March 2024 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	March	4.99%	5.19%	5.37%	AT&T PENSION BENEFIT PLAN
AT&T	All	2023	March	5%	5.2%	5.15%	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.

Featured Video

Articles you may find interesting:

8 Tenets of Choosing a Mutual Fund

Use of Escrow Accounts: Divorce

Section 303 Stock Redemption Buy-Sell Agreement

Medicare Open Enrollment Is Here: How Are Costs Changing for 2023?

2022 High Net Worth Tax Planning

Policy Roadmap

Section 179 Deductions

Learn About the Path to Retirement

Contemplating Change: 7 Key Factors When Considering a Transition from Your Company

How Are Workers Impacted by Inflation & Rising Interest Rates?

Lump-Sum vs Annuity and Rising Interest Rates

Advice for Retirees Trying to Survive a Bear Market

5 Most Important Things to do Before Leaving Your Company

Internal Revenue Code Section 409A (Governing Nonqualified Deferred Compensation Plans)

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

Other Articles of Interest

Articles Relevant to AT&T Employees

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	March	4.99%	5.19%	5.37%	AT&T PENSION BENEFIT PLAN
AT&T	All	2024	February	4.97%	5.22%	5.37%	AT&T PENSION BENEFIT PLAN
AT&T	All	2024	January	4.89%	5.14%	5.29%	AT&T PENSION BENEFIT PLAN
AT&T	All	2023	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

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.

Company:
AT&T*

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