AT&T

Advisors of CFG Wealth Management have worked with employees and retirees of AT&T for many years, providing education, planning, retirement income strategies, and investment management solutions to employees looking for help and guidance. Through our years of experience working with AT&T employees, our Advisors have developed an in-depth knowledge of the company’s employee retirement plans. Whether you’re looking for guidance on saving towards a future retirement, or you’re close to retirement and need advice on the best method to transition your retirement plans for your particular situation, CFG Wealth Management can help you.

Below you will find the link to our AT&T Retirement Planning Review Questionnaire, contact phone numbers and the website for your company plans, and current news (if applicable) and important information regarding the AT&T retirement plans.

Form: AT&T Retirement Planning Review Questionnaire

AT&T Pension Plan & 401(k) Service Center: (800) 416-2363
Fidelity NetBenefits: http://netbenefits.fidelity.com

Upcoming AT&T employee Seminars

Learn more about Brokerage Link

AT&T Pension Plan Interest Rates:

Managers (Non-Bargained)

1st Quarter 2018 Pension Interest Rate: 3.74%
Previous Quarter Pension Interest Rate: 3.78%

Non-Managers (Bargained)

2018 Pension Interest Rate: 3.74%
2017 Pension Interest Rate: 4.03%

Lump sum distribution calculations from the AT&T Pension Plan are based on prevailing interest rates at the time an employee retires or separates from service. Generally, the lower the interest rate, the higher the lump sum distribution value and vice versa. Until 2012, the AT&T Pension Plan only used the 30-year Treasury rate, also known as the GATT rate, for lump sum distribution calculations. However, starting on January 1, 2012, the Pension Plan began using the provisions of the Pension Protection Act of 2006 (see below for more information), which began phasing in the use of the “CBR”, or, Corporate Bond Rate. Historically, the Corporate Bond Rate has run between 1.2% and 2.0% higher than the GATT rate.

For AT&T salaried managers (non-bargained), the lump sum interest rate is re-calculated each calendar quarter, using the average daily interest rates for the middle month of the previous quarter. So for example, the interest rate used for pension plan lump sum distribution calculations in the 2nd Quarter (effective separation dates of April 1 through June 30) is the average of the daily interest rates published for the month of February.

For AT&T hourly non-managers (bargained), the lump sum interest rate is re-calculated each calendar year, using the average daily interest rates from November of the previous year.

The Pension Protection Act of 2006:

Following the provisions of the Pension Protection Act of 2006, the AT&T Pension Plan has now implemented the use of the corporate bond interest rate for both non-bargained and bargained-for employees. For purposes of calculating lump sum distributions for pension plan participants, use of the corporate bond interest rate took effect on January 1, 2012, and was phased in over a three-year period, starting with a 75% GATT rate / 25% Corporate Bond rate blend in 2012 and ending with a 100% Corporate Bond rate in 2015.

* The legal information provided here is merely a summary of our understanding and interpretation of some of the current regulations and is not exhaustive.

AT&T Pension Plan Interest Rate History:

The following table displays the AT&T Pension Plan interest rates for each quarter over the past 15 years. As you can see, interest rates have declined significantly over this time period. With the implementation of the Corporate Bond Rate in future lump sum distribution calculations, along with the likelihood of broad interest rates rising on their own in the future, current pension plan interest rates may never be this low again! As a reminder, the lower the interest rate, the higher the lump sum distribution value and vice versa.

Q1 Q2 Q3 Q4
2002 5.12% 5.40% 5.65% 5.08%
2003 4.96% 4.81% 4.53% 5.31%
2004 5.12% 4.93% 5.42% 5.06%
2005 4.89% 4.55% 4.49% 4.46%
2006 4.89% 4.58% 5.20% 5.00%
2007 4.69% 4.82% 4.90% 4.93%
2008 4.52% 4.52% 4.60% 4.50%
2009 4.02% 3.59% 4.23% 4.37%
2010 4.31% 4.62% 4.28% 3.81%
2011 4.19% 4.65% 4.29% 3.65%
2012 *3.44% 3.46% 3.30% 3.08%
2013 3.36% 3.70% 3.66% 4.33%
2014 4.60% 4.39% 4.11% 3.98%
2015 4.22% 3.87% 4.23% 4.34%
2016 4.41% 4.29% 3.88% 3.54%
2017 4.03% 4.11% 3.99% 3.78%
2018 3.74% TBD TBD TBD

*The interest rate for bargained employees in Q1 2012 was actually 3.02%, as the plan still used 100% of the GATT rate during the quarter per the previous collective bargaining agreement. The interest rate increased to 3.44% on April 1, 2012 for bargained employees which was the rate through the remainder of the calendar year.

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