Anyone go to MIT that can explain what this pension email that came out is about?
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The one thing you can take to bank is, these Duke changes are NEVER for our benefit.
They have discovered a new formula. No need to give severance packages to get people to leave early. The new formula is to keep take things away and make it as comfortable as possible forcing people to quit on their own. Especially the legacy person who’s been loyal to the company for the most years.
You can also take to the bank that none of these rule change will ever effect the elite brass. Only the mid line working folk.
In simple man's terms....We're sc****ing you...
$137,500 is the 2020 limit of your income to be taxed by Social Security, so in effect, if you make above that amount, you will not receive SS benefits on the income above the limit. The supplemental boost makes up for that difference.
See https://www.ssa.gov/benefits/retirement/planner/maxtax.html for info on limits
Thank you so much for the details!
Have a question on this line...
(150k-137,700)*10% = $1230 in supplemental pay credits.
What is the 137,700 figure? How did you arrive at this number?
"Mike is out $5361. Mike is sad
Mike realizes he is also losing 4% compounded until he retires on that sum for 10 years. Mike is mad. Mike just lost 1/3 of his pension potentially"
To: Mike
From: HR
Thanks for all you do! Happy Holidays! Take some time to reset and recharge, and then be sure to go and F yourself! We don't care about our promises to you! We encourage you to GTFO if you're unhappy about this in any way, and save us from having to lay you off anyway!
Warmest Regards!
The analysis below is for legacy T management hired before 1997. If you did receive an email mentioning the terms used, you may be impacted. Otherwise you are not, but may have different changes
Post ID: @1izj+18qccVS5 Please see
- I don't see 4% interest credit, may be something less than 4K
- I am Pacific Bell/SBC – I don't see 10% in pay credits. There have been no pay credits since 2005.
Am I missing something?
Legacy T: say Mike is 55, makes $150k and has $200k in his pension. Mike currently gets:
200k*4% in interest credits=$8k
150k*10% in pay credits= $15k
(150k-137,700)*10% = $1230 in supplemental pay credits.
Mike is happy!
Now Mike gets:
200k*4% in interest credits=$8k
150k*7% in pay credits = $10.5k
(150k-137,700)*3%= $369
Mike is out $5361. Mike is sad
Mike realizes he is also losing 4% compounded until he retires on that sum for 10 years. Mike is mad.
Mike just lost 1/3 of his pension potentially
If your pension benefit is calculated using CAM, then it will actually be 37.5% lower for any amounts added to your pension after January 2022. CAM (Career Average Minimum) formula is currently at 1.6% and will be reduced to 1% Starting in Jan. 2022. For instance if your pension currently increases by $24,500 per year for lump sum payments, beginning in 2022 it will only increase by $15,500 per year. i.e. 37.5%. This could have a huge impact to your retirement lump sum payment over a ten year period. ($90K). So basically for every 2.5 years worked you will lose the equivalent of the current 1 years worth of lump sum payment into your pension. Big win for the company, big loss for the employee.
I think @OP+18qccVS5 was asking about todays "Updates to your retirement benefits" pension email.
Basically it states that in 2022, any pension earned starting in 2022 and on will be about 25% less that what is earned in 2020-2021.
I'm sure we will get more news next year
The pension email was sent to selected employees whose legacy company included health care benefits if you retired from AT&T before age of 65. You qualify for those benefits if you met rule of 75.
Essentially you got a cheaper monthly rate as a retired AT&T employee pre Medicare. Say goodbye to those cheaper rates after 1/1/2022 if you are still on payroll then and leave pre Medicare.
Your monthly costs easily go up about 1000-2000 a month depending on level of coverage (silver/bronze/gold) and whether coverage is for you or you + spouse or you and family.
It is a way to force those older employee to leave the company next year.
This is similar to taking post Medicare supplement away if you retire starting
1/1/2021.
the email was worthless but i am expecting those who hit major milestones like 25 years after 2022 will not see the large increase they hoped for. Oh well, just $400,000 or so out the window.