If I can make it to January 2024, does this mean that my years of service (started with leg T), which will be 22 come May '24, counts as 22 as of January?
As of January, I will be 54, so I make Rule of 75 somewhere next year.
20 replies (most recent on top)
I find it hard to believe someone with 22 years of service doesn’t know what MR75 is. And then to top it off they come here to find out?? This is a fake post! Come on trolls, you can do better than that!
The only 75 I know is $75 I make an hour
No you dont meet you need to be 55 if you barely have 20 years. Im screwed also i have 27 years but not even close to being 50.
(1) at least 30 years of service, regardless of age;
(2) at least 25 years of service and at least 50 years of age;
(3) at least 20 years of service and at least 55 years of age; or
(4) at least 10 years of service and at least 65 years of age.
For those on a cash balance pension program, it does not matter but if you are in a legacy S, legacy T or legacy SBC, it does matter. No healthcare benefits either as all of that was cut more than three years ago.
Nope, almost everyone in Management in the SE is cash balance that does not go way up unless two things have occurred:
1:) you have a mix of management and craft.
2:) you have a mix of defined pension and cash balance.
Most have cash balance that goes by a percentage of your salary based on years of service and the current interest rate applied to everyone.
Again, this is for the SE. No big bump at MR75 for Management. Sorry.
Call HR, thats what everyone else does.
"Management does not get a huge jump in pension ever. It is a cash balance plan in the SE. Unless you have been craft at some point"
That may be true for SE. People outside of the SE need to check with Fidelity. I was legacy sbc, My lump sum nearly doubled after I hit my MR75, and the Annuity option more than doubled (went from 1200/month to 2700/month)
"This is not the case for everyone. It all depends on how you were set up in your pension. I had to leave last year because of the segment rate hike, which would have caused me to lose 40% of my pension if I didn't leave by 12/31/22. I did the calculations because I was going to meet MR75 on April of 2024 and based on my discussions with fidelity and also using the calculation tool, I would still have been down 25% had I stayed."
This is a good point. The interest rate segments caused more harm to your lump sum (not sure about Annuity) than not meeting the MR75 date. it would have been a big gamble to hope that the interest rate segments would eventually become more favorable. Of course, anyone still there and leaves before MR75 now would be leaving under these interest rate segments AND the hit they would take by not staying until MR75.
"For those that don't know, the first significant pension jump is when you hit MR75. your lPlease talk to Fidelity or run the numbers in the pension calculator. The jump is significant when you hit the date in both the Annuity and the Lump Sum. This is very simple to calculate through that tool."
Not true for the pension plan that i am on (Managed Cash Balance). No jump at MR75; I've run the numbers. There's really no advantage for me to wait until I hit MR75. I think I read that there is a phone discount, but honestly, T Mobile has really good service in my area and looks like it would be a better deal anyway. So I am not letting MR75 impact my plans. Your mileage may vary, depending upon your pension plan and other factors. Best of luck.
Does MR75 apply to all employees? Is there a note in Fidelity if MR75 applies to you or not?
At 54 I had 21 years. I had to wait until I turned 55 to hot MR75. Mileage varies by pension plan.
Management does not get a huge jump in pension ever. It is a cash balance plan in the SE. Unless you have been craft at some point.
Who cares - all you get is a phone discount anymore which is still probably more than what service costs on TMO. Folks ask about "retirement"...that's just another word for "quitting" at this point....meaningless.
As others have indicated it is NOT just AGE plus time in Service = 75
Scary that a 22 year employee would not know that.
Rule of 75 is meaningless now that T has stripped benefits.
In regards to:
"For those that don't know, the first significant pension jump is when you hit MR75. your lPlease talk to Fidelity or run the numbers in the pension calculator. The jump is significant when you hit the date in both the Annuity and the Lump Sum. This is very simple to calculate through that tool."
This is not the case for everyone. It all depends on how you were set up in your pension. I had to leave last year because of the segment rate hike, which would have caused me to lose 40% of my pension if I didn't leave by 12/31/22. I did the calculations because I was going to meet MR75 on April of 2024 and based on my discussions with fidelity and also using the calculation tool, I would still have been down 25% had I stayed.
Highly recommend meeting with a fidelity advisor and go over your options because it can be different for each individual.
The rule is this. If you have 30 years, age doesn't matter. If you are 50 but less than 55, you need a minimum of 25 years. If you are 55 but less than 65, you need a minimum of 20 years. If you are 65, you need a minimum of 10 years.
That means that if you are 53, and have 23 years of service or 59 with 17 years you do NOT meet the MR75 even though the sum is 76. You would not be eligible until you turn 55 or hit 25 years.
If you are going to be 54 in January, you won't be eligible with 22 years of service unless there is something different with Leg T Pension plan.
For those that don't know, the first significant pension jump is when you hit MR75. your lPlease talk to Fidelity or run the numbers in the pension calculator. The jump is significant when you hit the date in both the Annuity and the Lump Sum. This is very simple to calculate through that tool.
But what is the significance of rule of 75? T took away retiree benefits so what is benefit for employee who makes “rule of 75?”
50 and 25
55 and 20
30 at any age
You must meet one of these goals. I.E. 49 and 26 doesn’t meet the requirement
Year of service is calculated to the day; you can see in elink when you were hired under employment verification.
IE, if you were hired on September 1st, 2010, you wouldn't get 14 years of service credit until September 1st.
The rule of 75 is age, exact age, Plus service, exact service.