Last year I was told the pension plan was underfunded by $1.5B. Will AT&T make an honorable effort to close that gap now that the employment is terminated for so many, or does the shortfall continue to be swept under the rug?
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Just wait until they pull the pension benefit from you just like they did the medical part. Retire by this date or no more pension. The rest of us only have a 401k and no pension. Been that way for anyone hired in the past 12 years.
@OP AT&T plans to add $1.5B by the end of 2026 which will bring the funding level to 95%
Even though Athene isn't front and center, Apollo is a mountain and also pays out pensions to Lockheed Martin. With each year passing, I'm more confident. Private Equity stinks when you're the stone they're squeezing blood out of, but when you're the one getting paid, you're getting paid.
Famous last words, right? Cross fingers, throw salt, knock on wood, close ladders, avoid mirrors, all of it.
Retire and take the lump sum option. Problem averted!
The pension fund will go bust within the next 10 years
Athene is highly regulated and must report on the financial health and asset backing of its pension group annuities. However, because this was a Pension Risk Transfer (PRT), Athene reports to state insurance regulators rather than to the federal government's Pension Benefit Guaranty Corporation (PBGC).
Here is how Athene’s reporting and accountability work:
State Insurance Regulators: Athene files annual statements detailing the assets backing these pension annuities with state departments of insurance. These are publicly available documents.
No PBGC Coverage: Because the pension was converted to an insurance annuity, it is no longer insured by the federal PBGC. Instead, the guarantees fall under state insurance guaranty associations.
Direct Retiree Communications: Athene is responsible for tax reporting (issuing 1099-Rs for retirees) and managing direct monthly payments.
Corporate Separation: Once the PRT deal was finalized, AT&T shifted the liability completely to Athene, meaning AT&T’s standard corporate reports do not reflect the day-to-day performance of these individual annuities.
Cook the books and pay everyone.
@OP you have bad info. It is not underfunded.
@OP Being underfunded by a small amount can be a blessing. A fully funded pension plan qualifies for Federal rules for termination. When Athene took over existing retiree pensions they were fully funded from the pension plan. 20% of the total, I believe. The pension is in good shape compared to alternatives like SS or selling it off to an insurer.