Can anyone confirm the rumor that the the Management Lump Sum Pension option will be ending at the end of 2022.
19 replies (most recent on top)
"I plan on leaving around Dec. 20th this year. Taking the lump sum."
If you plan on taking the lump sum using the Nov 2020 rates you need to leave in November and request pension Dec 1. They only process on the 1st of each month so if you leave in Dec, you lump sum will get a Jan 1, 2022 date and they will use the November 2021 rates!
It will not end. AT&T will continue to take care of you for you hard work.
" so I'll enjoy a nice $1500.00 a month cost for Healthcare until I'm 65...lovely."
If healthcare is a major concern (and I understand that for most, it is)...what's your confidence level that T will honor their commitment and pay that subsidy until you're 65? Especially given that, you know, they just in fact reneged on that commitment to thousands of workers with this "retire or else" ultimatum? I give it 5 years absolute max. That may be enough for some. But those in their early 50's shouldn't be fooled thinking they'll have no healthcare insurance worries until Medicare. They WILL pull the rug on you. Just a question of when.
I plan on leaving around Dec. 20th this year. Taking the lump sum. If I leave I get $749 healthcare subsidy from ATT until I'm 65 plus I can put the lump sum with a financial advisor who says she can more then double it but I should work until I'm 67 for full ssn.
I don't trust ATT so I'm taking the money and running. I also heard they could cancel Health care for ALL retires in 2023 when they renew the contracts???
I don't feel good about leaving but feel its a no brainer but still a gamble. I'll start looking for a new job in October.
Not as long as it benefits ATT
I'm taking the Full Lump Sum in October of this year, 2021. Flipping it into my IRA and going to enjoy my life. AT&T wants out of the pension business for sure. They may eventually force employees to transfer their current pensions into the 401K plans for active employees. I missed the Subsidized Healthcare by 1.5 years....so I'll enjoy a nice $1500.00 a month cost for Healthcare until I'm 65...lovely.
As others have pointed out, the company wants you to take the lump sum. It removes liabilities and market risk from T and shifts those into the retirees.
It's an excellent deal, for T.
The misinformation on this board is awful. If you have actual proof of this, please provide a reference.
- Lump sum payouts remove you from the pool of pension obligations which is beneficial to the company.
- Interest rates will go up reducing the amount of the lump sum payment in the coming years which is beneficial to the company
- The recent pension changes due to kick in in 2022 reduce pension liabilities by contributing less and reducing your annuity which is beneficial to the company
- If they terminate the pension entirely the insurance company buying our pension fund will provide a lumpsum
I wouldn't put it past leadership. When announced there would be a flood leaving. Then they outsource the annuity pension just like they've outsourced jobs and entire organizations. Retiree passes and vast majority of annuity stream goes away... outsourced company takes the risks and expense.
Before I worked at AT&T, the company had a pension with NO lump sum option. However in the last five years they have offered a lump sum to get as many off the books as possible (I took the last one and rolled it into 401K rollover). I doubt AT&T would stop the lump sum as they would like to get rid of the expense of administering them ( Have 2 pensions with AT&T and both have lump sum options) and meeting financial requirements of coverage. Not a rumor I have heard anyway
No. Because it’s a ‘rumor’ you just started.
I heard a rumor that this board is dropping ATT due to constant misinformation, personal attacks aimed at managerial staff and leadership, false ‘stories’ but virtually nothing is being posted about layoffs. Rumor has it….
This happened several years ago, where retirees were able to take a max of 1/2 the lump sum with the rest to be a monthly annuity over (I believe) 10 years. I don't know when it reverted back to a full lump sum payout.
Hard to believe but entirely possible.
If they do it that will be done strictly to get a whole another group of people off the books - the ones that are too young to worry about Medicare and have 32 years service at age 52 but this will get them out as keeping that money in your estate rather than die and its gone is preferable to any annuity. What sucks is if they wait until 2022 to announce it noy giving those people the opportunity to get out with the medical stipend too.
If true, it's definitely time to leave.
Confirmed. The t is out of the pension, health care, 401 savings & any and all concession plans.
This will net in an approximate $7.2B annual savings that will prop up the bottom line.
Don't put it past the Stink to do everything he can to F * C K over every US based employee possible.
I haven't heard that at all, and it sounds made up. Everything I have read indicates the lump sum is favorable to the corporation, getting those obligations off the books for them. I'm not sure how it benefits them to just stop offering a lump. Now, they could decide to get out of the pension game all together and sell it off to an insurance company or something...
If it does, I'll be on my way in 2022...