Thread regarding AT&T layoffs

To end the 75% funding claim repeated from the news articles- No participant in any PBGC covered Pension Plan can get a Cash Balance payout if the plan funding level is below 80% per the Pension Protection Act of 2006. AT&T continues to payout millions to retiring employees that request the cash balance method of payment.

From The IRS Filing that AT&T is required to make yearly for the Pension Plan. I would imagine the wireless tracking stock is included here. I hope just because it says 75% in a news article someone might fact check it before you post it as fact. The Intern that wrote the article might not have passed math class..................

1. Funding Target Attainment Percentage

2017 96.5%

2016 98.5%

2015 98.7%

Really 100% survivor option does not cover children/dependents..per my advisor TAKE THE LUMP SUM AND RUN!!!!F*** AT&T. Most of us gave them our family life and lost our families due to not being there for them. See what work ethic, passion, alignment, values, pride and commitment to AT&T matter. Just a number/body not appreciated.

Single-Employer Program Continues to Improve

PBGC’s Single-Employer Insurance Program covers about 28 million participants in more than 22,000 plans. Last year’s report projected the program could potentially emerge from deficit by FY 2018 and was likely to emerge by FY 2022. The program forecasts have improved, with a larger chance of emerging from deficit by FY 2018 and emergence likely by FY 2019. The projections for FY 2027 show a wide range of potential outcomes, including the possibility for future deficits that could range in excess of $100 billion, but with an average positive FY 2027 net position of $26 billion in future dollars ($20 billion in today’s dollars). Improvements in the program’s financial position over the 10-year period are due to the general trend of better funding of pension plans and projected PBGC premiums exceeding projected claims.

AT&T PENSION BENEFIT PLAN AT&T Inc. 431301883 903-910-4201 Single-employer

With the AT&T pension you do have 100% survivor option.

You would have to get about 6% from a mutual fund to match the pension annuity.

Most financial advisor types I have listened to always advise taking the lump sum pension benefit when it is available to you. You'll do far better with those funds balanced across some mutual funds in the long tern that you would with an annuity. And your heirs with get whatever is left over... as opposed to a pension benefit that worst case dies with you, best case your spouse gets a reduced amount.

Here is a recent article that references the funding level of ATT's pension (10/20/2018):

https://www.marketwatch.com/story/5-companies-that-spent-lavishly-on-stock-buybacks-while-pension-funding-lagged-2018-10-20

This says funding stood at 76.7% ant the end of 2017. The fact that the preferred stock pays the fund ahead of creditors references what happens to the assets it represents in the event of bankruptcy and liquidation. As for the ERISA guarantee, that only has meaning if there is money in the PBGC to back it up. Following is a statement from the PBGC itself on how good that is looking these days:

https://www.pbgc.gov/news/press/releases/pr18-02

To me the OP suggests the ATT pension fund might not be as sound as we'd like. Other sources like those cited here make me agree. I'm not so sure these things would cause me take a lump sum payout in the event of layoff or retirement, but it would make me look carefully at it before making that decision.

Wait...WHAT?!? You mean AT&T is mismanaging their finances and cooking the books? Oh golly gee! Who woulda' thunk??

wha-hahaaa ......UNION people seem surprised? priceless

Here’s a more recent link from Feb 2018..

https://www.pionline.com/article/20180221/ONLINE/180229963/atampt-to-dial-up-560-million-in-pension-contributions-in-2018

As of Dec. 31, the company had $45.46 billion in DB assets and $59.29 billion in projected benefit obligations for a funding ratio of 76.7%, up from 75.9% last year.

FYI..I’m not the OP

It is so disheartening that the original poster did not even read the article they linked (from 2012) OR they purposely misrepresented what it said.

There is NO mention of being underfunded and where did the OP's 75% figures come from?

"With total plan assets of approximately $46 billion, the percentage of company stock held in the plan following the proposed transaction would soar to an astounding 18%"

Hard to believe this Pension thread as there is more wrong posted here than there is correct. If the AT&T pension fund was actually considered funded at 75% NO ONE COULD GET A CASH BALANCE. Federal law (Pension Act of 2006) requires a company to have at least 80 percent funded to pay out a cash balance (only a monthly annuity could then be paid below 80%). Yes, there is a wireless tracking stock but if you READ the annual statement I believe for government for accounting purposes they consider the Pension Plan funded at around 98 percent. The tracking stock pays employees ahead of all creditors and that is probably why the DOL approved it. As far as "the sky is falling" run with your pension money ERISA guarantees (Federal Gov't) the plan to pay out more yearly than any of us reading this (around 55K) need to worry about. As far as moving it all to a 401K it is probably good to talk to an advisor if you already have a large 401K. I encourage you all to read as much as you can about pensions and I do agree it is good to plan for the future. Wish this website stuck to layoffs as I am more concerned with that personally when planning for my family's future.

Sure Randall!!@, everything is going to be just fine, lol

the ATT pension will be just fine.

To the poster who left T- TAKE YOUR PENSION MONEY AND MOVE IT!!! Your money is not safe there.

DUDE, so, you left your money behind? THAT WAS YOUR 3RD MISTAKE.

Post ID: @WloEqGc-zrm, Take your pension and run, you can do better with any annuity that lock 6% guaranteed at least for 5 years commitment.

My takeaway is that the combination of heavy debt load that my force the company to choose between making interest payments and pension plan contributions, the underfunded condition of the plan, and the possible dodginess of some of its investments (the "wireless preferred stock"), make the plan more risky than one might otherwise assume. How much so, and whether to take a lump sum or count on the plan to deliver monthly checks for the rest of your life, is up to the individual. And if the plan goes belly up, don't count on the government PBGC to make you whole.

Question. I left at&t a year ago and still have my pension growing. It's not a huge interest rate, but I like the guaranteed 4.5% rate to guard against the volatility of stocks. Each month money is deposited into my account. Is this thread arguing that money isn't actually there and that it's just a promise? That doesn't really make sense to me, but perhaps different unions etc. have different pension plans than non union management employees.

Flipped my pension into a 401k far from the company after leaving and am able to sleep at night again...

Correct!!!! 2012 is Around when they stopped the pension for new hires. Honestly I am waiting for the next MVO because I am worried about how “secure” our pensions really are. I say take the cash balance, get a good planner- invest it and run. Move everything out of T stock. It’s a bomb.

To all AT&T Employees, watch out, this massive conglomerate is "cooking the books" and going after your your jobs and wealth.

This is like a chess game, your a next, and your decision will determine your outcome, Good luck!!!

Clue: Check mate!! work until you are in your 90's if you are not careful.

Ahahahwhawha hahaha......Another curved ball to our beloved CWA, they will have 2 options: 1- be paid in worthless AT&T stock, or Moving to India to fund fake masters degrees @T university, LOA

This is around the same time (2012) that the stopped the Pension for some (all?) new hires.