Is the Att pension fund safe? Any informed comments? If Att elects under Federal law then can’t Att sell the obligation to some private insurance company and if that is done and then the insurance company fails then the federal Pension Benefit Guarantee Corporation will not bail out former Att pensioners?
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the "Word" is you're FOS
I was axed this round, can I wait to take the lump on Jan 1 2021 to get the 2021 interest rate? If the current rate holds it will be a nice bump in the lump sum payout!
If T indeed did the Dec 2020 pension plan dump, I think Ratty and Stinky would exceed their wildest wet dream of employees leaving.
If AT&T can mess over the employees to pump up the stock, they will. When I left in 2018 I cashed out of the pension fund for all of the reasons mentioned 8n this thread. So far, so good. If the pension gets sold, the federal pension benefit guarantee goes away and you are at the mercy of the state guarantee. I got tired of T's malfeasance and decided to take my fate into my own hands. My advice, find a good financial planner and don't give T your trust. They have shown over recent years that they don't deserve it. Good luck and God bless.
“ So... The word is that AT&T is investigating continuing to pay benefits for those that have retired on or before December 31, 2020. Anyone else that is vested and still working after that date will be paid a lump sum that meets the SEC requirements for liquidation of a retirement/pension fund. News Flash! It is a fraction of what you might think. ”
Does this mean that have yet to retire and your pension value today is $1M, if you keep working past EOY, your lump sum could or will be less than the current value ?
IMHO, it's only a matter of time before T freezes the management plan and transfers the pension to an insurance company as Verizon did with its management plan a number of years ago. With this in mind here's some background information for anyone worried about the pension or trying to make a decision on whether to take the lump or the annuity option.
http://www.pensionrights.org/publications/fact-sheet/what-happens-when-pension-transferred-insurance-company
https://www.forbes.com/sites/edwardsiedle/2012/10/25/att-proposes-massive-dump-of-company-stock-into-pension/#88e98da5e8d7
A few things to keep in mind. Back around 2013 AT&T put a good amount (about 18% at the time) of a newly created AT&T stock that tracked the Mobility business into the pension plan. This was an unusual move that I am still surprised was approved. While they were doing this, they were using money that could have gone into the pension fund to buy back stock.
I was given the option of a lump Doedo not regret it at all. My investment adviser has increased my fund. The only down side is being taxed if you need to take money out.
Fixed it:
I can assure you that Ratty's $270k per month pension is perfectly safe!
For the rest of you peasants, you are own your own.
I can assure you that Ratty's $270k per month pension is perfectly safe!
Right now, the pension is insured by the federal PBGC. So, if the pension payment is below the backstop of the PBGC, there is a secondary payer. So, check the amount insured with the PBGC.
Now, if the pension plan is sold to an insurer, I'm hearing that those plans are guaranteed/insured by state agencies/insurers. The amount insured could be radically different.
It's a heck of a coin toss.
So... The word is that AT&T is investigating continuing to pay benefits for those that have retired on or before December 31, 2020. Anyone else that is vested and still working after that date will be paid a lump sum that meets the SEC requirements for liquidation of a retirement/pension fund. News Flash! It is a fraction of what you might think. This will allow AT&T to take a one time write down against 2020 earnings. Once the Pension commitments are off of the books. The balance sheet will allow AT&T to be a darling on Wall Street going forward.
Try this
https://www.google.com/search?client=safari&hl=en-us&q=at%26t.pension+fund+safe+site:thelayoff.com
Try this old thread on pensions
https://www.thelayoff.com/t/WloEqGc
Or
@ WloEqGc
An insurance company won’t buy it unless it is fully funded. Also it would then be insured by state insurance laws. Right now this is $250k in most states. More likely socialistS will take your money than the plan default.