Anybody actually see the math how they came up with buyout number they offered to folks? Called fidelity and opened a ticket to see if the formula but would like to see the actual math.
9 replies (most recent on top)
Buyout? For your pension benefit that you have earned, if you are just reviewing the Fidelity site information, the qualified cash balance on the pension summary page under the balance view tab is the amount the company has put into your account (per Fidelity).
Under the benefit view tab, if you estimate your pension benefit, that lump sum is a more real time sum of your account.
Moreover, you can choose when to take lumpsum or start pension. It does not have to be soon after leaving companty. Seems like that with dropping interest rates, come Dec, the rates used to compute lumpsum will be lower, hence resulting in higher lumpsum value. You can choose to wait for that.
Looking ahead.....Bond yields (interest rates) are dropping. This decrease in interest rates will increase your lump sum payout when readjusted later (November/December) this year.
the offer I got was like 140,000 less than the lump shown on the modeling page on the fidelity web site. so seeing the math on how they came up with their lump sum would be nice. must of been some kind of randy and johns accounting math.
@1uxi, all I see, so far, is people asking questions and trading information but you are coming across like the little boy who says “Aww schucks, at least you got dessert....I didn’t get nuthin.”
You signed on to T knowing all the rules and said “ok coach, play me!” If a Pension was not important enough to worry about then, we don’t need to see the tears now.
at least you get a pension. new hires in past few years don't get a pension. be grateful, not greedy. i would love the opportunity for a pension, those days are gone
When I look at my pension at Fidelity, I can run different scenarios: retirement age, lump sum, age to start withdraws, etc. When you run one of these, there is a link to download a detailed analysis document that shows you all the math.
what buyout? I have heard nothing.
I came very close to the buyout number using my monthly payout, then looking up my expected life span. I took that data to get a npv of that monthly payout and the expected lifespan. I was within about $50K of what I was offered.