AT&T being sued over moving pension to Athene

https://www.plansponsor.com/att-sued-over-2023-pension-risk-transfer-with-athene-annuity-and-life-company/

But is Athene really an unsafe company? They have good ratings from Fitch and AM Best ratings. And all retirees are so far being paid so there is no material damage.

There is no question AT&T gained in this transaction (about $350,000 million in profit and yearly savings of around 11 million). But nothing wrong with that.

The burden of proof to show Athene is an unsafe company to deal with is hard to show. AT&T will move to dismiss the lawsuit.

Yet, Google search shows that dealing with Athene customer service is a nightmare.

My thoughts are AT&T will move even more of their defined management pension funds for those it has not yet moved to companies like Athene in future. This is an industry trend.

Choosing between getting payments on a monthly basis vs. lump sum withdrawals for most people comes down to how old someone is, what age they they may live to, whether they want to leave some funds for their children, and if they are afraid they may run out of money if they manage the funds themselves vs. security (in theory) of an entity that will give them a set amount every month. Balance all of that against inflation. It is a personal choice for most depending on your risk tolerance for putting money in market. The other option is to take the money and invest in a very secure annuity from a company like Mass Mutual. The payments may be slightly lower but the company is easy to deal with and safe. Expect about 5-6% returns currently.

This turn of events is unfortunate as AT&T plan members lost guarantees of PBGC (Federal insurance for their pensions) and will be left with unfunded state insurance guarantee agencies that are hard to deal with and have much lower levels of maximum reimbursements if an insurance company can not make the payments.

Comment! It's anonymous!

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This is spot on. Get your money out of Att hand period and try not to have any dealings with them. But they will still leak your data and ssn even after almost a decade of getting them out of your life.

“So no one here understands that AT&T would have kept running the pension if they could? The company isn't making money like it used to. More than half the current employees don't qualify for pension at all. If nothing changes, AT&T won't be here to pay pensions anyway. We are the next Sears and John Stankey is our Eddie Lampert.”

Another fact about pensions and 401k’s to consider, most are sheltered from any judgements like bankruptcy, bill collectors, lawsuits, etc.. Lump sums are fair game.

The pension will not keep up with inflation. If you live 25-30 years after retirement the pension payment might buy your groceries and a Sunday trip to McDonalds. Nothing more. Take the lump sum and make an appointment with a financial advisor. You can decide what your risk tolerance is and you will have some money to live a decent life.

Safest bet: Take the lump sum and invest 50% or more in a deferred fixed annuity. You still own the principal and currently get 5% return. The principal is locked up for a set period of 3 or more years. After which you can reinvest. Fidelity can do this for you.

Mutual funds & the equities are great until the market tanks like the dot.com bust. A lot of retirees and ex bell heads lost all or nearly all their nest egg.

As stated, if your pension is handed off to another entity and they fail then, you no longer are protected by federal insurance. Most States can’t handle private pension failures. Thus the lawsuits to determine if companies have a “fiduciary” obligation to their employees and is it legal to sell pensions to another company.

Enjoying my lump sum rollover into a well managed retirement fund.

Very glad I retired (early) last October 1st 2023 and took the pension lump sum. It was very easy apply and receive. I invested it in Mutual funds and have earned over 10%. Way better than an annuity. Plus I am single and T doesn't pay a survivors payment if I died. I fully believe this was the best choice for my situation.

"There is no honor among thieves."

So no one here understands that AT&T would have kept running the pension if they could? The company isn't making money like it used to. More than half the current employees don't qualify for pension at all. If nothing changes, AT&T won't be here to pay pensions anyway. We are the next Sears and John Stankey is our Eddie Lampert.

I'm getting paid.

Some states don’t provide any insurance of these type of pension payments. Athene goes BK and pensioners in those states get nothing. Frankly I see no reason for states to be guaranteeing pensions that are not from state employees. There should be no legal need to defer this on the shoulders of state taxpayers.

If it is bad for employees, AT&T will forge ahead. Come on now.

Pension assets locked up in commercial real estate. Book value is substantial. Tangible real value, worthless as companies offshore employees or go virtual. We own a bunch of empty buildings. T trying to foist off on scam artists. Government insurance left holding the bag and retirees get lass than expected. Lawyers will profit, tho.

This has become an industry best practice. What would the basis for a lawsuit be? So many management Karens seem to have ambulance chaser attorneys on speed dial.

ATT needs that cash . . . Fuxk the people that earned it.

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AT&T being sued over moving pension to Athene

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