Did the interest rate hike in Dec has any impact on the lump sum calculation ?
14 replies (most recent on top)
Yes it does. My lump sum just got reduced by 10k with last rate hike. Left VZ recently. Should have left months ago.
If you are considering taking a lump sum and were separated, you can elect when to take it. That's only beneficial if rates go down. VERIFY with vz bens. Things could change if the company messes with the lump sum. If the fund goes below 80% then I think they can only do 50% lump and rest as annuity. Always kept me up at night worrying about what VZ could pull. But we all have worried about that for years and it never happened. Companies love to cut the ties with you since then they don't have to contribute to the pbgc insurance fund. But check it out for yourself. Stuff on the Internet is great sometimes but not always accurate ( we all know that ). Also my experience with vz bens is two calls for the same question might provide two different answers. The knowledge level in the call center is sometimes not the same. Or the person may interpret your question different.
I posted the info regarding pbgc. Was salary but don't think it would be different for others. You can see the "winning" rate on your estimate my pension..lump sum. Mine used pbgc as lowest. Maybe different for union? Not sure but you will know when you use the vz benefits website. It's the calculation based on your annuity and expected life span. Starts going down as you get older because they calculate that you will live only so long. So the closer you get to the expected life span, the less you get on a lump sum. I left because the rates were going up and the culture at work was degrading. Tough decision would have liked a vsip so that someone else could stay. Tired of seeing good people hurt ... still am ...tough to see what's happened to the company.
agreed xms you are an idiot
@FcoiRsE-xms Thanks for showing everybody what a complete idiot you are. How do you manage to find your way home after work each day?
The rates have a huge impact. There is a difference of $40k between my lump sum now, and back in June.
Thanks for all the info provided.
Are you talking about union or management and what area are you in.
To clarify. The Dec 15 rate will be used by VZ on Jan 1. That rate will be used for the third month of your three month projection. The current third month of your projection was based on the Nov 15 rate. That all changes on the first of every month.
Hope I'm not confusing anyone. I used the rates to make my leap out earlier this year. Miss the people not the BS that's being heaped on everyone now. Good luck.
Hope
The PBGC publishes lump sum rates on the 15th of the month
Verizon uses those for the lump sum rates. The rate srated at 1.25 on Dec 15. That will be used for the third month of your VZ projected lump sum
The published rates are a good way to see what's down the road. They have held at 1.25 for the past several months. Likely to see a hike on January 15. But you still have two months at 1.25 before any possible increase gets official by VZ on Feb 1. Again, the first two months of your three month projection will stay at 1.25 even after/if the rates go up.
yes in the answer to your question, how about stupid answers to good questions, fcoirse-xms you did not understand his question it has nothing to do with his pay check. maybe your are the stupid people who thinks he knows what he is talking about but has no clue.
Lighten up "Frances"!
With the interest rate hike the PBGC rate goes up. The PBGC rate increase will reduce the lump sum payout. Below is the website for the rate. The lower the PBGC the higher the lump sum. This is how I understand it.
http://www.pbgc.gov/prac/interest/monthly.html
No. Have interest rate changes ever impacted your paycheck in the past?
There is no such thing as stupid questions. Just stupid people that ask questions.