Communicating the impact the impact that GATT has on lump sum payments

[Guest Susan Middaugh]

I'd be interested in hearing from others who have faced this issue in employee benefits education/communication-- what worked, what didn't, any advice, etc. I am a free-lance writer with the assignment of informing active employees and terminated vested employees about changes in lump sum distributions in terms of the discount rate and the change in mortality tables. This is a complicated subject which usually makes people's eyes glaze over.

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Susan

[Guest Anne V]

Good Luck! This is a toughie!

AS I understand it, these changes mean than retirement plans are using less generous rates in calculating how these lump sum benefits are determined. Typically employers don't usually get into how the calculation is done...they just tell people what the dollar number is.

I'd recommend connecting with an actuary who can provide a good, "layman's" explanation of what's going on. And including a sample of the calculation in your communications.