has anyone else had an issue like this : I am retirement eligible and left the company for 1 year a long time ago. Came back and after 5 years all time minus the 1 year gone was bridged back. The issue I have is Fidelity is giving me a cash balance that I know is incorrect for the years of service I have. I spoke to some peers in same salary range and their numbers are way way more. I think the issue is the year I was gone but I can't get anyone in Fidelity to really investigate. Any info would be appreciated.
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Annual contributions will vary depending on the rules in place for your heritage and when you joined the plan. Here's what it is for Legacy T management that were participants in 2000 that have been grandfathered. Annual interest on the plan balance was around 4% over the years. Rules were changed at a later date and documents on Fidelity should show you your rules. It doesn't seem likely that bridging of service would bring someone back into an old pension plan.
Under Age 30 3.00%
30–34 3.50%
35–39 4.25%
40–44 5.00%
45–49 6.50%
50–54 8.00%
55 and Older 10.00%
@1qak, thanks for clearing up an old post I made two months back. I said I was getting 4% (interest) on the Pension every year, he stated his broker said it was more like 1%.....he was right, I failed to realize the 4% was a "contribution" to my Pension and not the percentage.
Only thing I don’t know is the calculation methods used for that contribution. I heard it was based on a long Treasury Bond....any insights?
My apologies to the poster I disputed! I wasn’t crazy, but I was definitely wrong!
In the end the cash balance should be around 4% of what you have made plus some. The contribution was 4%, and then it earned interest every year.
A = P (1 + r/n) ^ (nt) Use this formula for annual compounding. Use Pert for continuous compounding. I warned you Dorfman.
Dean Wormer.
not referring to 401 K - just pension cash balance. When I log into Fidelity I can't access the pension estimate - tells me I have to call and they do a manual calculation. I have tried numerous times to get that straightened out.
Cash balance pension records are kept by the “book keeper”, since the firm that keeps those records has changed you may only get the recent years contributions. This account is separate from a 401k and all contributions to it are based on the T-bill rate that year and also depends on the initial funds the company deposited when you were hired. Some regions/districts had more generous initial deposits, some had very low amounts. If you had the initial amount that was deposited you may be able to calculate with Pert. Balance =Principle times natural number “e” to the exponent of rate times time. Continuous compounding, please remember your college calculus. Maybe you were drunk that day Dorfman.
25,years SBC/Cingular non bargained for..,cash balance of pension is 184K. Seems to me this may be low compared to others coming from different companies, not 100% sure on that though.
Can anyone help me understand what a pension cash balance looks like for someone with 20 years from legacy T Management pension it would really be appreciated. I too do not think my cash balance looks right when discussing with colleagues and co-workers on same pension plan with same amount of time and in similar salary band. This is all very disturbing.....Can anyone please give me an idea of your cash balance in the Legacy T Pension Plan and yrs of service to compare. Thanks as it would be greatly appreciated.
You can go into Fidelity and look at the pension history and what was contributed by year.
I have had a lot of problems with them, too. Everyone there has been basically useless and just answers everything with “I don’t know”.
Are you referring to cash balance of 401k, or the pension balance? Is it the current employer contribution that’s not matching what you think but should be?
Also, new hire rules may apply after you came back. Meaning, employer contribution might not be the same as when you left. Easy to check the last employer contribution to figure out what percentage you are getting.