Thread regarding AT&T layoffs

T keeps the retiree benefits & pension rules as diverse and as complicated as possible so we can't compare notes with any degree of certainty.

I hired in with Ameritech in 1999, management. I still have the Ameritech hire package and the Amertich rule was a flat age + years of service = 75 for a service pension, the party, concession, + medical welfare. Before the end of the year, we were merged into SBC. The rules soon changed- no medical for hirees after 1997, I think. The modified rule of 75 was also implemented. By 2016 when I volunteered for the severance, I had 80 points, but no party, no concession and of course no medical welfare aside from the short-term COBRA. And my pension was somewhat smaller than it would have been under the Ameritech schedule.

I don't know HR they got away with pitching me one set of assumptions at hire-time and knowing full well that it wasn't going to hold up.

Feh. Glad I'm out. Let the petty mediocrities rule.

@2sqh - ..."how much do you have to pay per month for your medical, dental, vision coverage? And about how much do you pay for life insurance?..."

That answer will vary so greatly between management v. bargained for and the specific contract, legacy company, etc. Your best bet is to call Fidelity Net Benefits and speak with a rep. They can pretty much model it out for you.

For those of you that retired with the modified 75 rule, how much do you have to pay per month for your medical, dental, vision coverage? And about how much do you pay for life insurance? I am 55 with 33 years, and thinking of retiring in the next year or so. Can't seem to find much help on the intranet.

Non-union folk: can you get the full pension & AT&T retirement perks at age 60 + 20 years credited service?

I'll have 25 years next week, 49 years old; won't be 50 until Sept. Does the age parameter count now, or do I need to actually turn 50 before meeting the requirement?

To "T pushed me out of the door 32 days short of the 20/55 MR75 Rule."

I was informed it happen to 2 other people that had the same issue being let go just a month or two before making it to modified 75 rule. They hired an attorney and the company allowed them to work that short time needed to make it to the modified 75 rule.

Yes. I will add that many of those being surplused with 18+ years service are being offered to be placed on a LOA until they reach the 20 year mark so that they can collect benefits at that time (or take the severance now & go).

T pushed me out of the door 32 days short of the 20/55 MR75 Rule.

https://blog.acadviser.com/hs-fs/hubfs/Blog_images/751.png?width=1210&name=751.png

Here is the answer to your question about the MR75 table

Where do you find the Southeast MR 75 Modified Rule parameters?

Questions for @ZlTntQ2-1ujz......what was your title when you retired? What company did you start with, Bellsouth, SBC, ATT??????????? When did you start with one of these companies? All this does make a difference. If you started with ATT, people get nothing. If you started with the company before 1997 you get something, but very little. If you had 15 years prior to 2001 your chances of insurance discounted are higher.

In the SE soon after the friendly acquisition of BellSouth by at&t, the SE rule of 75 was changed to MR75 (Modified Rule). Under the original rule when your age and years of service equal 75, then you could retire with medical, concessions, and your monetary benefits.

MR75 has a table where you must have specific years + age.

Was there 17 years. Age 51. Got surplussed in Jan 2019 and received my full pension

I'm happy with my retiree benefits. I took individual SelectMed Opt 3 -UHC, and pay nothing in premiums. This is for healthy individuals with a high deductible. However, I get my annual physical and can access "in network" resources to avoid price gouging. So far, so good. I treat medical as bankruptcy protection.

Dental is the DHMO at $2.57/month. That's less than what I was paying as an active employee. Vision, $3.64/month. Care Plus $0.00. Life insurance (burial insurance) $0.00. My total costs are $6.21/month.

Randall seems committed to covering the employee. The family - not so much. I notice recent bargaining includes a demand for a surcharge for spouses eligible for coverage from their employer, but piggybacking on AT&T benefits and waiving coverage from their employer.

But, my experience with AT&T is, good health means retirement is quite doable.

Post ID: @ZlTntQ2-1clf said:

Yes, I received my full pension

Thanks for the reply. May I ask your age/years combo when you quit?

Also, the post-retirement perks didn't do it for me either. So I quit with the severance at 63/17

Never looked back.

Your question is:

"Let suppose these three non-bargained people are going to reach 20 service years on their 56th, 60th and 64th birthdays respectively.

The rule sums are 76, 80 and 84 with 20 years of service.

Do these folks qualify for a full "service pension" & retirement perks or merely a "vested pension?"

Answer:

Yes, I received my full pension, but retirement perks are a lot worse than being employed and getting an employee discount along with Medical copay more than doubles & Dental rates increase by 50% higher. I gave up my medical coverage, cell service and became a cord cutter. Like AT&T I need to watch my bottom line. Vested pension -The entitlement of an employee to receive the full benefit of a pension at normal retirement age or a reduced pension upon early retirement even upon change of employer before retirement.

For your own situation, it's best to run the age/years simulations on the Fidelity website.

I do have a question and I am hoping that someone (non-bargained) can run one (if it fits their case) or give the answer from experience.

Let suppose these three non-bargained people are going to reach 20 service years on their 56th, 60th and 64th birthdays respectively.

The rule sums are 76, 80 and 84 with 20 years of service.

Do these folks qualify for a full "service pension" & retirement perks or merely a "vested pension?

My guess is no to the first, but I'm not positive. If my guess is correct the rule appears to be a cheat.

What's the right answer? Thanks

In management company contribution to pensions ended over 11+ years ago. Once you reach your 75 modify rules you get more pay waiting longer because you are closer to your end of life and I was told you the monthly pay calculations is based on how many years of life expectantly years you have left. All your pension amounts and calculations can be found out by calling your 401k advisor. Non management makes a lot more in pension than management.

@ZlTntQ2-zqi you are partially correct but.... I'm speaking from a management perspective here....and also speaking only of the annuity amount, not the actual cash value which some of us have in our pensions to some degree as the pension plans have changed over the years.

If you retire before certain breakpoints, there are "multipliers" applied to your payout which reduce the payout amount. For example, let's say someone retires at 50 with 27 years of service. They've even reached MR75; however, there is a major breakpoint (for many employees) at 30 years. That person CAN retire and CAN receive their pension at 50/27, but there's a "penalty" of sorts applied to it so that it's significantly less than if they retired at 30 years service

In fact, if that same person waited to retire until 52 years and 364 days, just one day shy of their 30th service anniversary, the payout would be MUCH LESS than if they waited just one more day. It has to do with that multiplier.

If you have access to tSpace, go to the Your Money Matters forum and look for a thread that says something like "What happens to the pension at age 50?" A lot of people chipped in to kind of solve this mystery. I didn't understand it fully myself. The table of multipliers is buried way in the back of the pension plan documentation.

The modified rule of 75 has been around since god invented AT&T. Mainly starts after 50 years of age, or 30 years of service. What you receive, may fluctuate depending on if you are management or bargained craft. Bargaining agreement dictate what those covered under that contract recieve and when. For the most part bargained craft who have not attained the 75 when they leave can begin drawing pension at 65. It mainly dictates health benefits and product discounts.. for some it doesn’t matter because as part of agreement when att bought them they get nothing.

In the west you need to be 50 and have 25 years of service or be 55 and have 20 years of service or 65 and have 10 years of service to get your medical which of course you still have to pay for but the pension is yours at whatever age but the more years you have and your age is what determines how much your pension is.

Sure you can leave before 20years, but in my case I lose 180k if I left at 19years!! go 1 more yr = 180k more like 325k total for a craft Retirement at 20years.

This is a fairly good explanation.

http://blog.acadviser.com/answers-to-5-common-att-retirement-questions

Under my contract, if one met the rule of 75, they do qualify for medical benefits. Then there are different rules depending on whether the pension is a "traditional" pension, or a cash balance arrangement. Best thing to do is read the Pension summary plan description (SPD) for your particular title. In particular, pay attention to a pension reduction applies if retirement is taken before age 55,

You are wrong. The rule of 75 is what gets you the benefits. You can get your pension at anytime like the other poster stated. Obviously the longer your here and the older you are the more money you get.

JFC, you don't need to officially retire to get whatever money is in your pension. The T pension doesn't work that way, you're already vested in it, the money is yours if you quit tomorrow.

Here y’all go.

Actually, the rule of 75 has two requirements. You need to have 20 years and be at least 50. For example, if you are 50 and only have 20 years, you need to get 5 more to be eligible. But, if you are 50 and have 25 you are eligible for the lump sum only, with NO medical benefits. To get the medical, 30 years is the key.

You mean if they hire a guy who's 75 years old tomorrow, he can't quit the next day and get a full Pension?