It’s not uncommon for many employees to take some time away from a company and then return later. Often this is done for personal issues, like the declining health of a close relative. Sometimes employees simply want to pursue another opportunity elsewhere and then choose to return to their original company later on.
Are you Craft or Management? Have you taken an extended leave from the company and come back thus bridging your service? Did AT&T give you a new NCS date? Well anytime you are dealing with bridging issues, it can complicate your pension calculations. Often Fidelity will not be able to provide you a pension estimate online and you’ll have to order manual calculations.
There are various rules regarding bridging. One important thing to know is that if you leave the company and come back, your NCS is not instantly credited from the day you return. There is a waiting period until you can take credit for your years of service during your second tenure.
In terms of changing from Craft to Management, or vice versa, you will end up with two pensions and two 401(k)s. It’s important to find a financial advisor who will help you maximize every account that you have and not leave anything out.
Sources:
- The Retirement Group or www.theretirementgroup.com
- “Retirement Plans-Benefits & Savings.” U.S. Department of Labor, 2019, www.dol.gov/general/topic/retirement.
- “Generating Income That Will Last throughout Retirement.” Fidelity, 22 Jan. 2019, www.fidelity.com/viewpoints/retirement/income-that-can-last-lifetime.
