With the news that AT&T is planning to reduce their workforce this year, lots of employees are left with some challenging questions. No question may be as challenging as “how will you cover medical insurance and expenses in retirement or a transition?” As with all things in AT&T there are different rules for Craft employees versus Management employees. AT&T is keeping this information pretty close to the vest, but here is what we understand so far.
For Craft Employees:
The Union negotiated reduced costs for retirees in the last 2 contracts (the current contract expires in August 2019). Technically that current deal expires in Aug 2019, but it could very well be a negotiating point next year, and that reduced cost could perhaps be extended for another 3-4 years (typical length of the contract). The insurance costs for Craft are actually protected through December 2019 because insurance is done on a calendar year basis rather than the actual end of the contract.
For Management Employees:
The Management employees do not have the protection of a contract. In the past few years the company did offer them the opportunity to get medical insurance through the AON Healthcare Exchange (just like Craft), and provide them a HRA (Health Reimbursement Account) of $2,700 per year for a retiree (and an additional $1,500 per year for an eligible spouse) to help pay for that insurance. However, it appears they have stopped doing that as of this last Management Surplus. There is a belief that Management retirees will need to go to the insurance marketplace to get insurance – the costs in some cases are at least double (approximately $500 per month) what they were paying before as active employees.
Sound Financial has developed a reputation for being on the forefront of helping AT&T employees and retirees navigate their medical insurance options, but in this instance, there is still a lack of clarity on what AT&T will offer. We would encourage you to follow us on Facebook or LinkedIn or fill out the contact form to join our newsletter distribution list. This will allow you to stay connected as new information is released. Our goal is to partner with you as you make these challenging decisions the moment new information is available. Contact us today for a free consultation and let us help you navigate YOUR retirement or career transition journey.
Investment Advisory Services offered through Sound Financial Strategies Group, Inc. (“SFSG”), a Registered Investment Adviser. Certain representatives of SFSG are also Registered Representatives offering securities through APW Capital, Inc., Member FINRA/SIPC, 100 Enterprise Drive, Suite 504, Rockaway, NJ 07866 (800)637-3211. SFSG and APW Capital are separate and unrelated companies.
Neither SFSG nor APW Capital are endorsed by, retained by, or affiliated with AT&T. The opinions voiced in this article are for general information only. They are not intended to provide specific advice or recommendations for any individual and do not constitute an endorsement.
Posted on Thu, September 13, 2018
by Sound Financial filed under