Thread regarding AT&T layoffs

It will take decades for most to recover in lump sum from interest rates of 2 years ago.

if covid didn't ki-l them the shots will. win win especially for social security

A combination of factors led to this:

1. Freezing the plan for new entrants. Pension funds remain underfunded as new employees add to the pension’s liabilities. No new entrants mean that this liability no longer grows
2. Benefit reductions the past two years resulted in both lower payouts and lower contributions by the company
3. Older retirees dying reduce pension fund commitments
4. Lump sum withdrawals hurt in the short term as low interest rates cause high lump sum estimates. The reverse is true under high interest rates where a smaller fund can support planned pension payouts.
5. Covid deaths may have shrunk the pool faster than estimated by the plan

Overall, it’s not surprising that the fund is temporarily at 100%. This will not be true if interest rates go down

“I love how all these 20 - 40 somethings expect to live off their 401K in retirement. Most 401K accounts are down 25-30% under Biden administration. They had better hope they've got a rich uncle, that's their only hope!”

What a silly statement from a uniformed and uneducated doofus. Have you ever looked at historical market returns? So the 20 year old starting to save in his 401k today is doomed because of the current administration? That’s not how markets work. Educate yourself, you sound ridiculous.

Any chance at&t will reverse course and restart a defined pension benefit plan for all the employees without a pension?

You do understand that because of "leaderships" missteps AT&T had once 185 Billion dollars of debt. Once the sale of DirecTV and Warner Media, and the smartest guy in any room (Stankey) was complete, AT&T only has 135 Billion of debt. This will take several years to pay down.

Any chance AT&T will reverse course and restart a defined pension benefit plan for all the employees without a pension?

No chance.

Any chance at&t will reverse course and restart a defined pension benefit plan for all the employees without a pension?

No. They are a thing of the past.

Those with the intelligence to take lump sums have no concern for the pension funding levels.
I really want to understand why someone downvoted this earlier.

Any chance at&t will reverse course and restart a defined pension benefit plan for all the employees without a pension?

Those with the intelligence to take lump sums have no concern for the pension funding levels.

I love how all these 20 - 40 somethings expect to live off their 401K in retirement. Most 401K accounts are down 25-30% under Biden administration. They had better hope they've got a rich uncle, that's their only hope!

@still good news….for who? The poor schmuck that’s only working for a 401K, because ATT screws them out of a pension?? Or the manager who’s never going to have medical benefits in retirement. Oh yeah it’s 100% on covering them pensions. Because they’ve screwed everybody else over!!

Yes, always love a loss of benefits. Race to the bottom wins! Opps, unless you are in the friends and family plan.

I've actually been shopping for a new phone plan. The fact that AT&T is living up to promises it made decades ago makes me feel good about using them.

Yes, they may not have made the same promises to recent hires. But would you rather they did promise and not deliver?

Gets more funded daily, no new members added and older Ma Bell employees dying.

Still good news

Been how long since they terminated pensions?? Of course it’s 100% funded…. So few left for them to pay.

Can't be that many more eligible employees that qualify for a defined benefit pension.

Has anyone see this?

https://news.bloomberglaw.com/litigation/at-t-workers-seek-massive-class-challenging-pension-calculations