previously when I would check my Fidelity 401 and pension specifically lump sum at different ages ie 58,62,65, the lump sums would increase with age now they are declining has anybody else noticed this. Spoke with Fidelity they confirmed this and said the company is doing this. Not illegal Fidelity just posts the data
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Not really a dumb question as there are so many different plans I’m curious myself and going to call a. Ex coworker who was affected by that agreement I stated earlier to see what the differences actually are
Dumb question but can someone pls clarify Cash Balance versus Lump Doesee folks using both on here. I thought if you took the total Cash Balance not in an Annuity it was basically referred to as the Lump Sum? or is Lump Sum something previously offered like a buyout to folks on a different pension or older pension plan? Thank You for educating me.
I’m with old Legacy T back in 1999 our union struck a deal with the company that any member that did not have 15 years service as of 1997 no longer had the defined benefit pension plan and went into the cash balance plan which was not nearly as good In return the union was given “card check privileges”. this was a total sell out for many members which only benefitted the Union. I suppose what I’m trying to say is that even people with two years less service than me have a different pension and I think their lump sums may be based on another formula but I’m not really sure
A 30 yr non-management employee called Fidelity last year and was told the lump sum is based on life expectancy. I’m seeing the same thing with my own projections - it appears that if you retire at a later date and you take the lump sum you will receive less money. What I would receive if I retired and took payment at 55 is more than if I took payment at 58, but less if I waited until 59 or later. But if I elect to take the monthly annuity option - the longer I stay — the higher it goes.
i'm craft also hired in '97
@Jqa
I noticed this a couple of years ago when I doing future estimates. What I came to realize was the Pre-99 pension money maxed out right at my 30 year anniversary. It started a slow decline after that. I should mention I am craft. Management may be different. Hope this helps.
In regard to the poster refuting the statement made about modified segment rates as a result of the CARES Act, I hope you are correct that the earlier poster was wrong.
Believe it or not my lump sum STILL has not gotten back to the level it was calculated at in 2012. That is a fact. ( 8 years later and still not all the way back. ) So, I freak out any time I read anything about changing the interest rates.
Thanks for your clarification.
" As part of the CARES Act that just passed, corporate pension plans will be using a “modified” interest rate to calculate pensions"
EVERY ASPECT OF THIS STATEMENT IS 100% COMPLETELY FALSE. THANK YOU.
Please provide a link detailing the modified segment interest rates starting in 2021. Where are you getting this information?
Be careful relying on the interest rate used to calculate the lump sum payout for 2021 and beyond. As part of the CARES Act that just passed, corporate pension plans will be using a “modified” interest rate to calculate pensions. Because of the extremely low interest rates the WuHU Flu has caused, the modified rates will be higher than the actual rates. This was done to help the companies, not the employee receiving the pension.
Segment rates dropped big time for April 2020. If the trend continues and you survive 2020, 2021 will be a VERY nice jump in lump sum!
https://www.pensionsoft.com/resources/Segment
They also did away with Supplemental benefit which added to the pension....We received a notice about this a month or so back....
pension transformation
I was looking at the pension benefit lump sum if that clarifies things
The minimum value segment rates which are uses to calculate lump sum amounts went a lot higher for the month of March. If you retire this year they will use the rates from 11/19 They will then reset again on 11/20 for anyone retiring next year. My amounts went up not down using future dates. Hopefully March isn’t an indicator of things to come. You’re not referring to the cash balance are you? This is not the same as the lump sum
"pension smoothing"
one last thing 2 months ago when I checked the amounts had increased last week when I checked the amounts had decreased that's what caught my attention
randy's creative accounting is always stealing. it steals from the employees, customers, and anyone else that does business with att. the pension lawsuit is pretty clear cut. they didn't update information so really nothing to it where you cannot know what isn't going on.
So it is stealing when you do not give people the money they earned. Not really sure what you mean by not knowing what is going on. @iis+14WGgJqa so sounds like you are an att leader or maybe asset management maybe you can give us your expert opinion as to the lawsuit. it pretty much is in black and white as to what they did which was steal money.
When you don't know what is going on, someone is always stealing from you. At least that is the story.
was told that by Fidelity what is curious to me is that in the past 5 years that I have checked the amounts have always increased
What information did they not update?
I’ve noticed a slight decline when looking at various dates. More so after 30+ yrs of service and plugging in an older retirement age. However the monthly annuity doesn’t decrease.
The simplest explanation is the lump sum is calculated by taking $ required to pay the annuity over so many years based on actuary tables (life expectancy). As you get old you need less of a lump sum to pay the annuity due to fewer years of life expectancy to pay it.
weird, not seeing this in my calculations
lol randy's legacy they are being sued for the last lump sum pension payout because they did not update the information. criminals plain and simple stealing money earned from the employees.
https://www.plansponsor.com/att-sued-calculation-early-retirement-benefits/
just unbelievable really. I hope randy enjoys his money he stole from his coworkers.