MTP (Retirement) - w/in 24mo - post regarding AT&T layoffs

MTP (Retirement) - w/in 24mo

I'm one of he people that is w/in 24mo of Rule Of 75.

So I can give up 50% of my Severance to get retirement.

I called Fidelity to find out if this has a benefit impact on the Pension

Answer = Yes

Without Retirement Lump Sum Pension = 235K

With Retirement Lump Sum Pension = over 500K

Now realize it all depends on who your pension started with. I checked with another person in similar situation as me and they only have about $150K.

Note: If you already meet the Mod Rule Of 75 what you see now for your pension is correct. My situation is only because I need to adjust the dates as if I was qualified since I will buy the 24 months.

So.............how to find out

Log onto Fidelity (where your 401K is)

Top left is 401K and center is pension. Click pension

Pension screen...top you can click on Estimates TAB

Down some on the page you will see two spot for dates input.

2nd date spot...above it: Enter and age date, or Commonly Used Dates...this is a link you click on.

Pop Up...........Pick last one and X Modified Rule Of 75 Date..........bottom [Use This Date] click

Goes back to prev screen.

Now 2nd date spot will have a date populated.

Go to the 1st date spot little above 2nd and put in the same dates.

Go back to 2nd date spot and increase it by 1 day.

Fidelity told me their system doesn't like it when both dates are the same.

Down the page.......Survivor Date of Birth....input spouse if you have one.

Bottom of the page [Calculate Payment Options]

When I did this it jumped my Pension way up.

Fidelity told me this number is not totally accurate since the system is acting as if I remain working at AT&T until those dates and AT&T continues making contributions. So my real number will be somewhat smaller but...........my number is much better with MTP than without.

Hope this helps

Comment! It's anonymous!

10 replies (most recent on top)

MTP is for benefits ONLY. Pension is not affected by this program.

This post is just WRONG. Please call BENEFITS to see if MTP will get you to insurance. It is not worth half of your sevetance if it goes not. MTP has nothing to do with your pension and it is unfortunate people give out bad advise here.

I just re-read your instructions, your error was the entering a date equal to the MR75in the first box, you enter the actual date you stop working period. You are either MR75 eligible at that time or you are not. MTP does not give you NCS credit for pension. If you enter the MR75 date in box 1 and MR75 date +1 in second box, OF COURSE it makes a huge difference. If you don't make MR75 (does not apply to all pension plans, I don't think the bellsouth plan has mr75) AND you want to take lump or pension immediatley, you lose %50% plus of pension. If you terminate work prior to MR75 and wait until age 65 to collect then you get full pension. Read your pension SPD and Severance documents folks, its all out there in black and white

MTP is Mgt Transition Program. I disagree with original poster, it does NOT impact pension, it only gets you benefits like medical, life insurance, and retiree discounts (what a joke those are). MTP at the cost of 50% of severance with add up to 24 months to your service date to get you MR75 qualified for benefits only, not pension. That said, there are 15+ active pension plans out there, not everyone has same rules.

OP- you need to get what you have posted in writing from Fidelity about the MTP impacting the pension calculations with the dollar estimates shown. Just because a Fidelity Phone Rep tells you something it does not mean they are familiar with the official plan documents (not the SPD). I am very familiar with one of the pension plans documents and only actual time worked counts (NCS date) towards the pension calculation based on years of service. Good Luck.

MTP definitely does not get you to MR75 for pension. I have confirmed this multiple times during the last layoff.

I'm the originator: If you are withing 24months of your Mod Rule Of 75 you need to check out what I did to find out about my Pension. Taking the retirement 24 month thing and giving up 50% Severance DOES impact your pension. If you don't believe me call Fidelity and them them specifically.

What is MTP?

MTP IS not for pension. It is only about benefits

This makes my head hurt. Best of luck to you.

Thread regarding AT&T layoffs

MTP (Retirement) - w/in 24mo

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