Participants of our traditional Cash Balance pension plan at Frontier and AT&T (Legacy T) are Bargained Employees of East Core CWA (excluding Appendix F of the East Core CWA contract) hired or rehired before August 9, 2009. This pension plan has a Cash Balance Formula and the interest credits are the greater of the (a) 30- Year US Treasury rate from prior November and (b) Minimum 4.00%
As you may have seen lately in the news, the 30-Year US Treasury Rate has been climbing over 4%. This rate will be determined by the average rate for the month of November, and will be published on 12/15/2023. It is very likely that the rate will exceed 4%, if so, this interest rate will be reflected in our pension accounts in January 2024. I have already reached out to our employers to make sure they are aware of this and that they ensure Milliman and Fidelity are prepared to make this change in January 2024. **The rate that will be used for interest credits for 2024 is 4.66%**
Milliman will have this update with the January 2024 deposits which you will be able to see in your account on line by 1/15/2024.
FYI: Participants in our Bargained Cash Balance Program #2 are Bargained employees hired into Appendix F of the East Core CWA contract and Bargained Employees hired after August 8, 2009 in the AT&T East Core CWA contract. This pension plan has interest credits already at 4.5%
Frontier new hires, hired after October 16, 2021, do not participate in either pension, instead, they have an enhanced 401(k) Savings Plan of 100% of the eligible contributions up to 6% of eligible compensation.
If you have any questions, you can email me at lgibson@cwa1298.org or call/text me at 203 206-0821
