Thread regarding AT&T layoffs

"Why didn't AT&T go with Fideleity which also provides this service and has a better ranking then Athene which has only been around since approx 2011?"

Fidelity is a brokerage NOT an insurance company. Yes, Fidelity could broker a New York Life annuity but reputable A++ insurance companies would not made this deal with AT&T.

If the pension is not guaranteed, then it would seem that they could not just transfer it to another company. Some lawyers need to look at this. That would be like stealing from us retirees.
If my pension fund goes bankrupt then people need to be sent to jail, including those who let this sale of assets go to their " good buddies'. You can play games with the possible investment returns, to fudge that a pension fund is solvent.

If you have a question or complaint involving your 401(k), pension or retirement plan, you can contact the U.S. Department of Labor Employee Benefits Security Administration Division of Technical Assistance and Inquiries². They can be reached at 1-866-444-EBSA (3272) or (202) 219-8776².

I hope that helps!

Source: Conversation with Bing, 9/1/2023
(1) SEC.gov | Thank you for contacting the U.S. Securities and Exchange .... https://www.sec.gov/401k.
(2) Ask EBSA | U.S. Department of Labor. https://www.dol.gov/agencies/ebsa/about-ebsa/ask-a-question/ask-ebsa.
(3) REGULATION AND SUPERVISION OF PRIVATE PENSIONS IN THE UNITED STATES - OECD. https://www.oecd.org/finance/private-pensions/2081198.pdf.

Athene does not appear to be on solid footing.
Athene’s HQ is in Bermuda.
Thanks a lot, John.

Very disappointing. Athene is a nightmare. Their history does not breed confidence for our retirees. Fidelity was trustworthy, professional, and responsive. Athene is merely a holding company in a shell game with more excuses than I've ever seen before (that is when you can reach them). Speaking from past disappointing experiences.

Why didn't AT&T go with Fideleity which also provides this service and has a better ranking then Athene which has only been around since approx 2011?

HELP, HELP, the sky is falling!

https://att.fidelitymicrosite.com/

Sometimes, if you have 30 years, you could easily be only 48-50 years old and that is definitely way too young to be retiring. Why not milk this cow for as long as you could. Since you have to work anyways at that age, cuz you're certainly not gonna get rich working for T, you might as well stay on board and make good money from T! It's really simple, it's not greed at all, just a matter of plain and simple economics!

Should I just worry even though I don't know what is going on?

Only affects current retirees with a monthly benefit of $2200 per month or less. Affects both management and non-management alike.
We expect at some point that all annuity pensions at at&t will be transitioned!

if you are here for 30 years then you're just kind of greedy or have no life outside of at&t

If you value all your hard work and what you have in your pension, GET OUT NOW! You have been warned?
I personally know of a few people that didn't leave last year and lost over $300K (with over 30 years in the company) of their pension due to the segment rate increase! It baffles my mind that they took that risk and now they can potentially lose a lot more on top of that if the insurance company goes under.
I left last year and kept my pension in tact and rolled it over. I was doubting my decision (for about 5 minutes) but now I'm so thankful I listened to my financial advisors.

Here are some numbers from an AI search - cannot confirm accuracy.

The $8 Billion (only 20% of total pension assets) seems low based on the participant data below.

Not sure if this move eliminates the lien on wireless assets. I'm not sure how the unions would agree to this regarding the elimination of PBGC protection. My guess is this is management only. Remember craft has a greater life insurance benefit compared to management simply because of their bargaining power. Here are the participant numbers.

As of December 31, 2021, there were 239,000 participants in the AT&T defined benefit pension plan. Of these, 124,000 were management and 115,000 were craft. There were 110,000 active retirees and 129,000 employees with pension rights.

As of December 31, 2021, there were 198,000 vested participants in the AT&T defined benefit pension plan. This represents 83% of all participants. Vesting means that a participant has a nonforfeitable right to their pension benefits. Employees become vested in their pension benefits after they have worked for AT&T for a certain number of years. The vesting schedule is different for different types of employees. For example, management employees become vested after 5 years of service, while craft employees become vested after 10 years of service.

The number of vested participants in the AT&T defined benefit pension plan has been declining in recent years. This is due to a number of factors, including the fact that AT&T has been hiring fewer new employees and offering buyouts to some of its older employees. As a result, the number of non-vested participants in the plan has been increasing. As of December 31, 2021, there were 41,000 non-vested participants in the plan. This represents 17% of all participants.

Help me understand - thoughts please.

T will transfer a little over $8 Billion in pension assets that cover 96,000 participants (supposedly management) while overall pension assets are $41 Billion. What about the remaining $32 Billion in assets?

Is this just management? current retirees? active employees with pension rights? previous employees who have not yet claimed benefits?

I believe total management pension assets are greater that total craft benefits even though more craft retirees.

????

After speaking to a Fidelity rep today, this change affected only current retirees and not active employees. This did affect a huge swath of CWA folks along with management retirees. This does negate coverage by the Pension Benefit Guaranty Corporation, if the insurance company goes belly up so do your annuity payments. This is one of the largest sell offs of pensions in recent history, and I can bet you that it won't be the last. Stankey has stated several times in the past that the pension fund is a drain on the company. If you are an active employee and your pension is sold off to one of these 3rd party insurance companies, there is no prior legally required notification given, so you won't have time to retire and take a lump sum. You will only get an annuity payment. Even if it was covered by the Pension Benefit Guaranty Corporation, the largest amount you can withdraw if it falls under the Guaranty Corporation is $15K per year. Not nearly as much as most people current annuity payments, but I guess some money is better than no money.

There is good money and profit when administering pension fund programs.

Here is a WEB Site LInk to Confirm that Athene is licensed in your state.

Most all cases they will be......but good to confirm in case of a Default by Athene in your state of residence.

WEB SITE:
https://sbs.naic.org/solar-external-lookup/

Populate the following fields:

Jurisdiction: Your State
Search Type: Company
Company Name: Athene

Click the Agree to the NAIM Terms BOX and then SEARCH

A listing of Athene Companies will Pop UP showing which are Licensed in your state.

FYI, I have spoke to a Fidelity Representative and I have the following understanding.

Fidelity is sending out two (2) mailings on the transition of the Pension Plan.
The first mailing is to be sent out May 5.
The second mailing will be going out from Fidelity later in May.

There will be a Fidelity phone number dedicated specifically for questions on the transition. (I assume that phone number will be in the upcoming Mailings sent out).

OUCH, that's a gonna leave a mark.

about time... maybe this will accelerate them buying out those that have pension so it can be re-invested and actually make a return. Current pension is a joke.

This will not benefit the employee/retiree.
Have you ever, I mean ever, known at&t to do anything to benefit the employee?

I get paid to be suspicious when I don't have anything to be suspicious about!

I DONT TRUST THEM!

I have no idea what this means. So something must be amiss.

It's out there on Edgar now. I'm seeing ...
The purchase of the group annuity contracts closed on May 3, 2023. The contracts cover approximately 96,000 AT&T participants and beneficiaries ...

As a result of the transaction, AT&T expects to recognize a one-time non-cash pre-tax pension settlement gain of approximately $350 million in the second quarter of 2023. The actual impact will depend on finalization of the actuarial and other assumptions. AT&T transferred approximately $8,050 million of benefit obligation and related plan assets upon close of the transaction and the funded status of the Plan did not change due to the transaction.

I wonder who is going to wind up being the 96000 people?

Must be a bonus for Stankey in there somewhere.

I smell a rat.

Athene is a sub of Apollo Management out of NYC - ticker symbol APO. I think this transfer is for management pensions only. PBGC coverage does not transfer. Not sure if this means AT&T is no longer on the hook regarding their wireless assets. We will find out more soon but I'm sure it will not be good news.

I bet the U is gonna show ‘em who’s boss and make T do right on this one.

Craft here: Retired last November taking the lump sum with 2021 segment rates and knew it was the right decision even leaving a little prematurely By the time the lump sum amounts recover( if ever) it will be too little too late. Pretty sure that ship has sailed infortunately. Not 100% on this but think any changes in the monthly annuity may be a NLRB issue as far as craft is concerned

More information at this WEB Site can be found:

https://att.fidelitymicrosite.com/

An independent Rating Company provides Ratings for Insurance Companies.
See link below for Athene (C, C-, and C+ ratings......not exactly encouraging).

https://weissratings.com/en/search?q=type(ins)+Athene

I retired in 2013, I regret taking the annuity. I think I should be able to change to a lump sum now. I don't trust this new arrangement. I may be forced to take a reduced lump sum, but it's better than taking a chance with a insurance company.

Thanks to the poster who shared the WEB Site listed below.....important information to know. I have been familiar with this process since retiring 5 years ago and I am not surprised to see AT&T to take this action.

I believe the Pension Obligation will transfer to Athene and will no longer be protected by the Pension Benefit Guaranty Corporation and will fall under the State Guaranty Associations.

WEB SITE:
https://www.pensionrights.org/resource/what-happens-when-a-pension-is-transferred-to-an-insurance-company/

Also below are links for issues on the State Guaranty Associations
(each State has their own guidelines, Coverages, Benefit Limits, etc)

https://www.nolhga.com/

https://www.nolhga.com/factsandfigures/main.cfm/location/stateinfo

https://www.nolhga.com/factsandfigures/main.cfm/location/lawdetail/docid/8

Received an official Email notification today (05-03-23) on the transfer of the Pension Plan and administration to Athene.

Some of the verbiage listed below:

"We’ve elected to transfer the assets and liabilities associated with your pension to an expert in this field, Athene.

Athene is a highly-rated insurance company that manages annuity payments as part of their core business. They’re experts in what they do, and they do it well. For AT&T, this model is more cost effective and will simplify the administration.

What does that mean for you? Beginning with your August pension payment, you’ll receive monthly payments from Athene instead of the AT&T Pension Benefit Plan. This change does not affect the amount of your monthly pension payment. Your monthly payment will be in the same amount and generally paid under the same terms as the benefit you currently receive."

"In July, Athene will send you a welcome kit and will ask you to review your personal information. They’ll provide instructions on how to make any changes, if needed."

OUCH, that's gonna leave a mark!

As long as sc-mbag Stephenson gets his 274k a month all is fine in the ivory tower

So does this mean our pensions are not insured & we can lose it all if this company goes under?

Verizon did this to management several years ago, currently only on the hook for craft. Probably the same scenario with T