Home / How We Help / AT&T

How does the Modified Rule of 75 Impact Health Benefits for AT&T employees?

One of the largest factors for those planning to retire is how will they account for their health insurance. For AT&T employees this can be a little more complex as they have to factor in their eligibility status based on "the modified rule of 75". Today we want to take a look at the modified rule of 75 and what it means for an AT&T employee's health benefits.

The modified rule of 75 is a calculation of years of service and age that is used to determine eligibility for pension and health benefits. Employees must meet these breakpoints to avoid losing benefits or seeing a reduction in benefits when they retire. The rule works by adding your years of service and your age to see if they add up to at least the number 75. The chart below explains the breakpoints:

Years of ServiceAge
30Any
2550
2055
1065

The breakpoints above are important because they are a minimum requirement. The formula of simply getting to the number 75 is not the only factor. For example: if an employee were age 52 and had 23 years of service, they would not be fully eligible and could see a reduction in benefits if they retire at that point.

So how does this impact AT&T employees' health insurance? With all the recent shake ups and structure changes, many managers and employees have had to make some difficult decisions regarding potentially retiring early. In these cases, employees must have a clear understanding of where they are in regard to the modified rule of 75 to make sure they know what will happen with their health benefits. If an employee retires early and does not meet the rule of 75, they could lose their AT&T health benefits if they retire early. This could be a very costly decision!

When the time comes for you to make some challenging decisions regarding your future with AT&T, do you know all the questions you need to ask, like how you qualify for the modified rule of 75? Sound Financial has spent 30+ years developing a reputation for being on the forefront of assisting AT&T employees and retirees to navigate their career transition options. Contact us today for a free consultation and see how we can help you in your career transition. We would also encourage you to follow us on Facebook or LinkedIn or fill out the contact form to join our newsletter distribution list. Our goal is to partner with you as you make these challenging decisions 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.

Powered by ID digital