Gatt rate went down from 3.02 to 2.82 for the 3rd quarter 2019. That means everyone’s lump sum buyout just went up! This is good news for those wanting to retire soon.
22 replies (most recent on top)
PBGC rate is the rate that will determine for your lump sum... The GATT rate is used as a calculation too... but only for comparison, as it will almost never beat the PBGC based lump sum. You guys are talking about the GATT dropping from 3.02% to a 2.63% as if that is going to make some big difference. It won't have any effect on your lump sum... Sure the Calc for the GATT Lump Sum balance will increase as the rate drops from 3% to 2.6% ... but it that Lump Sum figure will be 10's of THOUSANDS of dollars LESS than the PBGC Lump Sum, and therefore completely irrelevant. The PBGC rate dropped from 1.25% to 1% in April and stayed there in May... on Monday you'll find it likely stays there for June as well, which is good news for those planning to retire in July. Verizon runs a few months behind the current rate... so if they haven't already, by July the April rate drop should kick in. The GATT calculation lump $$ figure will go up a lot more on a rate drop from 3 to 2.6%, than the PBGC Lump $$ will go up on a drop from 1.25 to 1.0.... However... the PBGC LUMP sum figure will still be $40-100k higher than the GATT figure regardless... (Depending on how much you are getting)
Even with Verizon adding 20% to the published PBGC figures. ie: 1.25% = vz1.50% and 1% = vz1.2%..... Note if the PBGC drops to 0.75% = vz0.90% << This has happened b4 when the GATT approached 2.5% and is a real winner. Maybe if the PBGC goes much ABOVE 2%... then a 2.63% GATT might win.... but that's not likely any time soon And the last time the PBGC was in the mid 2’s the GATT was well over 5%, so PBGC still won.
Remember you don't have to actually take your Pension lump sum in July, if you leave in June. So if you see rates are dropping... you can wait as long as you want... and with 60weeks of pay in the bank up front you have all kinds of flexibility on setting the date you pull the pension that most people never get. (PBGC rates are supposed to be set on the 15th, but sometimes go as late as the 20th)
Consider this link your best friend, if you’re getting ready to take the lump sum...
https://www.pbgc.gov/monthly-interest-rate-archive
Historically the PBGC had been the winning rate. I have to do mine by phone as I have a QDRO separate interest for the ex. I've done it a few times and they always use the GATT.
Why is the PBGC rate never considered? Is GATT the only rate for managers and bargained for has option of either or is the GATT always winning vs PBGC?
because, after years of toiling @5qoc, it's only natural to want to stop working and retire.
I live and work in New York and almost everyone I work with talks about retiring and moving out of the state. Hmmmm, I wonder why?
Verizon benefits site is always behind. Wait until the third quarter starts and it will show the correct rate....which is 2.82.
What makes the GATT rate change?
I did a 3 month estimate today and the monthly gatt rate for 9/1 commencement was 2.94%
not true, GATT rate did not change for 3rd quarter. staying at 3.02, just checked Verizon benefits.
What about the Fatt Rate? Thats been going up for years. Don't you have to be obese to be in the union?
Better check again! It was released by the union via email to its members.
gatt rate didn't go down for 3rd quarter.
a boon too
The gatt rate is 2.63% on 6-5-19 which is a boom on the lump sum. They will give you the best rate either the quarterly avg or current whichever is lowest..still only rumors on an eisp
I’m seeing 3.02 right through August
I found the address of the troll cave! Hope this helps you find your way back to the cave:
80 Pine Street, 37th Floor New York, NY 10005
@1wv Get back in your cave troll!
I made a $120,000 since January in my 401k. Its great! Love the 6% match and profit sharing!
You are correct that it is one of three rates used but important to note that the one most favorable to the employee is the one used.
@svg I've already heard from my financial advisor. She said my buyout went up.
If the GATT rate goes down, it may increase lump sum buyouts but not necessarily. GATT is one of 3 rates they use to determine lump sums and they use the most favorable of the 3.
Now all we need is to be declared surplus and offered an EISP ;)