In hindsight, the 11/21 pension segment rates didn’t increase dramatically from the 11/20 rates, thus the lump sum drop had to be less than 5%. However I’m anticipating a lot more departures in 2022 if the rates increase by 11/22 and lump sums drop by 15% (say $100,000). The Company won’t need to do anything to get us to jump ship. The decrease in our lump sum pension will force our hand.
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Pretty sure lump is off nov 2020 and next year will be off nov 2021 after 1st of year
“For most the new year 2022 vacation pay will offset the minor drop in lump sum payout”
I’m speculating here but he or she probably means getting your paid vacation for 2022 vacation will offset any drop in the lump sum from 2021 for most.
Yes it's called Government math ... they sc--w me out of pension money ... no biggie, I will make it up with vacation money ... that they already owed me anyway.
“For most the new year 2022 vacation pay will offset the minor drop in lump sum payout”
I’m speculating here but he or she probably means getting your paid vacation for 2022 vacation will offset any drop in the lump sum from 2021 for most
Get it while the gettins good.
Previous poster: What new 2022 VAC pay/policy are you referring to?
For most the new year 2022 vacation pay will offset the minor drop in lump sum payout
If October segment rates were used as opposed to November’s my lump would have dropped 26K fortunately the second rate dropped for November, (as the previous poster stated is the most significant rate as far as I’m concerned) boosting it back up. Legacy T craft 41 years
The only segment rate that really matters is the 2nd one. While the 1st rate went up significantly it had little impact on my lump sum scenarios. Neither did the 3rd segment. I was able to isolate each of the 3 segment rates and the 2nd represented 90% of my lump sum drop. 1st and 3rd segments only minimally impacted it.
Well the first segment rate IS double last years at ...1.02%
then 2.72%
then 3rd 3.08%
so not like it's a fantasy or anything. One can pretty easily guess they will continue to climb.
@wge - waaah... Are you/your wife or HR accountable for your own financial decisions? Own it, brother! You are not a victim, but you are pitiful.
It is indeed correct to consider ANYTHING Toxic T HR says as less than truthful.
They really did a number on my wife when she was layed off a couple years ago. Toxic T HR kept repeating back then that is was in the "best interests" in the wackees to take their lump sums before the three segment rates changes in November. So the wife took her lump instead of waiting for November's rate change.
Then when November rolled around, the three segment rates dropped significantly, and in turn the lump would have gone up. So she got S C R E W E D listening to HR advise.
Remember, if their lips are moving, they are lying.
"...failure to act will have profound effect on pension was just a bunch of HR hype to meet their annual force reduction goals"
Spot on. In fact, a few years back when there was an MVO offered to our very large organization, this was a part of the "script" that the VP read to us on the call announcing the MVO (which, like all of the more recent MVO's, really offered no incentive for a manager to leave- no enhanced severance, no pension kicker, nada). The VP strongly urged the target audience to consider the fact that interest rates were likely to rise, thus adversely affecting their lump sums if they stayed. Funny thing is, per usual, they completely got that wrong and the interest rates did not rise but in fact continued to drop.
Today, it does seem that rising interest rates are more likely. One thing to keep in mind is to be aware of the pension calculation used for your particular SPD and legacy company plan. THEY ARE NOT ALL CALCULATED THE SAME. You can model this on the Fidelity site. Some, like me, do not see a terribly significant change in the lump sum with a rise in interest rates. Others will see a more significant impact.
Ever consider that all the communications about segment rates changes and that failure to act will have profound effect on pension was just a bunch of HR hype to meet their annual force reduction goals?
That is a goal.