I just opened a letter that was a few days old from Human Resources of AT&T. They stated that they had refunded the pension account to the tune of 9-1/2 billion. This deficit was of course caused by the stock market decline. I'm glad to see management taking their obligations seriously. If the market recovers this money what will they do with this advance? Both the Baby Bell I worked for and AT&T have always treated me and others fairly. I appreciate it.
"Politics can sure make a mess of "one" banking on their own future and trying to do the most prudent thing ... ya just can't seem to win when making the right choices !!"
Yes, the Bush recession did cause problems.
What really gets me though is people who expect to retire early and never work again. You think your company or the government should take care of you for the rest of your lives. Meanwhile you expect young people to take pay and benefit cuts, piled on with a lack of investment in their future, to pay for it.
Meanwhile, people of my generation expect to work in some capacity right up until we die in no small part because boomers think they should be able to retire at 50 and get free ride the rest of their lives. You need to get used to the idea that young people cannot, will not and should not pay for this.
If current workers need to claw back some of this by having retirees pay for a reasonable share of their medical bills, I'm all for it.
Not sure who you are addressing. My investment in AT&T is about 6,200 shares. At current pricing that's over 200 grand. Buying the stock option whetted my interest in investing. My first purchase in the mid 50's was just 4 shares.. I've bought into many other stocks since. Even put money into 3 start up companies. One paid off really well. I sold last year for a better than 8% compounded gain since 1963. It is a well established company that makes a well known brand of sporting goods. The other two went down the drain but the one more than made up for them. I used AT&T shares to stay debt free when I bought my first house in 1963. Many of my co-workers preferred to blow their money on booze, tobacco, ATV's, etc., etc.
They didn't exactly treat you fairly if you were w/ATT when the pensions were converted to cash-balance accounts.
Interestingly enough, back when Mike Armstrong was CEO, AT&T was overfunded in their ERISA funds (my recollection was that it had +13 Billion overfunded). That overfunding was skimmed off to help purchase two cable companies at a combined cost of over 100 Billion $'s. In very short order those same two companies were sold off for pennies on the dollar, and the retirees took it in the pants. It's nice to see that the current version of AT&T is stepping up to the plate to bring their funding up to snuff.
Heh, by the way, What flavor is that Koolaid?
" pensions were converted to cash-balance accounts. "
That was why I left AT&T after more than 20 years service. BECAUSE THEY SCREWED
LONG TERM EMPLOYEES WITH THAT CASH BALANCE GARBAGE. At the time, I read that the ceo was given a 2ndary pension to make up the difference ...but the emps got shafted.
I decided to roll my pension into an IRA but have to 'retire' out to do it...which i did.
I'm on Medi-Care. They do pay for my part B prescription though. These things were contractual I believe. Maybe your's were not. I don't know as I took an early retirement in 1983. PT&T always treated us fairly. They treated their people well as they could even during the depression and without a union. Actually, the relative pay vis-a-vis comparative companies went down after the union got a toehold in 1947. Beirne was a crook that took union dues and used them to further his own personal views and politics rather than promote the welfare of his members.