Is your lump sum amount calculated on the date that you request it, or the date that it is officially processed? TIA for the info!
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For management, Fidelity processes lump sum requests on the 1st of each month so if you want to ensure that you get this years composite corporate bond rates you will need to retire and request your pension (Paperwork needs to be received and accepted) prior to 11/30. Otherwise, it will be based on next years rates. My recommendation is to leave middle of November at the latest. I requested mine in Jan and received it mid March so it can take 6-8 weeks. Remember, the lump sum needs to go into an IRA or your 401K or it will be taxed as normal income based on the whole amount. I had a positive experience and wish everyone else the same.
From: https://workplaceservices.fidelity.com/mybenefits/pensionservices/navigation/db/ore/howtocollect
Last Day of Work
Some plans may require you to begin the process of collecting your benefits 90 – 180 days in advance, so choose a last day of work with that in mind. Once you have chosen it, be sure to notify your employer also.
Is it 90 or 180 days for the L-T plan?!?!?!
Always take the lump sum, if a company is to file bankruptcy they have the ability to take your pension and any contributions they gave to your 401k. Take it and run. Also, even if you take a annuity through the AT&T retirement plan (bad idea) that can be taken back. Do some investigation because it is factual. Nice to know where you stand no matter what.... Take it, roll it out of that plan and RUN to the HILLS with your LUMP SUMS.
"The lump sum is determined on the day you collect it on the FIdelity site. "
Based on what I know, it's the day that you go to the Fidelity site and choose Collect. Not when Fidelity processes it. Should you change your mind, you can reverse the collection within 3 days of collecting it. I did this in 2019 and am very glad I didn't collect it then.
https://workplaceservices.fidelity.com/mybenefits/pensionservices/navigation/db/ore/howtocollect
"The lump sum is determined on the day you collect it on the FIdelity site. "
Can you please clarify this? The day you collect it means what? The day you go to the Fidelity site and "request" your lump sum? Or the day Fidelity actually "processes" your request? These two events could be weeks apart and the latter could be in 2022 which would use this coming Nov rates.
If you wait until November and the new interest factors are even lower you could elect to commence your benefit in 2022 but highly unlikely that they would be lower or by any significant amount to have you wait. The pre Medicare benefits eligibility is based on your last day on payroll. I plan to leave by 12/1 to allow time for correcting any paperwork etc.
Too add.
Even though I had Direct Deposit, they sent a check, yes a check, to my home in the mid/high 6 figures as my pension payout.
I thought it was just a stub and almost tossed it.
Same for my VACA pay, 401K and miscellaneous other smaller stuff.
Yup, they sent this by non registered, non certified USPS.
Do not give them the opportunity to mess up. They will.
IMO, it's intentional.
The lump sum is determined on the day you collect it on the FIdelity site. You can see the value on their site. I retired in Oct 2019. Got 2 good bumps last 2 years due to reduced bond rates. Grabbing my sum by Oct 1 or Oct 16. Avg turnaround time is 6-8 weeks.
I told my boss to get my papers on Oct 3. Signed Oct 6th. Bye.
I didn't trust them not to screw things up.
They didn't, but had they I had plenty of time to fix it.
Why wait?
That extra month working won't matter.
Enjoy!!!
I’m leaving end of 3Q to make sure nothing falls thru the cracks and affects my numbers.
Your last day on payroll can be no later than 12/30 with your first day of retirement 12/31 to get the 2021 rates. I’m leaving by 11/15.
Same question here so I called Fidelity twice on different days and got two diff–ents and two different answers!
So I asked a 3rd level and he said the answer he got from HR was to retire before November 30thir risk HR not being able to process you paperwork and the rates may change! You see, you MUST have everything checked off the list or youare scr3wed. Things like: is your laptop inventoried as returned at the depot, is your badge returned, is all you forms returned notoried properly and returned by snail mail.
Some folks I know are retiring as of end of October for these reasons!
OP here - I will be leaving EOY and I am trying to plan what date I would need to retire/request the lump sum if I want to use the current rates. In November when the new rates are posted I will obviously want to get my lump sum based on the current rates. So if I retire as close to year end as possible and request lump sum on 12/31/21 will they I get the current rates because i requested the lump sum by last day of 2021? Or do I need to request the lump sum prior to that so that the request is fully processed (check is cut) by the last day of 2021?
I plan to call Fidelity for this info but was wondering if anyone who has already retired can shed some light.
The amount should not vary much as your lump sum is based on November’s unblended segment rates which remain in effect for the entire year