If I get surplussed can I retire and still get severance and my retirement benefits?
I'm 57 and have 25 years.
Not sure what to do??? Rumor has it they may cut retiree benefits in 2023 anyway so if that's true no point in leaving since I'll just be taking my lump sum anyway???
If you get offered a surplus package, FLY out the door. I've had the misfortune of working for two companies in rapidly maturing markets. Once it starts to mature it doesn't die going down a gentle slope, its a double black diamond ski run. Their core wireless and wireline businesses will be like the phone calling card business in a couple years. DTV is already dead and HBO Max not far behind.
" I called the benefit center and was told I met the modified rule of 75,but no pre-65 medical subsidy. Please advise"
What are you confused about? Pretty straightforward. You stand to lose nothing if you stay into 2022 (in terms of pre-65 healthcare subsidy). You may, however, be a prime target if they do any layoffs this year, as they won't be laying off those that ARE eligible for that pre 65 healthcare subsidy.
I called the benefit center and was told I met the modified rule of 75,but no pre-65 medical subsidy. Please advise.
What guarantee is there that if you leave before 1/1/2022 you will continue to receive pre-65 medical subsidy until you are Medicare eligible? They just decreased the life insurance amount for current retirees. As far as I know, they can take away whatever they want in the future.
"The only counter argument to the mass of people leaving is that not that many people left last year for the medicare supplement"
Apples and oranges comparison really. There is a lot more money on the table for folks in the affected group this year (those that stand to lose pre 65 healthcare subsidy unless they leave this year). Someone that may have some health issues and no other solution for somewhat affordable healthcare insurance for themselves and/ or their families may not have much of a choice. Which is what the company is banking on. I would bet that up to 50% in the affected group will opt to leave this year. (I am in the affected group, but I am staying).
If you get surplussed, you ARE essentially retiring if you have met MR75. You're just being forced into it.
As others have mentioned, it's really just a personal choice.
The company is banking on many in their 50's (like me) leaving voluntarily this year to maintain their pre-65 healthcare insurance subsidy (not all are eligible for that, depends on legacy company and hire date, check your YTR). If you are in this group, you can bet you will not be laid off in 2021. They aren't going to put themselves on the hook for the subsidy and a severance by laying you off. That said, you may move to the prime target list on Jan 1 2022.
The only counter argument to the mass of people leaving is that not that many people left last year for the medicare supplement. We lost 1% where a normal surplus is 5%. Now, you are looking at folks say 55-65 and assuming they have enough saved to move into retirement. The average retirement savings at 55 is between $100k and $200k which won't last very long. I expect to see a 3%-5% of the people leaving by end of the year. Those that are not able to retire then they know that getting a job at that age, making the same salary, and benefits is slim to none.
You can retire any time you want.
Severance is only paid if you get laid off (surplused), even if voluntary. You are still eligible for retirement benefits if you meet the modified rule of 75 and are laid off, even if you choose to be laid off.
As others have pointed out, many departments don't plan to surplus many managers this year.
They won't surplus anyone who is going to leave to keep retirement insurance as they won't want to pay surplus $.
Short answer is yes. You can take the severance and if you are retirement eligible you can contact Fidelity and decide when and how to take your 401K or Pension, whichever applies. In terms of retiree benefits that is not a one size fits all. It depends on multiple factors such as which company you were hired under, whether you are non-management or management, etc. There is an AT&T Retiree Group Facebook page that can answer many of your questions.
Yes.
There is a thread about this (whether to stay or go) below with a lot of replies. Some people are staying, and some are planning to leave. There is no one right answer; it really depends on your personal situation and multiple factors.
Yeah but they are probably not surplussing people this year. They are counting on a lot of people leaving on their own. And that is a safe bet.