Pension Deferral Information
Published by Dave Skotarczyk [Dave Skotarczyk] on 2009/2/11 (130 reads)
PENSION DISTRIBUTION - LEAVING PAYROLL BEFORE 12/31/xx
Prior to 2005; we had 60 days to request a Lump Sum, but today that IS NO LONGER TRUE. The 2004 Collective Bargaining Agreement [Election Period – Page 253/254] eliminated that limitation.
The only limitation we now have electing a lump sum is the need to do so before Age 65.
An Employee can leave the payroll prior to 12/31; and defer their lump
sum election until the following year [or after; as long as they do so
prior to age 65].
In this case; the employee is entitled to receive the GATT Rate, Age and Mortality Table in effect for the year the lump sum is distributed.
Pension band increases for the following year[s] DO NOT APPLY.
Entitlement to vacation for the following year’s DO NOT APPLY.
GATT Rate
The GATT rate needs to be declared/announced by ATT before it is
official. We do not yet have the declared rate and neither does Fidelity.
The 2007 GATT rate was 4.69% - 2008 GATT rate is currently 4.52%
When the GATT rate goes down; lump sum values go up. If the rate goes up; the lump sum value goes down.
RETIREMENTS 1/1/xx [when possible] In order to gain next years GATT rate, next years pension band increase and next year’s vacation; an employee must declare their last day on payroll as 1/1/xx or after.
RETIREMENTS 12/31/xx [when possible]
The 12//31/xx date is used as the last day on payroll when the employee wants the current year’s GATT Rate and next years vacation*; however they are not entitled to any band increase for the following year.
*Vacation Year – Defined in Article 2 as Dec 31 – Dec 30. Legacy SBC
policy is that an employee has to work one day into the vacation year to gain access to.
2009 PENSION BAND INCREASE
There is a pension band increase effective 1/1/09 @ 2.25% + applicable
cola.
Prior to 2005; we had 60 days to request a Lump Sum, but today that IS NO LONGER TRUE. The 2004 Collective Bargaining Agreement [Election Period – Page 253/254] eliminated that limitation.
The only limitation we now have electing a lump sum is the need to do so before Age 65.
An Employee can leave the payroll prior to 12/31; and defer their lump
sum election until the following year [or after; as long as they do so
prior to age 65].
In this case; the employee is entitled to receive the GATT Rate, Age and Mortality Table in effect for the year the lump sum is distributed.
Pension band increases for the following year[s] DO NOT APPLY.
Entitlement to vacation for the following year’s DO NOT APPLY.
GATT Rate
The GATT rate needs to be declared/announced by ATT before it is
official. We do not yet have the declared rate and neither does Fidelity.
The 2007 GATT rate was 4.69% - 2008 GATT rate is currently 4.52%
When the GATT rate goes down; lump sum values go up. If the rate goes up; the lump sum value goes down.
RETIREMENTS 1/1/xx [when possible] In order to gain next years GATT rate, next years pension band increase and next year’s vacation; an employee must declare their last day on payroll as 1/1/xx or after.
RETIREMENTS 12/31/xx [when possible]
The 12//31/xx date is used as the last day on payroll when the employee wants the current year’s GATT Rate and next years vacation*; however they are not entitled to any band increase for the following year.
*Vacation Year – Defined in Article 2 as Dec 31 – Dec 30. Legacy SBC
policy is that an employee has to work one day into the vacation year to gain access to.
2009 PENSION BAND INCREASE
There is a pension band increase effective 1/1/09 @ 2.25% + applicable
cola.
