Rehashing a Change in the AT&T Pension Plan

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As a recruiter clients ask me all the time about their pension plan. When is the last time you checked on your AT&T pension plan? If it has been a year or two there are some things you may have missed.

As of June 1, 2018 AT&T has been giving current and former management employees the additional option to receive a full lump-sum payout. This is an excellent addition to the plan given that previously, management employees could only receive either a partial lump sum and residual monthly annuity, or a full monthly annuity.

The full lump-sum payout option gives you the ability to receive your entire benefit as a one-time payment once you retire. You may then roll it over into an IRA and invest it in whichever way you choose.

You are Eligible for The Full Lump-Sum If:

  • You left AT&T and your last day was on or after May 31, 2018.
  • The day you choose to receive your payment (commencement date) is on or after June 1, 2018.
  • You have not started receiving pension payments already.

Fidelity, the AT&T pension plan record keeper, has been administering full lump-sums since October 1st, 2018.

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Is a Lump-Sum right for me and my family?

The best part of the lump-sum is that you can control how to invest and use your money, which can help you protect against inflation. It also offers more beneficiary/inheritance options. However, there are some cons associated with taking a full lump-sum. For instance, you are exposed to market risk, and there’s a greater chance of running out of money in retirement.

On the other hand, the monthly annuity payout option has its own pros and cons which need to be weighed. The biggest advantage of the monthly annuity is it gives you a source of income for life. It also shields you from market risk. The cons however are that you are not protected from inflation and if your cost of living increases the payments will not reflect that.

Ultimately it is up to you and your family to look at these pros and cons and make the best decision regarding your financial future.

If you are looking for more details about your benefits, reach us at TechStaffer.

If you are wanting to get a better understanding of your 401(k), visit

If you want to know if your eligible for your pension plan, visit

For more information on AT&T job postings, visit