Got a letter the other day stating that ATT Pensions are no longer handled by ATT Benefits Center. Athena is now Administering pensions effective August 1st.
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Who do I get in touch with for my AT& T Pension?
I am so glad I retired last November! Leave when you can! You won't regret it!
The part of the pension reimbursement that remained with AT&T, Medicare Reimbursement, is a morass. AT&T advised me that a direct deposit for Medicare Part B Reimbursement was made to my checking account on 9.29.23. Still hasn't shown up and my numerous calls to their Benefits Center have only resulted in them issuing a Ticket # for my inquiry. Their is no way to get thru the Benefits Center automated answering system to someone who may know where the ticket is, how it is being handled, etc. Repeatedly saying "Representative" only switches to another automated message stream with no path to a live benefits center CSR. Terrible way to assist pensioners. It is 10.24.23 and the direct deposit of 9.29.23 (supposedly) is still meandering in the cloud with AT&T CSR's hoping it will show up someday and they can close the ticket!!
I read the Athena website information which deals with and details Anuities. Question: Will the Lump Sum option be going away? There were some concerning riders though which I need to look into.
That dirty dog Stankey! I knew there had to be something in it for him. Its safe to assume he will get 10% of the $350M windfall.
"Athene is riskier than if AT&T would have retained it."
The same people that didn't leave last year due to the 30% or more loss in their pension are the same people that are saying not to be an alarmist about this pension transfer to Athene!
Some people are rolled the dice by not leaving last year with hopes of "making up the loss" to their pension in 5-10 years from now.
The writing is on the wall people!!! We're not being alarmists, it's in plain site. If you think the company is making moves to help the employees, you are in denial. You still have a month or so... take your lump sum and go elsewhere.
AT&T will realize a $350 million non cash gain with the offloading of its pension plan. State Guaranty corporations may not have the financial resources to cover pensions if Athene goes bankrupt. In addition, that $8 billion is going into the investment markets!!
Athene is riskier than if AT&T would have retained it.
https://www.investopedia.com/athene-life-insurance-review-5190014
Not gone just moved under the State Guaranty Association (each state may have different rules) vs the Federal PBGC. AT&T has offloaded it to Athene Annuity & Life Company, its ok until it isn’t. If the retiree had selected to have their Medicare part B or Healthcare plan premiums deducted from their pension they will now have to pay separately. It puts more administrative duties on the retiree, so it is a small benefit loss.
It benefits the company and puts the retiree at more risk.
So does that mean my pension is gone? What can I do?
Stankey removes risks, funding and paying the PBGC premium for 96,000 employees. If you have any problems with your pension AT&T is off the hook. Furthermore, the money he paid to Athene becomes part of their general pool of assets which means any investment gains go in their pockets!!
The defined benefit plan is over!!
What's in it for Stankey?
Dang dog, can they do that?
RIP, pension benefit!
Since the pension asset has been sold to a 3rd party, the lump sum option is not available. The whole point was to buy annuities for current and future retirees.
Switch to lump sum
If you are already getting your pension and your former employer decides to convert it to an annuity paid by an insurance company, your monthly benefit should stay the same. However, your benefits will no longer be protected by the federal pension insurance program, the Pension Benefit Guaranty Corporation.
AT&T has taken this risk off their books. In addition, it no longer has to pay a premium to the PBGC for retirees.
If your pension fails you have no Federal Government protection!!!
With the transfer of pension assets there will no longer be any enhanced offers.
The C-suite pension remains fully intact with some payments of over $200k per year with free benefits!!
Dear AT&T retiree1—
As a retiree, you’re probably aware that AT&T is focused on becoming the nation’s leading 5G and broadband provider. This focus is consistent with our legacy as one of the world’s leading communications providers, a legacy you supported with your service to the company. In recognition of that service, the leadership team is committed to preserving the most important and significant benefits to our retirees, despite an increasingly challenging and competitive environment.
For decades, we’ve worked hard to safeguard and fully fund our pension obligations. With the plan in good standing, we’re looking at options to further care for these important assets and give you greater peace of mind about your pension payment.
One option available today is to work with a respected financial institution that provides pension group annuities for other Fortune 100 companies. These financial institutions are experts in this field, with a central focus on managing pension assets for maximum returns and safety.
For this reason, and after a detailed review, we’ve elected to transfer the assets and liabilities associated with your pension to an expert in this field, Athene2.
Athene is a highly-rated insurance company that manages annuity payments as part of their core business. They’re experts in what they do, and they do it well. For AT&T, this model is more cost effective and will simplify the administration.
What does that mean for you? Beginning with your August pension payment, you’ll receive monthly payments from Athene instead of the AT&T Pension Benefit Plan. This change does not affect the amount of your
monthly pension payment. Your gross monthly payment will be in the same amount and generally paid under the same terms as the benefit you currently receive.
You don’t need to take any action right now. In July, Athene will send you a welcome kit and will ask you to review your personal information. They’ll provide instructions on how to make any changes, if needed.
We know that the AT&T Pension Benefit Plan provides an important source of retirement income for thousands of individuals, and you can have confidence that this move is a win-win. You’ll be supported in your retirement by an expert in the field, as AT&T focuses on being the best connectivity provider.
We’ve included a brief Q&A below to help answer some of your questions. You can also visit go.att.com/pensiontransfer for more information. If you have any further questions right now, please contact the Fidelity Service Center at 1-866-956-3115. Athene will be in touch with you in July.
Thank you for all you’ve done for AT&T. AT&T Benefits
1 AT&T retiree includes former employees of AT&T and its affiliated companies with benefits under the AT&T Penson Benefit Plan.
2 For retirees residing in New York, your benefits are being transferred to Athene Annuity & Life Assurance Company of New York; for retirees residing in all other states, your benefits are being transferred to Athene Annuity and Life Company.
It’s time for a management strike.
In other words this won’t affect upper management because they receive more than $2,200 a month in their pension. Kinda like the affordable care act (ACA) healthcare plan for common citizens but not for the elite representatives, the elites were able to keep their Cadillac plan while everyone else’s was changed. Lords and serfs!
Q: How many retirees will this affect?
A: This transaction covers about 96K retirees who receive certain monthly pension benefits from AT&T—
including you. Generally, it’s based on who is receiving the benefit (you) and the amount (less than $2,200
per month).
If you have questions right now, we encourage you to reach out to the Fidelity Service Center. Athene will
be in touch with you in July.
Q: What changes for AT&T retirees?
A: While the annuity purchase changes who pays and administers your payments, it does not affect the
amount. Your gross monthly payment will be in the same amount and generally paid under the same
terms as the benefit you currently receive.
Q: What happens to payments for AT&T retiree health coverage or reimbursements for Medicare Part B
premiums that are included with my monthly pension benefit?
A: If your monthly pension benefit currently includes payments for retiree health coverage or Medicare Part
B premiums, after the switch to Athene, you’ll need to start paying for retiree health coverage directly
and receive any applicable Medicare Part B reimbursement separately. Simply put, this only impacts how
your health coverage is administered – which will be through the AT&T Benefits Center. The AT&T
Benefits Center will reach out to you soon with instructions for setting up this process. Athene will still
administer your pension.
Q: Why make this change?
A: Athene is a highly-rated insurance company that manages the financial risks associated with annuity
payments as part of their core business. They are experts in what they do, and they do it well. For AT&T,
this model is more cost effective and will simplify the administration.
Q: How do I know my pension is secure with Athene?
A: Insurance companies, like Athene, are heavily regulated to protect your interests. That means you've
got protection from a state guaranty association with coverage determined by where you live. State
guaranty associations act like insurance for insurance companies. For more information, visit the National
Organization of Life & Health Insurance Guaranty Associations at nolhga.com. Click on Facts & Figures,
then click on GA Law Summaries and scroll through the drop-down menu to select your state.
Q: Can I reach out to Athene now with questions?
A: For now, we encourage you to reach out to the Fidelity Service Center. Athene will be in touch in July with
details about the transition.
https://att.fidelitymicrosite.com/
I believe what this means is, the pensions are no longer insured by the Pension Benefit Guaranty Corporation (PBGC). So, if Athena was to fail, there is no backup.
I'm reading "The contracts cover approximately 96,000 AT&T participants and beneficiaries".
Was the plan to roll this news out on a Friday so it would have minimal impact? Total sh1t show!!! The pension is really the last remaining benefit for most of us.
Not correct. The op would have you believe all pension obligations were affected. Not true, educate yourself and don’t get your info from here.
The T stands for Titabic!
Correction: the new company name is Athene.