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Pension Band Increases - FYI |
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Friday, 02 October 2009 13:20 |
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While no one yet knows what the GATT Interest Rate will be until it is officially announced (around the first week in December); it appears likely that the GATT rate will go up for the 2010 year. If memory serves me right, this will be the first time the GATT Rate actually increases (if it does).
REMEMBER: An increase in the GATT Interest Rate means less dollars on a cash pension distribution (lump-sum). The GATT rate does not impact the monthly pension annuity at all.
In the event the interest rate goes up; those considering retirement will likely want to know this years pension cash value at today's rate (4.0 %) with no pension band increase or next years cash out with a 2% pension band increase, but a higher GATT Interest Rate.
The Fidelity Pension Plan calculator should be updated to reflect the newly negotiated pension band increases mid to late November 2009, but definitely by December 1, according to ATT. The new GATT rate is normally programmed by mid-December.
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