Whose leaving based on the possibility of pension dropping 15-30%?
22 replies (most recent on top)
Not me. Where else can I get paid to sleep at home for 6 hours a day.
I'm rolling my lump sum + 401k into an ira which will be used for 10yr T-Bills at hopefully 4% or higher.
No. I just plan to drop my productivity 15 to 30 percent.
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@iyt+1iVSH0c0 said —Even those that are impacted POSTIVELY with rising interest rates (yes, there are some flavors of pension for which this is the case, such as the Mobility Program, check your SPD's on how cash balance is calculated).
I have not run the calculator. If you did, can you provide some insight on what you observed about rising rates and the Mobility Plan?
"They could have done a better job of letting people know that is not the case for all programs"
They're clearly using this as bait to get folks to leave, which of course may be advisable for some. And if some misinformed folks are under the impression they will also lose a lot of money unless they leave, oh well.
It clearly directed people to find the appropriate rates and go run the estimator.
If someone doesn't do that and quits because of a vaguely worded sentence in an email, it's on them.
This is a trick by Stankey and Santone to lure you into leaving. Do not fall for it. You are entitled to work here as long as you please. The downward pressure on your lump sum pension is temporary. After Biden is voted out in the next election, the lump sum will rebound, give it a couple of years don't fall for their rhetoric.
@1myh+1iUSH0c0. I can only speak to the Legacy SBC plan since that is what I am in but there are many options to take the annuity with survivor/step up features. I am married and if I take the annuity with the step up and survivor benefits should I die before my wife she would continue to receive the annuity (you need to decide if the survivor benefits will be at 100%, 75%, or 50%). With step up if I would outlive her the annuity would revert to the single life amount.
We are in our mid 50’s in good health and on statistical basis one of us had a decent chance to live into our 90’s. Of course if a couple takes the annuity and both die young the company makes out but the greater risk to most people would be to outlive your money.
My overall point would be that everyone’s situation is different so there is no one size fits all that is best for everyone. I encourage everyone to do your homework on your plan and find a competent advisor and make the best decision to you. I am leaning towards the annuity for us and this amount is not affected by interest rates. We do have kids but we also have significant assets outside our pension so our kids would make out well if we both had an early demise.
If you have 30+ years why are you staying ? If you take the montly annuity you cannot leave it to anyone YOUR MONEY goes back to the company when you pass on NOT to your husband / wife / kids - if you take the lump sum and roll it into another retirement account outside of the company you CAN designate beneficiaries - this is why it's important that you know all facets of what we are all facing right now
@iyt+1iVSH0c0 Thanks for confirming what I thought too. I was surprised to get a letter indicating mobility pension is hurt by rate increases
It's only a reduction to lump sum, not the monthly payments. Subject is misleading.
My lump sum will be 100k less. But I’m not making decisions based on a single variable when I have so many years still ahead of me.
As I’ve said in previous posts one of the most important variables factoring into your decision is your age. if you plan on staying 5+ years and in your late forty’s or early fifty’s waiting this out may be the prudent decisions
Sweeten the pot a bit. Retiring in this crazy economy doesn’t seem like the prudent thing to do. With inflation eating at my money and the beating some of us took in the 401k the time may not be right.
My lump sum will be 100k less. But I’m not making decisions based on a single variable when I have so many years still ahead of me.
Excellent move on T part. More that leave this year, will equal less layoffs next year.
Buyer beware. Please remember to read the fine print. Santone and HR are not your friend.
"They could have done a better job of letting people know that is not the case for all programs"
They're clearly using this as bait to get folks to leave, which of course may be advisable for some. And if some misinformed folks are under the impression they will also lose a lot of money unless they leave, oh well.
ME! It's over 30% for me.
@iyt+1iVSH0c0 I thought the same thing. They certainly try to imply that the higher interest rates are bad for any lump sum options.
They could have done a better job of letting people know that is not the case for all programs.
@iyt+1iVSH0c0 I thought the same thing. They certainly try to imply that the higher interest rates are bad for any lump sum options.
They could have done a better job of letting people know that is not the case for all programs.
The T way, treat every employee with inequity and disrespect. I hope they end up in court at some point. Might be hard to defend their outrageous policies with respect to equal treatment of employees.
I'll leave on my terms only. The current snapshot of high interest rates is just a blip on the radar screen. You do what is best for you, I'll do what's best for me.
Nice to know there is great disparity between all the pension plans! That's at&t and their equity process. Some get all, all get some!
It's interesting that the email goes out to everyone that has a pension impacted by interest rates.
Even those that are impacted POSTIVELY with rising interest rates (yes, there are some flavors of pension for which this is the case, such as the Mobility Program, check your SPD's on how cash balance is calculated).