Is anyone familiar with the MR 75 penalties?
A few years ago i read something in the pension that u can be MR 75 eligible but could be penalized .5% a month if u dont have 30 years of service and under age of 55.
Ex: 53 years old an 22 years of sevice, you pay .5% a month X 24 months (number of months till 55) = 12% reduction pension.
Im wandering if this is correct and does it apply if u collect at 53 or can u defer to collect till 55 and not pay the penalty
A few years ago i read something in the pension that u can be MR 75 eligible but could be penalized .5% a month if u dont have 30 years of service and under age of 55.
It's just the percentage penalty.
Fidelity told me the numbers the website gives you based on the dates you enter takes into account the penalty
I believe what you are referring to is actually when they come to your house at night and take away your Christmas and birthday presents.
You should go to your Benefits page and read the plan documentation.
MR 75?
Bless your heart!
The Facebook Retirement Planning Club is a good resource. Please note that there are many different kinds of pensions, so there's no universal answer to the question. You need to know which pension plan you have and look at the SPD.
Why don't you call fidelity. I can't believe you don't know how this works.
“ So, if you are 50, with 25 years, while you meet the MR 75, you will be penalized approx 15% due to not being 55.”
In this example if u wait to pulley money till 55, does the penalty go away?
Stank targeted cuts those very close to MR75. Thus cheating thousands of older employees from full pension. In a fair AND JUST ERISA world gov and PRIVATE SECTOR EMPLOYEES would be PROTECTED FROM IMMORAL INCOMPETENT GREEDY SOCIOPATHS LIKE $TANK. Some employees were outsourced and other were cut within 1 -2 years of FULL PENSION. Those that would think about age discrimination lawsuit would NOT GET SEVERANCE
GOT IMMORAL AGE DISCRIMINATION ? Everyone in this group, should have received full pension or may 98%...........NOT 50% BECAUSE STANKEY IS A HISTORICAL CORPORATE FU
MR 75 means nothing for Management anymore.
Yes, quarter percent until 55 is correct. Very easy to see that reflected if you estimate pension. It actually starts going down after 55.
The main lady who runs the FB page is waiting on her 55 before taking the lump sum. Believe she has maybe another year or so. She left a couple of years ago.
The original "Rule of 75" is if age + service = 75 you are qualified, no penalties ...
Way too many people were qualifying in their late 40's or early 50's and taking the full retirement they had earned, so they modified it.
(another ben dover kiss that CWA allowed)
Now we have Modified rule of 75
No penalty at MR85
As I understand it, it's a quarter percent, per month, below age 55. That is separate from your MR 75.
So, if you are 50, with 25 years, while you meet the MR 75, you will be penalized approx 15% due to not being 55.
If you're not 55, what good does it do to hold out till you are? Other than phone discounts, what do we (management) still get?
You have to meet both:
In your example: Ex: 53 years old an 22 years of service, you need 2 years to hit the 55/20 and you are ok on the 22 yrs.
Say you are 57 with 19 years of service you will need 1 more year to hit the 20 years of service. The 55/20 one below
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
Like mentioned before get into this Facebook group. The lady that runs it really knows her stuff pertaining to AT&T retirements. AT&T retirement planning club
MR75 went away a couple years back.
22 YEARS & AGE 53 does not qualify for MR 75.
YOS. AGE
Both YOS & AGE requirements are minimums & both must be met. You will be eligible for MR 75 when you are 55. Per your original question, there is a penalty for taking pension prior to 55. Check out ADVANCE CAPITAL MANAGEMENT for a very informative ATT retirement guide.
It’s correct if you have a legacy SBC pension.
However, speak with a fiduciary or fidelity to see if it still might be best to take your pension lump sum and invest it. It might be more than penalty if you decided to wait until age 55. You can do pension estimates to see the difference month to month, year to year.
There is an AT&T retirement facebook group that has a lot of great information on this topic.