Monday, August 31, 2009

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.