Zoom Call June 5, 2024
LOCAL LEADERS
May 21, 2024
Dear AT&T Local Presidents and RMC National Board Members:
As you know, last year AT&T transferred payment and administration of our retirees’ pensions to Athene, a life insurance company. We believe that this transaction threatens the retirement security of our members, and are supporting our AT&T retirees in their class action complaint against AT&T.
We are holding a town hall meeting via Zoom on June 5 at 8 pm ET / 5 pm PT so that you, your members, and retirees can learn more about the transaction and the legal complaint. To register, please visit cwa.org/ATTtownHall.
We will be emailing the message below to our AT&T members and retirees, but we know that we do not have contact information for everyone. I would appreciate it if you also reached out to your AT&T members and retirees to let them know about this important meeting. In addition to the email, we are providing a flyer with a QR code and a social media graphic to assist in your outreach efforts.
Thank you for everything you do on behalf of our great union.
In Unity,
Claude Cummings Jr.
President
| cc: | CWA Executive Board |
| CWA Staff |
AT&T Pension Town Hall Flyer
AT&T Pension Town Hall Social Media Graphic
Email that will be sent to AT&T Members and Retirees
To AT&T Members and Retirees -
As many of you know, last year AT&T entered into an agreement with subsidiaries of a life insurance company called Athene Holding Ltd, under which pension annuity benefits covering over 96,000 retiree and beneficiaries would be transferred out of the AT&T Pension Plan and to Athene, which would take over payment and administration of these benefits.
CWA has serious concerns about transactions like these, which are often called "pension risk transfers." Pension benefits transferred to life insurance companies are no longer backstopped by the Pension Benefit Guaranty Corporation (PBGC) but are instead covered by the applicable state insurance guaranty association, under which protection levels vary across the country.
In addition, we have concerns about the business practices of Athene, which is wholly-owned by a private equity firm called Apollo Global Management. Athene is an outlier among life insurance companies with risky, non-transparent business practices that include off-shored reinsurance and high concentrations of risky assets.
CWA has been working to fight back against this transaction which threatens the retirement security of our members.
AT&T retirees have recently taken an important step by filing a class action complaint against AT&T, alleging that AT&T and its advisors breached their fiduciary duty in their selection of Athene. Pension plan sponsors have an obligation under federal law to select the safest available partner for transactions such as these, and we agree with our retirees that Athene does not live up to that standard.
Our retirees are asking the court to require AT&T to backstop all the benefits transferred to Athene, ensuring benefits maintain the same guarantees that retirees expected to have through the course of their career.
If you would like to learn more about AT&T’s transaction with Athene and this legal complaint we are hosting a town hall call on June 5th at 8pm ET / 5pm PT. Please click here to register.
CWA 501 Third Street NW Washington, DC 20001
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