Hopefully it holds for those planning to retire by end of this year and planning to collect lump sum or retire early next year.
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Remember to check att calculations chances are they are not updating the information correctly and stealing your money you earned.
https://www.thelayoff.com/t/13Bism5N
The segment rates went down again in Jan without any interest rate reductions providing a nice little bump in the lump sum Bear in mind GE is in far worse shape than AT&T over the last several years and don’t see the company freezing pensionsany time soon. At least not for craft and probably management either
I am pretty sure that Ratty and Stinky will squash the lump sum increase. You see, every whacked person that retires and elect the lump sum is more $ that T has to borrow to pay it out.
My initial retirement plan was to take T's annuity, but with the gross mismanagement and underhanded accounting and business practices, I think T will be unable to pay out the annuity in the not too distant future. You see, T must provide Fidelity a payment at the start of every year so that Fidelity can pay out the annuity. If T fails, then the gooberment insurance will eventually kick in and you would be lucky to see 2 cents on the dollar from them.
What the Fed did yesterday impacts the lump sum as of Jan 1, 2021. You'll see the effect by mid-December this year. This could be a 10% increase of the lump sum value as of Dec 1, 2020. If they lower it again this year or if they raise it (which would be insane), it's even better.
Some companies freeze their pensions. GE did that recently to their retirees/employees. Their lump sum pensions froze to the current amount. This will save GE a lot of money. AT&T could do the same. Or they could send retirees a letter telling them that their lump sum offer will expire and only the annuity is available after a certain date. We shall see.
Looks like I turn down any SIPP offer and retire at the end of the year! Boo yah!!
This should increase the value for those who elect to take the lump sum option.