Thread regarding AT&T layoffs

For the FIRST time, the people that refer to their future monthly pension as an annuity will actually be right, if they retire after August.

Yes, it will be true in the future.

It has been released that ATT, Pactel, SWBell, Americrap, Bellsouth, Connecticut, etc... will now actually "purchase annuity's" for each employee in lieu of paying monthly pension payments.

Remember, it has been stated that the companies will "purchase annuities" for their employees, this will be important at the end of this post.

It looks like this will stop ATT etc. from now needing to reluctantly increase the monthly pension payments due to cost-of-living yearly (or every few years), you see, once an annuity is purchased and begins, the payment does NOT EVER CHANGE unless you pay an extra fee for a cost of living increase clause.

I have not read anything saying a cost-of-living rider(fee) will also be paid. It is possible this information was just left out, also possible that YOU will be offered (for a monthly fee) the option to purchase a cost-of-living rider yourself, also possible that this will not be an option.

You see, you will no longer be dealing with your company. And the insurance company will have no incentive to raise your monthly payment just because you would like one.

So, for all those who have been thinking your company will buy you an annuity, well, if you wait till after August you will be getting what you dreamed of.

Advantages of the lump-sum still appear far better than annuity to me.

I doubt any insurance company will be happy about not getting all that lump-sum money for themselves, so look toward the future to see if there might be some shenanigans being pulled by the insurance company because once you "annuitize" your insurance, to get the money back out as a lump sum usually requires a hefty percentage of forfeiture.

And it appears that is what is going on, ATT, etc. has probably been offered a really good discount to "annuitize" each persons pension. (good discount meaning they keep a lot of money for themselves)

Any opinions ??

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Post ID: @OP+1mx4b9kx

15 replies (most recent on top)

Post from TheLayoff.com

in d3 its the old union members that screwed the new hires on their contract.

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Post ID: @6pwl+1mx4b9kx

Choosing the monthly pension over the lump sum? OUCH! Let's see what that $4,800/month looks like in 2031 when AT&T is bankrupt.

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Post ID: @2qbt+1mx4b9kx

Doesn't matter who I am getting paid from. It's all good.

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Post ID: @1wwu+1mx4b9kx

"Anybody agree that turning the pension over to an outside firm may be a good thing? Get that money out of a failing company's greedy hands and into an actual guaranteed contract."

That is precisely the plan of the failing company! They give the pension to an insurance company, take millions in the process, and now they are not liable at all. If the insurance company fails there goes your pension.
Athene was founded in 2009 and has a C- rating. Look that up.

Definitely NOT A GOOD thing for the employee. It's a GREAT move for T that's for sure.

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Post ID: @1jjd+1mx4b9kx

Anybody agree that turning the pension over to an outside firm may be a good thing? Get that money out of a failing company's greedy hands and into an actual guaranteed contract. I took lump sum in 2021 and was extremely confident to include an annuity investment as part of my overall reinvestment strategy.

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Post ID: @1aqq+1mx4b9kx

wonder if they will stop your annuity payment if you don't want to take any future clot shot for all the new diseases billie gates dreams up. all kidding aside I would definitely look at any clauses with that since they are an insurance company.

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Post ID: @1yhn+1mx4b9kx

Humble brag on the $4800 monthly annuity. That along with your social security alows you to live like a king!

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Post ID: @zor+1mx4b9kx

So what really happened?

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Post ID: @bti+1mx4b9kx

My at&t monthly pension is $4800. I don't care where it comes from, just keep the money coming. I'm having a blast, who knew retirement could be so great!

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Post ID: @hmn+1mx4b9kx

There will always be the haves and the have nots.

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Post ID: @iqt+1mx4b9kx

"Why aren’t all pensions being handled the same regardless of payment cap?"

Your pension will be handled according to the contract with your particular company.

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Post ID: @xgl+1mx4b9kx

It seems that a cost-of-living clause in the annuity policy would definitely be something to brag about LOUDLY but since there is no mention of anything other than the basic immediate annuity policy it is doubtful any cost-of-living will be provided.

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Post ID: @tah+1mx4b9kx

Why aren’t all pensions being handled the same regardless of payment cap? This isn’t right.

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Post ID: @vbh+1mx4b9kx

I wonder how many people get more than the 2200 per month ?

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Post ID: @xuu+1mx4b9kx

Getting paid.

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Post ID: @uvn+1mx4b9kx

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