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December 2023 Interest Rates used for AT&T employees


Company Name For plan years beginning in Year Month First Segment Second Segment Third Segment Plan Type
AT&T All 2024 December 5.01% 5.13% 5.15% AT&T PENSION BENEFIT PLAN
AT&T All 2022 December 4.84% 5.15% 4.85% AT&T PENSION BENEFIT PLAN

Many AT&T employees who are waiting to commence their pension lump-sums, are now seeing a significant decrease in their value. When these interest rates move up or down, your lump sum amount will move in an inverse direction, so if interest rates increase, your lump sum amount will decrease and vice versa. Through the pandemic, interest rates dropped dramatically which greatly increased many lump sum payments. However, since then this trend has shifted, as interest rates have been increasing rapidly, causing a large reduction in pension lump-sum values.

Large increases in interest rates are important if you decide to take the lump-sum option since the calculation for your lump-sum is based on interest rates and your age. Your pension will be calculated based on your last date of employment and benefits start date.

How Do Rate Changes Affect Your AT&T Pension?

Pension pricing is based on interest calculations, which means an adjustment in your retirement date may lead to avoiding a serious financial hit, due to avoiding times with high-interest rates.

Everything else held equal, a higher interest rate will produce a lower lump sum. The exact changes depend on your specific age, but on average a 1% change in rates can equate to an 8% to 12% change in lump sums. On average, a 1% change could increase or decrease your pension lump sum by roughly 10%.

It's important to note that you don't have to commence your pension immediately after you retire. If you wish to delay your commencement you have the ability to defer it until a later date.

Given the current interest rate environment, we highly suggest AT&T employees discuss their options with The Retirement Group and allow us to monitor the rates and keep you up to date on the monthly changes. We can provide a complimentary cash flow analysis to show you how various retirement dates may play out.It is important to remember that every situation is unique and that by getting a cash flow analysis you'll be able to compare different types of pensions and find the best fit for your situation.

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The Retirement Group is not affiliated with nor endorsed by AT&T. We are an independent financial advisory group that focuses on transition planning and lump sum distribution. Neither The Retirement Group or FSC Securities provide tax or legal advice. Please call our office at 800-900-5867 if you have additional questions or need help in the retirement planning process.

Securities through FSC Securities Corporation, member FINRA/SIPC and investment advisory services offered through The Retirement Group, LLC, a registered investment advisor not affiliated with FSC Securities Corporation. Office of Supervisor Jurisdiction: 5414 Oberlin Dr #220, San Diego CA 92121. 800900-5867

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Full Interest Rate update table for AT&T employees

Company Name For plan years beginning in Year Month First Segment Second Segment Third Segment Plan Name
AT&T All 2024 December 5.01% 5.13% 5.15% AT&T PENSION BENEFIT PLAN
AT&T All 2023 November 5.5% 5.76% 5.83% AT&T PENSION BENEFIT PLAN
AT&T All 2023 October 5.77% 6.14% 6.19% AT&T PENSION BENEFIT PLAN
AT&T All 2023 September 5.58% 5.66% 5.56% AT&T PENSION BENEFIT PLAN
AT&T All 2023 August 5.45% 5.52% 5.43% AT&T PENSION BENEFIT PLAN
AT&T All 2023 July 5.35% 5.28% 5.1% AT&T PENSION BENEFIT PLAN
AT&T All 2023 June 5.26% 5.23% 5.16% AT&T PENSION BENEFIT PLAN
AT&T All 2023 May 4.91% 5.15% 5.34% AT&T PENSION BENEFIT PLAN
AT&T All 2023 April 4.77% 4.97% 5.13% AT&T PENSION BENEFIT PLAN
AT&T All 2023 March 5% 5.2% 5.15% AT&T PENSION BENEFIT PLAN
AT&T All 2023 February 4.99% 5.12% 4.96% AT&T PENSION BENEFIT PLAN
AT&T All 2023 January 4.74% 4.98% 4.84% AT&T PENSION BENEFIT PLAN
AT&T All 2022 December 4.84% 5.15% 4.85% AT&T PENSION BENEFIT PLAN
AT&T All 2022 November 5.09% 5.6% 5.41% AT&T PENSION BENEFIT PLAN
AT&T All 2022 October 5.1% 5.83% 5.68% AT&T PENSION BENEFIT PLAN
AT&T All 2022 September 4.48% 5.26% 5.07% AT&T PENSION BENEFIT PLAN
AT&T All 2022 August 3.79% 4.62% 4.69% AT&T PENSION BENEFIT PLAN
AT&T All 2022 July 3.67% 4.67% 4.73% AT&T PENSION BENEFIT PLAN
AT&T All 2022 June 3.64% 4.8% 4.78% AT&T PENSION BENEFIT PLAN
AT&T All 2022 May 3.23% 4.59% 4.69% AT&T PENSION BENEFIT PLAN
AT&T All 2022 April 3% 4.22% 4.17% AT&T PENSION BENEFIT PLAN
AT&T All 2022 March 2.44% 3.71% 3.94% AT&T PENSION BENEFIT PLAN
AT&T All 2022 February 1.88% 3.35% 3.7% AT&T PENSION BENEFIT PLAN
AT&T All 2022 January 1.41% 3.02% 3.36% AT&T PENSION BENEFIT PLAN

If you have questions about a potential AT&T surplus or would like more information you can reach the plan administrator for AT&T at p.o. box 132160 Dallas, TX 75313-2160; or by calling them at 210-351-3333.

Per the IRS, for ATT INC. plan years beginning after December 31, 2007, the applicable interest rates under Section 417(e)(3)(D) of the Code are segment rates computed without regard to a 24 month average. We Recommend that you call ATT INC. at 210-351-3333 For plan years beginning in 2008 through 2011, the applicable interest rate is the monthly spot segment rate blended with the applicable rate under Section 417(e)(3)(A)(ii)(II) of the Code as in effect for plan years beginning in 2007. For plan years beginning in the stated year, the rates above are the applicable interest rates for the month and year listed for minimum present value computations under Section 417(e)(3)(D) of the Code for ATT INC.

Disclaimer: Securities offered through FSC Securities Corporation, member FINRA/SIPC. Investment advisory services offered through The Retirement Group, LLC. a registered investment advisor not affiliated with FSC Securities Corporation. *We are not affiliated with or endorsed by AT&T. This message and any attachments contain information, which may be confidential and/or privileged, and is intended for use only by the intended recipient. Any review, copying, distribution or use of this transmission is strictly prohibited. If you have received this transmission in error, please (i) notify the sender immediately and (ii) destroy all copies of this message. The Retirement Group, LLC is registered to conduct advisory business in the following states:  AZ, CA, CO, FL, ID, IL, IN, LA, MD, MI, MO, NE, NV, NJ, NY, NC, OK, OR, PA, SC, SD, TX, UT, VA, WA. Office of Supervisory Jurisdiction: 5414 Oberlin Dr #220, San Diego CA 92121 (800) 900-5867

Company:
AT&T*

Plan Administrator:
p.o. box 132160
Dallas, TX
75313-2160
210-351-3333

*Please see disclaimer for more information