Thread regarding AT&T layoffs

Will the recent email about pension changes have any affect on the 1/1/2021 calculation? I was off the force retired in 2020 and planning on taking the new higher payout lump January 1st. For some reason I'm concerned the number they calculated will be wrong. I was told it's just an estimate and they do a final calculation but you have to sign off on it anyway to get to that point.

Yes Federally back but 80 cents on a dollar or lower.

I ran a calculation for pension at a future date and got the following message: Sorry your pension estimate is not available online. Please Contact Us to submit your request.

Inflation is a factor with the lump sum as well as the annuity.

Not at 100%. Ask the Teamsters about that.

It might be a better idea to ask the PBGC about that.
Here's the information: https://www.pbgc.gov/wr/benefits/guaranteed-benefits/maximum-guarantee

Let's see.

For 2019, T contributed $0 to the L-T plan.

In 2018, T contributed $9,3 billion.

What do you expect T to contribute in the future when T has to borrow to pay the dividend?

The only person is assured of collecting his pension is Ratty who f*cked the whole company up!

Fidelity has not yet updated their calculations or rates. I expect this to happen in a few days.

"Pensions are federally guaranteed by the PBGC. Enough with the misinformation and scare tactics."

Not at 100%. Ask the Teamsters about that.
Take the lump sum.
Cut all ties with T. Walk away.
They can't run a business, yet you are going to trust them with high 6 figures of YOUR $$$??
Foolish.

@uhr Did you factor in inflation?

Yes, my model covers all bases. Including maximizing SS by taking at 70 (which is COLA protected). Also as I mentioned, the plan takes a partial Lump which gets added to the 401K, IRA money.

Even though the pension is not COLA protected, the idea is to have a safe income to hedge longevity risk.

You can also take the lump and purchase an Annuity, however it pays out less over same period.

Either way, I found it best to have 3 income streams, Annuity, SS, and Savings.

Lump sum. All day, every day. Let that money work for you. Don't be a dummy.

@uhr Did you factor in inflation? Without a COLA and looking out 20 years the purchasing power of that annuity will have lost about 50% at 3.5% inflation rate. Inflation can be obscure but must be factored in our retirement plan when considering the annuity.

The new rates make mine 7.9% higher. I’m still looking at all possibilities including monthly annuity, which main knock is no cost of living increase. While it is sufficient now with SS and other savings, a inflation calculator I ran would make it worth around 50% of present value in 25 yrs.

Hopefully the lump would continue to grow, but not sure now with the way our country is headed with massive national debt, and upcoming admin that will slow the economy down with its policies

let's hope T does not bankrupt 9

Does the Fidelity calculator reflect these new rates yet?

When can yo take out your pension? Is it only when you leave the company?

If your pension plan allows you to take a partial lump sum, that's the way to go, mitigate risk.
As pointed out previously, the pension is back by the PPGC. While still a risk, it's les risk than anything else.

I modeled a 20 year retirement plan using a complex spreadsheet using the previous 20 year returns of a 50/50 stock/bond portfolio that added SS benefits, all projected debts, and taxes (as we know them). While the lump sum balance ended up slightly above the pension annuity, after 20 years the annuity portfolio balance was catching up (meaning there was almost the same portfolio to leave to heirs) . Bottom line a 8% -10% bump does not make up for longevity risk.

Granted I used a pretty bad retirement start year (2000) to model this but I think that's the least risky way to predict the future.

If you don't have the partial lump sum option, I also modeled taking the full pension. I have to say that one will get you to 150 years old! If you live that long you probably will have to leave you estate to your great great grand children. :)

what are the odds that AT&T still exists as a company to pay out an annuity that far down the road?

Pensions are federally guaranteed by the PBGC. Enough with the misinformation and scare tactics.

Calculations for lump sums taken any time during 2021 are based on the November 2020 segment rates.

will 2021 be based on Nov 2020 lump sum rates or do we need to wait for dec 2020 rates to be published for 2021?