Since rates are so low I don’t want to miss an opportunity to receive the largest payout since I’m not sure these rates will ever be so low again. I am late to the party but am struggling to determine what my current lump sum would be. I received the account $ through a qdro. Calling the Verizon Benefit office for info is usually not very fruitful and if I ask for commencement and get transferred to the commencement case admins, they are just as fruitful. I received 2 estimates based on a gatt rate of 3.04%. Yes, just estimates but they were up around $150,000.. Commencement dates in 2019 and 2018.... I request actual commencement paperwork for 12/1/19 w a rate of 2.82 and the total lump sum is only $119,000. Off by $30,000!?!? how can these estimates be so off from the actual?.... (my qdro does not have a valuation, just a percentage.) they can’t be just making up % and lump sums, it seems like it’s not an estimate, it seems like they just picked random numbers. How could they not base the estimates on actual information! .... also, after spending many hours trying to figure this all out or get a clue, is the gatt rate the monthly 30 year treasury rate ? Last question.... I also read that the % is based on the previous quarters second month , but then read its based on the month prior to the first month of the calendar quarter ( 3rd month of previous quarter). Trying to make sure I’m getting the commencement based on the month that gives me the most money since I read the lower the % gatt, the larger the lump sum , which is not what the commencement advisor told me! BUT I can’t determine which month that could be!? My ex (not useful or trusted to give me help with this). worked first in the trade center and in mid 90s transferred up to Rockland county garage, did installs then did fiber. Kids always would yell “it’s the pie wagon’ if they would see work going on in a manhole! I appreciate all your comments and direction! Thank you!
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Gatt for 3rd quarter is 1.38. Feds are not changing interest rates for awhile but that foes not mean the Gatt eill not change. Gatt is good for entire quarter. 4th quarter Gatt will not be known till mid August
OMG Dude. Hire an Accountant. This isn’t the forum to get this advice.
Though the OP’s follow-up comments have now been removed, she used very condescending verbiage and referred to people employed here as “kids”
Why help this vulture pick the bones of a pension?
right now the gatt rate verizon use is from February which is 1.97 and may go down again in july which will make the lump sum go up. https://www.irs.gov/retirement-plans/weighted-average-interest-rate-table
I’m not sure how it works with exes on these....but...I do know that there are several different criteria that they use to find the best lump sum....that being said....for most it is the quarterly GATT rate that seems to bring the highest number....it is based on the rate on the Far Right of this chart.. https://www.irs.gov/retirement-plans/weighted-average-interest-rate-table ..only February , May, August, and November ones are used for the quarterly gatt....as you can see...they haven’t posted the May 2020 one...it will be very low...that rate is supposed to cover any lump sum distributions that happen from July 1 thru sept 30 2020....Verizon is behind implementing these into their computations for some reason....my question is on what exact date did you request a lump sum for 12/1/19? The rate they quoted you seems off to me...I’ll be watching the new May rate because there is a chance I will retire if it is low enough....could be as low as 1.35% but I’m waiting to see...if true...i will probably take mine on 9/1 so they have time to utilize the correct numbers....
@kio+15gAhcCM If you call the VBO and ask how much is in my pension account, you can get an estimate, which seems to be completely off by tens of thousands of dollars from what they say is the actual amount. ..... the information on my estimates seems to be baseless as it Does not come close to what was listed in my Commencement paperwork ( what Verizon calls when you request your pension money)... (and it’s still called a commencement by Verizon even though I received the pension account due to a divorce . I was never an employee. My ex husband was) . I seem to get conflicting information from the commencement admns when I call in, and the amount Verizon provides on the documents is never consistent. The amount is based on a treasury rate, So if the rate goes down, the lump sum goes up. At least that’s what I’ve read on a post on thelayoff from 2017. If a half of a percentage point gives me an extra $40,000, I want to make sure the rate is the lowest I can get. It all depends on what the rule is for the pension. I’ve seen it’s based on the second month of the previous quarter, and it’s based on the last month of the previous quarter. I don’t want to throw money to the wind by not finding out answers to my questions.
Op, not everyone knows what a qdro is. It’s a qualified domestic relation order. Like what the non owner of the pension is entitled to in a divorce. P.s. depending on the age of your ex, once you hit 55 you lose money in your uncommenced pension every month. Evety ,onth what you lose gets higher because the lump sum is based on the mortality tables.
OP, I don’t understand. Why are you looking at a hypothetical “commencement paperwork for 12/1/19...”?
I don’t understand why any of this is a mystery. The information you seek is provided by the Company and easily within reach. If you’re unaccustomed to verifying your numbers via the site why not just reach out to the other fellas in your garage to show you how to access your various retirement date scenario numbers on the company provided computers?
If you’re working in an isolated scenario, call your union hall for guidance.