Today’s announcement. Looks like further reductions. Can someone summarize?
9 replies (most recent on top)
AT&T provides a comprehensive compensation and benefits package to help provide financial security
for you and your family. The retirement programs, including pension, are key components of our
benefits package and are regularly benchmarked for market competitiveness. As a part of that process
and to better align legacy pension programs, AT&T is changing the way your pension benefit is
calculated beginning January 1, 2022 as follows:
AT&T Legacy Management Program, US and Puerto Rico, participants (Legacy AT&T Corp):
Cash Balance
o If you are age 50 or older the age factor used to determine your Basic Benefit Credit will
be a maximum of 7.00%
o For all ages, the Supplemental Pay credit will be 3.00%.
o Interest Credits are not changing.
AT&T Nonbargained Program participants (Legacy S*):
The Career Average Minimum (CAM) formula will use a factor of 1.0% times pension
compensation for compensation on or after 1/1/2022. The current factor of 1.6% will still be
applied to compensation prior to 1/1/2022.
The Pension Band Minimum (PBM) formula will use a factor of 0.75% times pension
compensation for compensation on or after 1/1/2022. The current factor of 1.2% will still be
applied to compensation prior to 1/1/2022.
- Legacy S includes former Ameritech, PTG SBC, SNET employees
Key points:
Your pension benefit is not going away and there is no action you need to take.
These changes only apply to future pension accruals starting January 1, 2022 and any pension
benefits earned prior to this change are not impacted.
The Fidelity online estimator tool on netbenefits.com will not have these changes programmed
until the first quarter of 2021. Consequently, please be aware that any estimates that you
previously ran or may run prior to the programming changes with a payroll termination date on
or after January 1, 2022 may be overstated.
You will receive additional communications in 2021 about this change to remind and educate you as
these changes are included in Fidelity’s online estimator tool. Please contact the Fidelity Service Center
at 1‐800‐416‐2363 to speak with a Fidelity representative if you have questions.
Information was provided by AT&T Inc. Fidelity Investments is not responsible for its content.
Can management take lump sum pension payment??
This benefit update will help reduce some deadweight and help the companies bottom line.
Rate me low so I can go.
"This is an obvious attempt to push us off payroll in 2021."
Its more than that. If you are not MR75 eligible by Jan 1 2022, you lose the future healthcare subsidy regardless, even if you are not eligible to retire before the deadline. People like me are screwed either way.
I just received the email from HR. This was targeted only to retirement eligible employees that had been eligible for pre-Medicare healthcare coverage subsidy under their legacy plan.
The email informed that we are no longer eligible for the pre Medicare healthcare subsidy if our last date on payroll is on or after Jan 1, 2022. They are graciously allowing us to remain eligible to pay for coverage at full cost (no company subsidy).
This is an obvious attempt to push us off payroll in 2021.
The hits just keep on coming.
Also no healthcare coverage in retirement.
staring in 2022, they're decreasing pension contributions and making retiree life insurance a flat 15K
What announcement?