I have noticed in the past, that at various times of the year, when I recalculate pension annuity there is an increase . Does anyone know when Fidelity does the recalculations, Or is it at the same time every i.e quarterly or bi-annually?
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How much your Lump Sum increases/decreases depends on the Corporate Bond Rate. It is decided every December. If the rate goes up....your Lump Sum decreases. If the rate goes down, your Lump Sum increases. What you see now will change by month because of your age, but it isn't that much. It's the Corporate Bond Rate that gets you.
if you keep running the same calculation target date, it won't change until the new rates are applied in January, or after your base compensation changes in Q2
Out of AT&T now. Considering taking pension in lump sum and roll over to IRA. Should I take it now or wait until Jan 2020 after they recalculate this in November. Also, I heard that when intrest rates goes down, pension anount goes up. Is that true? Appreciate your response. Thank you!
When you get your raise and/or bonus Fidelity will recalculate when they get that actual information from AT&T to replace the estimate that you previously gave. The cash balance is actually funded on a continual basis even though a report is only provided annually. You can tell that picking retirement dates that are a month apart and seeing that the cash balance changes.
They recalculate about March when they find the pension. It will increase your balance and increase the payout
i know they do calculations for the next year around november when the new irs life expectancy tables come out, which could lower your lump sum as you get older.