I’m an active employee with a nice lump sum pension coming my way when I terminate employment (and also eligible for subsidized health care premiums). What are the chances that AT&T will eliminate the lump sum option in 2022 and go back to the “annuity only” option? Does anyone anticipate this happening? And would AT&T need to give at least 12 months notice?
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Lump sum reduces pension liabilities. The pension is a promise to pay you more money over time than a lump sum would pay, usually significantly more. I would sooner see them take away long term pension and pay them out the lump sum vs taking the lump sum away.
The infrastructure package currently in reconcilliation proposes expanding Medicare eligibility to age 60. Perhaps T has strong expectations this will pass and retirees or active employees could move over to Medicare.
The company wants you to take the lump.
Do you know that after 2021 your subsidized healthcare will only be as an active employee? Anyone who leaves after 12/30/21 will pay 100% of their monthly cost until you hit age 65, at which time you lose AT&T medical and go to Medicare.
AT&T would much rather you take your money and done with it so they don't have to manage your money.
I would doubt there would be any changes to pension. If you are marked as lump sum, that's what you will get. Anything so they don't have to manage anything for a retiree is priority.
AT&T wants to hold the money to prevent the depletion of pension assets.
If ATT were to sell/outsource the pension to another form (ie insurance company) this could happen. If ATT retains all pension dispersements they want you gone (lump sum)
There's no chance as AT&T wants you and your money to hit the door.