Monday, August 31, 2009

Q4 PBGC drops to 3.0%!!

Q4 PBGC posts a dramatic drop to 3.0% from 3.75% in Q2. This is yet another reason to run pension estimates in the month of September!!

It may be a week or more before the VZ Benefits Center has the new GATT Rate updated in their system. If you would like Harris Financial Group to provide you with an unofficial estimate while you await the official number from the benefits center, please call us at (800) 281-3980.

30 Year Treasury Yield at 4.18% Today; The Fourth Quarter GATT Rate is 4.373%

Critical month of August results in only a modest increase in the GATT rate from 4.23% to 4.373%. Taken alone. this 14 basis point move will produce slightly lower lump sum values for those working into Q4; however, the 3.5% pension band increase(PBI) slated to go into effect on October 01, 2009 should help to ameloriate the small decrease in lump sum values. In fact, it is likely that lump sums will actually increase in Q4 because the PBI benefit is greater than the loss created by the increase in rates!!
We encourage you to run your benefits estimate to verify the differential in Q3 versus Q4 prior to September 15 to make certain you have sufficient time to react if you want to leave prior to October 01.

For all of those people who are trying to get to Q1 2010, we are one step closer!!


It may be a week or more before the VZ Benefits Center has the new GATT Rate updated in their system. If you would like Harris Financial Group to provide you with an unofficial estimate while you await the official number from the benefits center, please call us at (800) 281-3980.

Friday, August 28, 2009

GATT at 4.21% Today; Monthly Average Drops Below 4.4%

With one trading day left this month, it looks like the August GATT Rate may settle slightly below 4.4%. All things considered, this is a vast improvement over what we saw earlier in the month.

It may be a week or more before the VZ Benefits Center has the new GATT Rate updated in their system. If you would like Harris Financial Group to provide you with an unofficial estimate while you await the official number from the benefits center, please call us at (800) 281-3980.

Thursday, August 27, 2009

GATT Closes at 4.23% on Thursday

As we approach the end of August, the GATT Rate closed at 4.23% today. Remember, it is the monthly average that we want to watch.

We'll be posting the monthly average for the GATT no later than September 1st for all who may be interested.

If you have met with us or spoken with us in the past week, there have been no meaningful changes since then. If you have not yet spoken with us, please give us a call so that we can provide you with the information that you need. Call Harris Financial at (800) 281-3980.

Tuesday, August 25, 2009

Attention AT&T

We have had lots of calls from AT&T folks asking about the GATT rate. According to the CWA, the Pension Protection Act (PPA) Rate will be phased in 25% of the next four years until it completely replaces the GATT rate. If, however, during the life of this contract(until April 1, 2012), the GATT rate produces a higher lump sum than the combination of the PPA and GATT, then you receive whichever rate produces the highest lump sum for you.

Although this is a big change for you, you have the opportunity to see the difference the PPA rate produces without enduring its pain until 2012.

Please note, this post pertains to the AT&T Pension plan and contract. Verizon employees should not apply the information contained in this post to their own situation.

GATT Drops to 4.23%

It's looking more and more like the August GATT Rate isn't going to be as bad as it looked in early August. This is good news for anyone hoping to retire in the 4th Quarter, even though the August GATT will be higher than May's rate. Please call Harris Financial with any questions, (800) 281-3980 or (804) 526-0544.

Saturday, August 22, 2009

GATT Rate Back Up to 4.36%

The week ended with the GATT Rate back up to 4.36%. We have six more trading days to determine what the average will be for August.

Thursday, August 20, 2009

72(t) Rate on the Rise!

Here is a link to the latest Revenue Ruling from the IRS about the mid-term applicable federal rate that is used to calculate 72(t) retirement income payments. For more information about how much retirement income you might have, please contact Harris Financial at (800) 281-3980 or (804) 526-0544.

GATT Drops Again

Today's yield on the 30-yr. Treasury bond fell to around 4.24%.

Wednesday, August 19, 2009

GATT Rate Drops to 4.294%

Today's yield on the 30-yr. Treasury bond fell to 4.294%. This is good news for those of you considering the October 31st EISP package or for anyone considering retiring in the 4th Quarter of 2009. It is still too early to determine what the final monthly rate will be for August, but it is looking like the steep decline many of you saw on your lump sum amounts from June to July will not be repeated this time around. Stay tuned...

If You Have the October 31st EISP Package...

Please feel free to call Harris Financial Group for a low-pressure, no obligation consultation about your retirement options. We can discuss with you such important topics as:

1) How does the GATT Rate affect your buyout?
2) How much retirement income will you have?
3) What paperwork will you need to complete in order to retire?
4) What investment choices are available to you, and how much do they cost?

Please call Jamie, Carl or Steve at (800) 281-3980 or (804) 526-0544. We are scheduling appointments throughout the Verizon Mid-Atlantic footprint and would appreciate the opportunity to speak with you about your retirement!

Tuesday, August 18, 2009

GATT Rate Edges Higher to 4.365%

Not a big change on the 30-yr. Treasury yield today.

If you have been offered one of the latest October 31st EISP packages, please call Harris Financial Group at (800) 281-3980 or (804) 526-0544 to discuss the GATT Rate that will be used to value your lump sum pension amount. Or, if you are still debating about whether to take the September 12th offer, we can provide information on that as well!

Monday, August 17, 2009

GATT Rate Ticks Lower to 4.35%

So far so good for this week's GATT Rate watch. The yield on the 30-yr. Treasury bond dropped to 4.35%. With 11 more trading days left in August, it's still too early to make a call on lump sum amounts for the 4th Quarter of 2009.

Friday, August 14, 2009

Week Ends with GATT Rate at 4.41%

The rate has headed lower over the past few trading sessions. This trend will need to continue in a big way for the monthly average to approach May's 4.23% rate. By the end of next week, we should have a much better idea of what the August average is shaping up to be.

Thursday, August 13, 2009

Chart of August vs. May GATT Rates

With today's GATT Rate closing at 4.43%, here's an updated chart comparing May's rate to the current month of August:

Re-Post on 72(t) Retirement Distribution Rates

Here is our post from July 22nd that many of you will want to consider for how much retirement income you can potentially withdraw without penalty. We should have an update on the latest rates within about a week:

Mid-Term AFR Rises for August

The Treasury has published the Mid-Term Applicable Federal Rate for August. The rate now stands at 2.80%, up slightly from 2.76%.

This rate is significant because it is used in the calculation of IRS 72(t) payments. In this context, a rising rate generally allows someone to set a higher initial 72(t) withdrawal amount, provided it is prudent and suitable to do so.

Here is a link to the IRS Revenue Ruling listing the new rate.

For more information on how this rate might impact you, please call Harris Financial Group at (800) 281-3980.

Wednesday, August 12, 2009

GATT Rate on the Rise Again

Today's yield on the 30-yr. Treasury closed at 4.52%.

The unofficial running average for the month of August so far is 4.51%.

Remember that this month's rate will be used for lump sum pension buyouts that use benefit commencement dates in October-November-December 2009. The rate that is in effect for the September 12th EISP is May's more favorable rate of 4.23%.

We have enjoyed meeting and speaking with those of you who are thinking about retiring with this offer. We're available to answer any questions you may have about your retirement options. Please call us at (800) 281-3980 or (804) 526-0544.

Tuesday, August 11, 2009

GATT Rate at 4.45% on Tuesday

The monthly average for August continues to drop slightly as the yield on the 30-yr. Treasury bond dropped to 4.45%.

Monday, August 10, 2009

GATT Rate Drops Slightly to 4.53%

Monday's yield on the 30-yr. Treasury dropped to 4.53%. Although this is still well above the May rate of 4.23% (which will be in effect for the September 12th EISP), it was nice to see the rate drop a little bit after a pretty sharp jump last week.

We are roughly 1/3 of the way to determining what the monthly average for August will be. Please continue to check this website for updates, or call Harris Financial at (800) 281-3980 or (804) 526-0544.

Friday, August 7, 2009

GATT Rate Ends the Week at 4.60%

Friday's closing yield on the 30-year Treasury Bond was 4.60%, the highest rate thus far in August.

Thursday, August 6, 2009

GATT Rate Settles at 4.52% today

The GATT Rate (yield on the 30-yr. Treasury Bond) settled close to 4.52% today. Although slightly lower that Wednesday's yield, the rate is still well above May's rate of 4.23%. For more information about how this may affect your pension, or if you have questions about Verizon's latest EISP offer, please call Harris Financial Group at (800) 281-3980 or (804) 526-0544.

Wednesday, August 5, 2009

Yield on 30-yr. Treasury (GATT Rate) Rises to 4.56%

The yield on the 30-yr. Treasury Bond closed at 4.56% today.The rate from May (4.23%), which will be used to value lump sums for anyone accepting the September 12th EISP offer, appears to be more attractive than the 4th Quarter rate (August) at this point. A lot can change over the course of the next few weeks, and since you do not have to make a retirement decision until August 29th, please continue to check this site or call Harris Financial Group at (800) 281-3980 or (804) 526-0544 with any questions.

Tuesday's Yield on 30-yr. Treasury Bond is 4.46%

The yield on the 30-yr. Treasury Bond closed at 4.46% Tuesday. The rate continues to head in the wrong direction for those of you considering retiring in the 4th Quarter of 2009. The rate from May (4.23%), which will be used to value lump sums for anyone accepting the September 12th EISP offer, appears to be more attractive than the 4th Quarter rate at this point. A lot can change over the course of the next few weeks, and since you do not have to make a retirement decision until August 29th, please continue to check this site or call Harris Financial Group at (800) 281-3980 or (804) 526-0544 with any questions.

Monday, August 3, 2009

August is Here! Yield on 30-yr. Treasury Closes at 4.42% on First Day of August Trading

The yield on the 30-year Treasury closed at 4.42% today, the first trading day in August. If you have been following our blog, you know that August is the month that will set the GATT Rate for 4th Quarter 2009 retirements. So far, the rate is well above the rate currently in effect for the 3rd Quarter (4.23%). Unless something changes drastically over the next few weeks, it is likely that pension lump sums will be lower in the 4th Quarter than in the 3rd Quarter. We’ll be following the changes in the interest rate very closely on this blog. If you have any questions about this or any other aspect of your retirement, please call Harris Financial Group at (800) 281-3980 or (804) 526-0544.