AT&T retirees recently saw life insurance that was long guaranteed to them drastically cut back on Dec. 31, 2021.
It comes as no surprise that major corporations are continuing to walk back and turn away from their commitments to their loyal retirees. This is something that all our members can clearly understand.
In early 2021, AT&T announced a plan to cut management retirees’ life insurance benefits at the start of 2022 to just $15,000 and cap the death benefit at $25,000, effective at the start of this year. Retirees were initially promised benefits dependent on their final year’s compensation.
Retired AT&T union members, who had life insurance also based on their pay, will now be capped at $25,000 for their life insurance and death benefit, respectively.
This change affects an astonishing 220,000 AT&T retirees enrolled within life insurance and death benefits program.
In a December 26 Wall Street Journal article, the details of this harmful action to retirees were laid out. The article addresses the harsh life insurance reduction retirees’ families would be dealt in the new year.
Your Association of BellTel Retirees board leaders and Retirees for Justice conducted multiple news briefings for the Wall Street Journal’s telecom reporters, helping give them greater context and insights about how harmful the switch was.
Much like the case of Verizon suddenly announcing the transfer of 41,000 pensions in 2012, retirees and their families are cast aside even as senior executives reap outsized rewards. It’s notable and ironic that their benefits still include significant company subsidized life insurance, all at the final expense of those who gave decades of devotion and sacrifice to the company.
Despite months of protest from fellow retirees, AT&T refused to change course and opted into what it calls “challenging” decisions to purportedly balance the needs of its business.
Meanwhile, those “challenging” decisions AT&T made are clearly contradicted by the life insurance benefits that will be received upon retirement, including about $1.5 million alone for CEO John Stankey.
Decades ago, AT&T prided itself on its quality retirement and benefits so much, that executives used this to defend the company’s lower wages compared to competitor’s packages, citing that sticking with AT&T meant a more substantial retirement for all.
That “cradle-to-grave” way of thinking meant something very significant to workers and their families, with certain expectations they would always be well taken care of in the future.
By winter 2021, AT&T forgot this ethos and made its choice to harm its loyal retirees who built the company.
Many are questioning how can anyone continue to trust AT&T leadership, especially while executives are the beneficiaries of a double standard and getting VIP treatment? Simply put, retirees and the workforce already traded our labor and cannot go back in time to make different arrangements for the future.
Ultimately, retirees are now at the mercy of AT&T’s top executives. It illustrates why we need to stick together now to protect the pensions and benefits we earned over 20, 30, 40 years of work, and are fully entitled to!
This article was originally published in the 2022 Spring Newsletter.
FAQs
Since 2022, AT&T no longer offers a subsidy to help cover your monthly premiums. Once you turn age 65 you are Medicare-eligible, and will have to transition out of AT&T's retiree health care plan and into Medicare.
What are AT&T benefits for retirees in 2024? ›
AT&T also stated that beginning for the benefit year of 2024 and beyond the Company will offer the company health care plan for those who are Medicare eligible through AT&T Medicare Advantage Plan and the premium for retirees will be zero cost and for a dependent $50.
What is the AT&T retiree death benefit? ›
In early 2021, AT&T announced a plan to cut management retirees' life insurance benefits at the start of 2022 to just $15,000 and cap the death benefit at $25,000, effective at the start of this year. Retirees were initially promised benefits dependent on their final year's compensation.
What is the AT&T rule of 55? ›
The Separation from Service exception sometimes called “Rule of 55” or “55 Rule” is an IRS provision that allows workers who leave their job for any reason to start taking penalty-free distributions from their current employer's retirement plan once they've reached age 55.
What is the rule of 75 for AT&T? ›
The current Modified rule of 75 reads: Age and service must equal 75, and you must be a minimum of 50 years old with one exception — you qualify for retiree benefits when you have 30 years of net credited service at any age.
Did AT&T sell its pension plan? ›
The AT&T purchase from the two Athene Holdings subsidiaries transferred $8.1 billion in U.S. pension plan liabilities and the responsibility of paying benefits to about 96,000 AT&T retirees and beneficiaries, and the two Lockheed Martin purchases in 2022 and 2021 transferred a combined $9.2 billion in U.S. plan ...
Does AT&T have a package for seniors? ›
We recently reviewed AT&T's Unlimited 55+ plan and found it's one of the best phone plans for older adults who want unlimited talk, text, and data, starting at $60 monthly for one line.
What is the AT&T pension annuity? ›
Pension Payout Options
There are three payout options for AT&T employees: Single Life Annuity, Joint Life Annuity (50%, 75%, or 100%), or a Lump Sum. Both of the annuity options are taxable as income, while the lump sum isn't taxed until withdrawn, but is subject to required withdrawals.
Is the AT&T Medicare Advantage plan good? ›
Expert Reviews of AT&T Medicare Advantage Plan 2024
According to renowned healthcare analyst, John Smith, “This plan offers an impressive range of benefits at an affordable price. It's a great option for seniors looking for comprehensive coverage.”
What happens to AT&T when someone dies? ›
You can transfer the deceased person's line to another AT&T account, but you must pay any past due balance before the line can be moved. If there's an installment plan associated with the line, it will stay active and transfer along with the line.
How it Works. You are eligible for a vested pension benefit after five years of service, but your benefit will be negatively affected if you do not reach the age AND service breakpoints for your employment position, as shown in the chart below. You must meet BOTH minimum requirements.
Do retirement benefits end at death? ›
When a participant in a retirement plan dies, benefits the participant would have been entitled to are usually paid to the participant's designated beneficiary in a form provided by the terms of the plan (lump-sum distribution or an annuity).
How do I lower my AT&T plan? ›
Compare or change plans
- Go to Change my plan to see your current plan and our other plans.
- Scroll through our other plans. Select Compare plans to get a side-by-side view.
- Compare plans and decide which one you want.
AT&T Unlimited 55 Plus
AT&T has its Unlimited 55 Plus plan for slightly cheaper ($60 for one line or $80 for two lines). The plan includes 5G access as well as voice and data connectivity in Canada and Mexico. Current AT&T customers will need to visit an AT&T store to verify that they qualify for the plan.
What is the $30 dollar plan for AT&T? ›
5GB data for $30/mo.
With 5G access and unlimited talk and text.
Do you lose health benefits when you retire? ›
Because most workers receive health benefits from their employers, retirement often disrupts health insurance coverage. Some employers offer health insurance to retirees, but many firms are cutting re- tiree health benefits by passing more costs to retirees or eliminating benefits altogether. Few alternatives exist.
What is AT&T retiree CarePlus? ›
Your benefits under the CarePlus Program includes both Experimental CarePlus and Expanded CarePlus. Experimental CarePlus is an optional supplemental medical program designed to cover specific procedures not covered under AT&T's basic medical programs.
What is the AT&T pension benefit plan? ›
Pension Payout Options
There are three payout options for AT&T employees: Single Life Annuity, Joint Life Annuity (50%, 75%, or 100%), or a Lump Sum. Both of the annuity options are taxable as income, while the lump sum isn't taxed until withdrawn, but is subject to required withdrawals.
