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Tuesday
Dec132016

2017 Corp Bond Rate

 

To: All AT&T Union Members

 

Today corporate bond rates were published.  The new corporate bond rates affect the value of AT&T lump sum pensions, which will change in the 2017 calendar year. 

The US Congress authorized employers with defined benefit pensions to change the calculation formula for lump sums, phasing out the “GATT Rate” that had been used for many years, and replacing it with a new set of interest rates.  The phase-out happened at AT&T over a four (4) year period from 2011 to 2014.  The GATT rate is now gone – only the corporate bond rates are used. 

As a general rule, higher interest rates lead to lower lump sum values.  But changes in rates will affect each of you differently. 

It is recommend that you discuss your pension and/or retirement options with a financial professional.

Below are the Corporate Bond Rates for 2015, 2016 and 2017.

 

Segment

2015

2016

2017

Tier 1

1.40%

1.76%

 

1.79%

Tier 2

3.88%

4.15%

 

3.80%

Tier 3

4.96%

5.13%

 

4.71%

 

In Unity,

Gary Kundrat, President
David Passalacqua, Executive Vice President
Linda Burns, Secreatary/Treasurer

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