Thread regarding AT&T layoffs

RE: "OP, you don't have to wait until 59.5 to pull from your 401k. The IRS Rule of 55 allows an employee who is laid off, fired, or who quits a job between the ages of 55 and 59 1/2 to pull money out of their 401(k) or 403(b) plan without penalty. 1 This applies to workers who leave their jobs anytime during or after the year of their 55th birthdays."

Not the case. You must have an "immediate and heavy financial need." Refer to the IRS 401k Resource Guide at https://www.irs.gov/retirement-plans/plan-participant-employee/401k-resource-guide-plan-participants-general-distribution-rules.

You do not get the HRA unless you are age 65 on Medicare. Pre-65 you get high deductible gold/silver/bronze medical and dental subsidized (for me bronze BCBSIL is free) careplus and a minimal vision discount. The previous post is incorrect.

@-4lvh, not sure what's your point. If you retire by or before end of next year 2020, and are not yet the age of 65, then yes going through the HRA program to make sure eligibility, then you can get the subsidy 2700/1500 depending on spouse as well as all the items you purchase, you will get that subsidy till 2023, even if you don't make it to 65 and the subsidy runs out, you can still take advantage while it lasts. It's an, one, incentive to leave next year, as to me thinking that anyone in MR75, can stay her for 2 or more years seems highly unlikely. So trying to work beyond next year, basically isn't worth it. The company knows this is the case for many, and it's another gentle nudge out the front door.

Do not leave AT&T just because of that HRA benefit. You are not close to age 65/MEDICARE.

FIND SPD "AT&T Medicare-Eligible Health Reimbursement Account Program
Effective Jan. 1, 2018"

2015 thru 2023 –
Eligible Participant who purchases medical or pr-scrip-ion d–g Qualifying Insurance coverage through the Exchange receive $2700 for employee, $1500 for dependent.
Eligible Participant who purchases only vision and/or dental Qualifying Insurance coverage through the Exchange $300 for employee, $200 for dependent.

@-3xkk, it can actually weight in. If I retire next year, I can get the HRA for 4 years, then go 4 years without it till age 65. Thinking that I can forego leaving next year to get 4 years of HRA, and keep working till 65 here, or even working only say 2 more years, here, in this environment?? What if I didn't retire next year, and got slapped in 1Q22, poof, I'm out, and no HRA at all. When I could have left in 2021, got HRA, and then perhaps became self-employed, or go work for the competition that's kicking our @$$. The more I personally analyze this, the better it looks to bug in '21.

"Employees retiring after January 01, 2021 will no longer receive the medical subsidy (currently $2,700.00) after qualifying for Medicare"

AFTER qualifying.... You'll have to pay for your own MediGap insurance.

This doesn't change anything for the period before Medicare eligibility.

If you're close to Medicare, this matters. If you're not, this isn't a singular reason to run out the door. You still have time to prepare to pay the difference while collecting your salary.

Modified rule of 75 IS NOT age plus years # 75

But that whole HRA program goes away for everyone in 2023, unless there is a change. No longer does AT&T take care of their people for life, as in the past.

"Correct me if I'm wrong, but to get the MR75 plan you have to be exactly 50(w/ at least 25 yrs svc), 55(w/ at least 20 yrs svc) , or 65(w/ at least 10 yrs svc). Not sure what your plan is, but 60 isn't eligible for MR75." - You are wrong - you must at least have an age + service years of 75 or more,

Correct me if I'm wrong, but to get the MR75 plan you have to be exactly 50(w/ at least 25 yrs svc), 55(w/ at least 20 yrs svc) , or 65(w/ at least 10 yrs svc). Not sure what your plan is, but 60 isn't eligible for MR75.

Yea nobody after 2021 is eligible for the HRA, however there is no guarantee past 2023 for anyone currently eligible. I don't get to medicare until 2024, so I may not get it even tho i am eligible.

And I thought the financial industry was full of dinosaurs.

quote: though my FRA for Social Security is late 2021. Do well, be well, and live well. /quote

Do yourself a favor and live off pension/401k until 70. the SS bump is huge (8% per year) vs taking at FRA!

OP, you don't have to wait until 59.5 to pull from your 401k.

The IRS Rule of 55 allows an employee who is laid off, fired, or who quits a job between the ages of 55 and 59 1/2 to pull money out of their 401(k) or 403(b) plan without penalty. 1 This applies to workers who leave their jobs anytime during or after the year of their 55th birthdays.

@WBtB – Regardless of the choices given or made about being 59.5 please take time to explore the information on '72T' rule with Fed gov. about accessing your funds IF it becomes necessary. Learn all you can about avoiding the 10% penalty above and beyond standard taxes on fund access. Much success to you.

I can only hope all get something they can work with from staying or leaving.

Still here so far...2021 and the Medicare changes therein will be reviewed by me as I age to 65 next year on leaving in 2020; though my FRA for Social Security is late 2021. Do well, be well, and live well.

They could pull the rug out from the Medigap subsidy at any time. The letter sent to the Unions assure coverage only through 2023.
"The experience within the Exchange plans has been positive and we are able to keep your HRA crediting amounts through 2023. Beyond that, future changes in HRA crediting amounts, if any, will be based on several factors. These factors may include business conditions, government actions, marketplace changes and the general consumer inflation rate."

Business conditions ....

Unless my math is wrong, you would need a $68,000 Annuity to replace the subsidy. So, basically leadership is taking $68k away from every manager. For me, I see myself leaving Q4 with or without a surplus. There will be a Q1 surplus so maybe get on that train but the net result is about the same.

OTOH, Stankypu$s just got a very large raise in compensation. Apparently the executive class doesn't have to share in the cost cutting and sacrifice that the worker class suffers to pay for Randall's spending binge.

I just went back and read the email again. Unless you retire before 1/1/2021, you will lose your subsidy when you turn 65. That sure looks like Ma Bell is putting the pressure to get more of us to volunteer and retire.

Hiring in after 97 takes away medical coverage that is subsidized by the company pre 65 retiree and the email takes away 2700 subsidy for the medigap offerings from AON as a 65+ retiree in 21. You can still get medical as a pre 65 retiree, but you will pay the entire monthly cost, about $900 or so as apposed to the monthly you pay as an active employee. Retirees that hired in prior to 97 and under 65 age still pay near the same monthly as they paid as an employee. Mine is $30 a month higher than what I paid while working. Best plan for hire dates after 97 is to budget $1000 a month for medical if you retire under age 65.

about 3 hours ago by Anonymous
8 reactions (+8/-0)
Post ID: @12zjfELV-1rch