Some people still think that the Modified Rule of 75 applies to subsidized AT&T Medical from retirement until you’re 65 years old. That all ended 12/31/2021. I missed by 14 days. Sigh.
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The Pension jumps dramatically when you hit your MR75 - My lump sum increased by 80% when I hit the MR75 vs the number right before I became eligible.
This is not true for all T pension plans. All T pension plans are NOT the same
Does retiring with modified rule of 75 provide you with anything other than just leaving company? It is our interpretation if you only have a cash balance pension you get that amount whenever you leave if you are fully vested. Also, retiree medical benefits are no longer valid if you retire after 2021.
Read your AT&T Savings Plan documentation. It varies per group. Watch if you are under 55 as they deduct a percentage from your pension for not being 55 or older. Even with the deduction leaving was better than staying. Retiree subsidized healthcare benefits dropped 12/31/21 if you didn't leave by then, hopefully you didn't miss the boat. interview a number of certified financial planners and get their take on what your plan is. Check out Heritage Wealth Planning for advice on managing your transition.
It is most definitely not a meaningless milestone even without retiree benefits, and if people stick around it is likely because they are less than 2-3 years now from hitting it. My lump sum went up automatically by nearly 400K the day I hit my eligibility. Now, due to the segment rate increases the jump may be less now but would still be significant.
That was a significant part of the importance, but even then most people had to have started by 1997 or 1998 to get that benefit. That benefit offering was pulled from new hires long before the pension. The Pension jumps dramatically when you hit your MR75 - My lump sum increased by 80% when I hit the MR75 vs the number right before I became eligible. The annuity option is dramatic as well. You can plug in the dates into the Fidelity tool and see the difference in action if you are not yet eligible, and the dates for when you would be.
Correct me if I am wrong, but for management, the primary benefit of meeting the Modified Rule of 75 was to be eligible for retiree medical subsidy benefits.
But wasn’t that eligibility discontinued at the end of 2021? If you were still on the payroll after 2021, that benefit was discontinued?
There is no rule of 75. There is a "modified" rule of 75.
Age and service must equal 75, and you must be a minimum of 50 years old with one exception — you qualify for retiree benefits when you have 30 years of net credited service at any age.
- 50 years old with 25 years of service
- 55 years old with 20 years of service
- 65 years old with 10 years of service
- or any age with 30 years of service
For a non-bargained for (management) person, it's essentially a meaningless milestone at this point. Retiree "benefits" are a joke.
Every three years the amount of cash the CEO extracts from the shareholders is $75M. CEOs collected about $300M since TMobile fiasco to cost shareholders hundreds of billions.
The rule of 75 is not just a sum of your age plus years worked. In order to meet that rule it has to be in increments of 5 years.
For example: if you are 53 years old and 22 years of service, that adds up to 75. However, in this example you would not meet it until your years worked is 25 years. The minimum of both is what matters. If you are age 50 and 25 years of service then that will qualify you.
You can read the details in HR Onestop and search on MR75.
Hope this helped.
Age plus years of service when they equal 75 is Rule of 75 and is used to measure your eligibility to retire. Just because they equal 75 does not mean you are eligible. There is defined combinations of the two that must be met to qualify. Search HR OneStop for the exact combos of the two that must be met.
I've seen it mentioned several times.