According to the PBGC’s website the pension plan is NO LONGER INSURED! AT&T saves a quick $325 Million and the guys who worked there for 30 years get screwed. https://blog.techstaffer.com/navigating-pension-transfers-a-look-at-atts-move-to-athene
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The lump sum pension payment is not a required option. It was/is a way for the company to do away with the associated cost you present as a monthly obligation. An insurance providers business is monthly obligations. Think annuities. However the last thing an insurance company wants is lump sum payouts. The real risk is you will lose that option. If that matters to you.
OMG! This is shameful and it is the final FU to long term employees. I retired 5 years ago and took the lump sum because I was afraid this was going to happen. So far, so good. It looks like AT&T made $350M off of this travesty, I'm sure Athene made a few bucks too. Meanwhile the current and future retirees have just been given a boat load of new risk. Taking the lump sum is also a risk, but at least you are in control of your own destiny, and if all goes well, you have something to leave to your kids. Please talk to a good financial planner and look out for your own interests. Don't believe any of AT&T's BS. Good luck and God bless.
Two words : Lump
Sum. Take the money and invest. One bird in hand better than 2 in bush.
Athene's reviews on WalletHub are petty stellar!
John Oliver did a show called "RETIREMENT PLANS" and this shows how the annuity can go bankrupt and leave pensioners broke. Our new annuity company Athene says there is up to 4.25% management fee. With billions as base, Athene can afford to buy the persion money from T for the 325M. I wonder how much the C suite club got as middle men.
I don't recall the exact name of the show.
“ Name those various other entities. Another insurance company? Do they pay into the PBGC?”
The PBGC does not guarantee insurance company annuities that have replaced funded pensions. Any “guarantee “ will be provided by each state based on their requirements that the insurance annuity must meet. The federal government has no policy to guarantee insurance annuities that replace pensions. Also states are not mandated to guarantee insurance annuities used as pensions. Many do, but they require the insurance companies to pay the state a “fee” and to show that financially the annuities are stable based on the requirements set by the states they have coverage in.
My financial planner did his research for me on this pension move & has assured me the money is insured through various other entities. Stop trying to scare people,
Not all states will insure your pension dollar for dollar. You may not get or be entitled to a full payout from the state insurer if the pension annuity goes under. Quit making people think that no matter what happens in the future that they will always receive a full monthly check. There are circumstances that may lead to a reduced payment. Some states may not insure the payment at all.
My financial planner did his research for me on this pension move & has assured me the money is insured through various other entities. Stop trying to scare people,
Name those various other entities. Another insurance company? Do they pay into the PBGC? If not, hide and go Fhuck yourself. Stop trying to tell people their pension is safe. AT&T did it for a reason and it wasn't because they wanted to retirees to be safe in their retirement. Stankey is looking for coins under the cushions and they are not there. The treasure trove is the pension fund. He is eyeballing that.
My financial planner did his research for me on this pension move & has assured me the money is insured through various other entities. Stop trying to scare people,
Always take the lump…..
Please do not trust your pension info coming from this site. Educate yourself. If your CFP is worth a damn, they can help. I hope you have one.
Take the lump and smile.. take the monthly and frown…
Spoke with Fidelity and they said that if you're still working for T, your pension is still with Fidelity. If you've been retired, as of October, 2022 if your pension is less than $2200 per month, it has been moved over to Athene. So, I gather once you retire, if your pension is less than that monthly rate of $2200, then you will be moved over to Athene with the rest of the retirees. It's a very simple screwing mechanism that T has in place to save money.
https://www.google.com/amp/s/www.theretirementgroup.com/blog/atts-retiree-pension-payments-taken-over-by-athene%3fhs_amp=true
I am confused as to what group's pensions are moving. My husband's pension is Fidelity and he's been getting checks since he was laid off in 2007. Mine is at Fidelity also, but I haven't been laid off yet (I'm sure I will be in June). Are those also moving to Athene? Thanks in advance for any replies. :)