 was the weekend."

Are you 65? I'm pretty sure if you're 65, you have to start your pension right away. If you are under 65, you can wait until 65 (I was management, so possibly different, but I expect not).

To: Post ID: @fwv+18D9CFnM

So if you put in Dec 14, before the rates changed, but not due till Jan 1, does that mean you got the old or the new rate?

Actually, the Nov-2020 rates were out by Dec 14, but that's besides the point. I could have put in in August for 1-Jan-2021 and I would have received the 2021 rates as calculated by the Nov-2020 numbers.

I am the original poster and I appreciate all the replies!

It would not surprise me if bargained was different than non-bargained. T will clearly scr3w you over if they can!

I will call Fidelity, actually twice and make sure I get the same answers.

I can see a lot of us leaving, like Stinky wants, and a lot of people making costly mistakes.

100% wrong. It is on the official date your papers say you retired. If your scenario was true (it's not) the company could wait to cut the check if it saves them $$$$. And they would.
I retired with a projected amount on December 30.
The check I got on Jan 16 (the rates had changed and not in my favor) was to the penny my projection.
Again, you are totally wrong.
I was top craft, might be different for managers.
If so, enjoy your title.

14 hours ago by Anonymous | no reactions

Sorry you’re wrong.

My last paid day was october 5th. They cut my lump pension check on Dec 4th. It was calculated based on its value dec 4th. You are totally wrong. They can’t calculate on one date and keep the interest off that money for 60 days without you getting the interest.

Call fidelity to get more information. I was laid off in July and spoke with fidelity later this year. At the time, he did a lump sum calculation and it would be valid for a number of days, I forget how many, 60 maybe. If by some weird chance the rates went up causing a lower lump sum to be paid out on Jan 1, he said I could use that calculated amount based on the 2019 rates. Again, just call fidelity and they can confirm if that is indeed how it would work.

"Your lump will be calculated based on the date the check is cut. That date can be up to 60 days after your last paid day on the payroll. My rollover hit my IRA on the 59th day after I left. Day 60 was the weekend."

100% wrong. It is on the official date your papers say you retired. If your scenario was true (it's not) the company could wait to cut the check if it saves them $$$$. And they would.
I retired with a projected amount on December 30.
The check I got on Jan 16 (the rates had changed and not in my favor) was to the penny my projection.
Again, you are totally wrong.
I was top craft, might be different for managers.
If so, enjoy your title.

To @uvz...”My department is gone in March 2021. Will my lumpsum be calculated using NOV 2020 rates or whatever the GAT rate is in March 2021?”

Your lump sum is calculated based on November 2020 rates for benefit commencement prior to Jan. 1, 2022. Assuming you retire in 2021, a lump sum benefit payable after Dec. 31, 2021 will be based on Nov. 2021 rates.

My department is gone in March 2021. Will my lumpsum be calculated using NOV 2020 rates or whatever the GAT rate is in March 2021?

Your lump will be calculated based on the date the check is cut. That date can be up to 60 days after your last paid day on the payroll. My rollover hit my IRA on the 59th day after I left. Day 60 was the weekend.

"I put in for my lump sum pension on Dec 14 for a Jan 1 collection and it was processed / is now showing due on Jan 1...but as they say, your mileage may vary. "

So if you put in Dec 14, before the rates changed, but not due till Jan 1, does that mean you got the old or the new rate?

I retired in Oct 2019. Have not yet collected my lump Doeam collecting it by end of Sept or Oct 1 next year (2021) . It does take 60 days to arrive in your rollover IRA. I know I can leave it there in 2022 since the rates will not change at the end of 2021 but I don't want to be greedy.

I recommend going in the middle of the month to ensure medical coverage thru the end of the month, and it give you time to do your open enrollment. The money doesn't matter.

I put in for my lump sum pension on Dec 14 for a Jan 1 collection and it was processed / is now showing due on Jan 1...but as they say, your mileage may vary.

Follow the interest rates through the year. If they stay low, it may not matter collecting 2021 vs 2022. It likely will though. You can only collect the lump sum on the 1st of the month, so without question, November 30 is too late and Oct 29 might be too late also. If the extra bump in year difference is worth it, I'd go out end of Sept or even Aug to make sure it happens. I believe they say it takes 60 days to process, and AT&T has to tell Fidelity that you're no longer working.