Thread regarding AT&T layoffs

Leaving your money unmanaged is risky. Best to take the lump sum now and reinvest it. This is also true of your 401K. Folks on here keep mentioning speaking to HR but they aren't trained in money management. I would speak to a financial advisor. If you let your money just sit there you could lose a lot of it if 2009 happens again. Instead get a money manager to watch it, or put it in something safer like an annuity, so you don't lose half your retirement savings.

@V0pkZXq-2psv

The risk to leaving the pension in place are rising interest rates. This is with regard to any lump sum payment. As rates rises, less capital is required to support annuity payments. The lump sum formula takes a 3-factor blend of rates and recalcs the lump sum payment every years on that basis. It's calculated in November and is applied to the following year. Interest rates have no impact on the monthly annuity payment. So, if have plans for using a lump sum, rising interest rates may reduce the plan. In any event, if you take a lump sum, you need to have a plan for re-investment or use. You can roll the lump sum into a regular IRA to defer taxes. That's usually the way to go else you'll be paying a bigger tax bill at withdraw time.

As for your 401k, you can probably leave it in place indefinitely. If so, it and your pension balances have advantages if you face bankruptcy or apply for disability down the road. These retirement account balances do not add to your computed assets in those cases. Not so for IRA balances. It's easy to do trustee to trustee transfers out of your pension lump sum (if you choose that) and your 401k balances to your regular IRA or Roth IRA. Fidelity will help guide you to do like-for-like rollovers to avoid taxable events. Set up an IRA and a roth IRA if you have any ROTH 401K balances or just use existing IRA. Always check with the Fidelity rep the latest rules and the rules do change,. The custodian will not cheat you out of your 401k or pension due to any obscure catch-22 regulations.

re: @V0pkZXq-2psv

You apply to take your pension after you terminate. There's no rush and there's no rule that says it's either now or at age 65. Each person ought to call Fidelity with such questions Even under this administration, the Federal rules remain in place that protect pensioners. Again, run the simulations or ask the Fidelity rep to do it for you and they will mail the estimates to you.

A mistake to leave retirement and pension upon your departure, get the money out ASAP

As a few posters have correctly mentioned, whatever you have earned up to the day of your departure, is yours. You have a specified period of days to re-shelter your Pension Benefits (as well as 401K money) or you will be taxed, or you can leave it in place and return at age 65. Best to talk with HR so you know all the options.

Seems one poster thinks reaping 2-3% growth is “funny.” So let’s look at it, take a 20 year T veteran at age 50 with a Pension of $250,000 but now let’s take the authors avg of say 2.5%, Upon their return (@ age 65) a nice sum of approx. $360,000 is waiting and all they had to do is let the magic work. Naturally anyone can keep tabs on its progress.

A question for HR: if you decide to leave it alone, upon departure, can you transfer it later, before age 65? T may have some rules on that. If you’re in this situation, ask a lot of questions.

They didn't lose their pension. They may have to wait until their 65, but they didn't lose it.

Reap the growth? 2 to 3%? Funny

Everyone in a defined benefit pension plan may collect the annuity and or lump sum as defined by the plan upon termination for any cause. At ATT one can also defer the payout up to age 65 and reap the growth. The online calculator tools at Fidelity show the benefit given different quit dates and collect dates.

To @V0pkZXq-pxp, In this day and age, you may be correct. There is no loyalty by either party, the employer or the employed. But there WAS a day, when it was understood that if you gave up your weekends, holidays, were called out in the middle of the night, asked to work overtime at a moments notice, sent on a service emergency half way across the country away from your family for a month for a multi-billion dollar company, that you would be appreciated and rewarded with what was contractually agreed upon. I feel sorry for you.

Please, no one tell this mental giant "whaterver" a pension is. I have a feeling this individual might bust a spring if exposed to this knowledge. The post does have an indentured servant, I mean H1B vibe to it though.

It's people with this mentality AT&T needs to get rid of. If you want to clock years and get a pension (whaterver that is), then go work for the Gub'ment. This is a BUSINESS and its ONLY the number that matter. If you want a company to be your mama and take care of you, go to some commie country where that happens.

I see Randall in my toilet twice a day, & It is not a pretty picture