Thread regarding AT&T layoffs

.....Annnnnnddddddd TIME is up!
Now that the loss is out of the way pray that you don't get laid off now that you loss 40% of your pension. If you do get laid off they will be paying your severance with the same money you lost... At&t will still profit off your decision to stay. Sigh.

Thanks, guess I’ll quit now. 57 years at T this month.

Can't ATT steal the money out of my IRS if they go bankrupt, or is that just the 401k and pension?

In response to:
"How much is the lump sum taxed when I withdraw it? 30%?"

If you're 59 1/2 years of age you can withdraw without a penalty. You'll pay normal income tax as it is not income.
If you're younger than 59 1/2 you can use a 72t IRS process to withdraw money without penalty. However, you have to continue monthly withdrawal until you are 59 1/2 or you will pay a penalty... somewhere around 10-15%.
I recommend you look into it because there are options.

Move your lump sum to a rollover IRA and you won't be taxed. You manual laborers sure are stupid

How much is the lump sum taxed when I withdraw it? 30%?

To the person that wrote the below question.

If you don't want to play the market, that is no issue. Get into an interest only fund, or some other kind of very conservative fund.

If you decide to roll into your T 401k, it will go into the the AT&T Stable Fund, which YTD yield is 1.26%. Probably about safe as it gets

There are options, you really should investigate for yourself those options. Getting employed after T can be a real challenge, maybe nothing to do with T but age.
30% or more is a ton of money, you owe it to yourself to check and understand they ways you can safely do this. If you get laid off, you will be forced to do this anyways, might as well be prepared

_______________>
Thinking about retiring by EOY to preserve my lump sump from 30% decline. However, if I do retire and market will be performing as last 12 months, I may end up losing 30%. Which makes me think if such move is worth it. Maybe it is better to stay as long as I can. If I get laid off, at least I get severance and unemployment which will compensate some loses. Not to mention paychecks and medical which adds up to the positives of staying.

Thinking about retiring by EOY to preserve my lump sump from 30% decline. However, if I do retire and market will be performing as last 12 months, I may end up losing 30%. Which makes me think if such move is worth it. Maybe it is better to stay as long as I can. If I get laid off, at least I get severance and unemployment which will compensate some loses. Not to mention paychecks and medical which adds up to the positives of staying.

The level of stupidity is ridiculous, thinking the company controls the lump sum. The reality is that it the mortality index and fed are in control. Time is of the essence for those that need to make a decision is the bottom line!

The company is not reducing the lump sum: The lump sum is determined by the IRS segment rates as are most other company pensions that offer a lump sum. This has no affect on annuity payouts for future retiree's as the company is legally obligated to maintain the pension for existing retirees. Yes the company can reduce or freeze future contributions but I assure you it has nothing to do with current lump sum pay outs

Ok ma'am. Enjoy your lump sum. Make sure you get a professional to manage it because you will lose all of it if you try to manage it on your own.

Remember, it wasn't a 401k for a reason, and you squander it by withdrawing a lump sum.

In response to:
"If the pension is truly your money, the company could not reduce the lump sum by hundreds of thousands of dollars. ....."

I took my money and ran before I lost $161k or more....
Do what you will...stay and work for free. I don't need to convince anyone. Adios.

If the pension is truly your money, the company could not reduce the lump sum by hundreds of thousands of dollars. In reality, there is one pension fund that we all draw from. The only guaranteed amount is the annuity. And that is only your money when it pays out each month. The rest of that money is there to be spread out across everyone's pensions.

Here's the bad part. If you withdraw now, and interest rates lower again in a few years, our pension is suddenly underfunded for the rest of us. The company will have to put more money in, or freeze the pension. This is called a second order effect. Most ATT blockheads, sorry, bellheads, have no concept of these.

In response to:
"All of you who say you need to leave or lose hundred thousand dollars have already cost the company way more than hundred thousand dollars of lost profit. Do the right thing for once and leave the extra money there for the rest of us......"

Level of stupidity at it's finest. You do understand that the pension acquired is YOUR money, right? People have put in the time with this company and it's about to be taken back to the company by those at the top. The rest of the "workers" are getting stiffed regardless. Walking away with your pension is the best you can do for yourself and your family. Sigh. Some people would rather pay the company hundreds of thousands just to keep their job and work for free.

All of you who say you need to leave or lose hundred thousand dollars have already cost the company way more than hundred thousand dollars of lost profit. Do the right thing for once and leave the extra money there for the rest of us.

With the level of intelligence and expertise you've shown over the years you will lose the hundred thousand dollars very soon even if you take it as a lump sum. This might be the de facto layoff package you've been waiting for but please leave the money for us so there are no more layoffs.

quote
Sorry for this question because I should know the answer but I don’t. When you look at the pension estimates, there is a lump sum, annuity, and a third option of a partial lump sum with annuity. Will this third option also be negatively affected by interest rates?
/quote.

Thought I would ad some clarification.
It is correct that the pension annuity won't be affected by interest rates. However, current Pension annuity rates for this program are well below the amount you can get from an insurance company today. New York Life Insurance (top rated) will pay out 7.2 percent of the amount of the purchase price. AT&T is only paying out 5.5 percent of the Pension based on lump sum.
That's not the end of the story, when you buy from NY Life Insurance, you get a death benefit. The death benefit means that if you die early, your beneficiaries receive the unused portion of the Lump sum amount! If you don't know what I'm talking about, make haste and study up! BTW the AT&T pension annuity has "ZERO" benefit your beneficiary's.
You can also get a 2% per year inflation adjustment with the NY Life annuity. AT&T=Zero inflation.
Keep in mind, Fidelity can NOT give you advice on your 401k. You need to ask them for advice on your Fidelity IRA. Let them know your rolling to IRA and you want to compare the NY Life annuity vs AT&T annuity, then they can advise you.

Bottom line, taking the Lump, rolling to IRA, you can get a A++ annuity though Fidelity that includes a death benefit and inflation protection that pays out the same or more than the AT&T pension annuity!

"No, annuity will not be impacted."

The monthly payment option that is commonly referred to as an annuity is impacted by external factors such as inflation and it does not have a COLA, cost of living adjustment. These two factors will erode your purchasing power greatly over time and should not be ignored. Make your decision wisely folks.

Yes! Take your money and run!! I left last year along with many that left because they would have lost so much money!!! Never work for free!!!

The pension is near fully funded now but it won't be when people start pulling these huge lump sums outm. That's why they are reducing the lump sums, to protect the rest of us.

Why would the same people who destroyed the company over the last decade, who couldn't execute on the software and media pivots, be rewarded for their incompetent laziness?

The pension is near fully funded and healthier that AT&T. It will be paying retirees long after AT&T is no longer.

response to:
"Typical Stank move. Get employees to leave when lump sums are high and pension balance low. Just like buying DTV and Warner high and selling low. What a dope."

What a dope. This has nothing to do with Stank or At&t... it's the segment rates. Sigh.

The only part At&t has in this is they now contribute less to your pension... which they may freeze in the near future... look it up. Stank said it himself.

Typical Stank move. Get employees to leave when lump sums are high and pension balance low. Just like buying DTV and Warner high and selling low. What a dope.

Next step is to freeze the pensions, followed by wiping out the pensions and let PBGC (pension insurance equivalent to FDIC for banks). If PBGC takes over then everyone is in trouble.

If the PGBC steps in then AT&T is in serious financial distress and probably filing for bankruptcy. They then must prove in bankruptcy court they are unable to meet their pension obligations and really don’t see that happening. They can choose to continue funding it and have already eliminated pensions entirely for recent hires going back 10 years or so.

Id--t Alert......
"Great so the guy with the million dollar lump sum that would go down to 700k is essentially going to steal 300k from the rest of us by leaving now. The rest of us will be left with an under funded pension and reduced benefits from the PBGC."

It's not stealing... it's HIS pension money.

Some people... SMH

Great so the guy with the million dollar lump sum that would go down to 700k is essentially going to steal 300k from the rest of us by leaving now. The rest of us will be left with an under funded pension and reduced benefits from the PBGC.

In response to:
"Or you can wait a year or so until rates go back down. Rates are higher this year than in past years (except last year when they were abnormally low.) The higher rates mean lower lump sums. The company is trying to scare you into believing they will just keep raising. This way they get you to leave and pay you less."

You do understand that if you wait for rates to go down it'll reflect the New balance (minus 30-40%), right?
Some people just don't get it. SMH (Shaking My Head).

In response to:
"Sorry for this question because I should know the answer but I don’t. When you look at the pension estimates, there is a lump sum, annuity, and a third option of a partial lump sum with annuity. Will this third option also be negatively affected by interest rates?"

No, annuity will not be impacted.

response to:
"Boy you must really be concerned that your job is at risk to be pushing this hard for the exit of all these retirement eligible people to leave"

I left in September. I'm trying to help people out and inform them of the pending loss to their pension. Not all are affected, but those that are will be shockingly surprised when 2023 hits.

This will be life impacting to some. I personally know of someone that has 45 years with the company and has over a million dollars worth of a pension... they will lose somewhere between 300k to 400k!

Anyway... I don't need to explain myself... I took my pension money and ran. Do what you will.

Boy you must really be concerned that your job is at risk to be pushing this hard for the exit of all these retirement eligible people to leave

Sorry for this question because I should know the answer but I don’t. When you look at the pension estimates, there is a lump sum, annuity, and a third option of a partial lump sum with annuity. Will this third option also be negatively affected by interest rates?

Or you can wait a year or so until rates go back down. Rates are higher this year than in past years (except last year when they were abnormally low.) The higher rates mean lower lump sums. The company is trying to scare you into believing they will just keep raising. This way they get you to leave and pay you less.

response to:
"Never follow the crowd!!!"

Are you referring to those that are staying (crowd)? or those that are leaving because of this pension hit (very few)?

Never follow the crowd!!!

response to:
"They should freeze lump sum withdrawals to save the money for the rest of us!"

Stankey made a statement in 2021 about freezing pensions in the coming future to save the company. Look it up.
This will affect everyone! They are starting by contributing less, which started this year. Next step is to freeze the pensions, followed by wiping out the pensions and let PBGC (pension insurance equivalent to FDIC for banks).
If PBGC takes over then everyone is in trouble.
Warning, get out while you still can ;-)

They should freeze lump sum withdrawals to save the money for the rest of us!

I’m planning to take annuity. No effect. Will stay here as long as I can. Need medical and dental and paid vacations and of course my paycheck.

"When all said and done you may end up working an entire year of your life, or more, for free!!!"

That's why some of us do as little as possible. They get what they pay for.

Additionally, as of January 1st 2022 T now contributes less to the pensions. This means that making up the lost money would be nearly impossible in 10 years even if the rates drop. When all said and done you may end up working an entire year of your life, or more, for free!!!

Probably too late if you are L-T where the last day to get out is November 30.

I'm outta here.

Stink - go F yourself you POS!

BTW, the -30% loss was based on July's segment rates. It's close to 40%+ now with the new rates as of October. November is the final rates that will apply to 2023.....so you can lose a lot more if they go higher. Based on the trend, Novembers segment rates will go up.
Call Fidelity now!