The interest rate used by the AT&T (BellSouth) pension plan for employees retiring during the year of 2016 is:
(Compared to a 2015 rate of 3.04%)
*According to www.irs.gov
The pension plan Administrator changed from Aon Hewitt to Fidelity Service Center in January of 2013. That change should not have affected your pension benefit in any way. However, there were a few pension calculations that were several thousand dollars lower than they should have been. Those we have found so far have since been corrected
Due to that change and the potential for errors caused by interest rate changes at year-end, it is critical that you document your pension estimates as soon as possible. Call us and we will be glad to help you document your lump sum estimate. Having proper documentation of your pension benefit is the best way to correct any errors that may occur during this transition.
The GATT rate for 2016 is moving down very slightly from 3.04% to 3.02%. This, by itself, will not cause any changes in the lump sum calculation for either the Craft Pre-99 pension benefit, or for the Management BSMPP.
That is because the GATT rate is no longer used in those calculations – going forward, only the PPA rate (PPA = Pension Protection Act) will be used. The PPA rate is typically higher than the GATT rate, and normally results in lower lump sum estimates.
The GATT rate will continue to be used for the Craft Cash Balance, and for the Management PRA calculations.
At Sound Financial Strategies Group, we have made a commitment to AT&T employees. We provide financial education through our workshops. We also work with you one-on-one helping you manage your 401(k) savings plan and plan for your retirement.
Please give us a call at 601-856-3825 or 877-462-3744 and one of our advisors will be happy to meet with you and help you plan this year and for the years ahead.
Investment advisory services offered through Sound Financial Strategies Group, Inc.("SFSG"), a Registered Investment Adviser. Securities offered through Comprehensive Asset Management and Servicing, Inc., ("CAMAS") Member FINRA/SIPC. SFSG and CAMAS are separate and unrelated companies. Neither SFSG nor CAMAS are endorsed by, retained by, or affiliated with AT&T.
Posted on Wed, December 9, 2015
by Sound Financial Strategies Group