Impact of "Pension Projection Act" Legislation on Value of Lump sum Pensions

TO: All Local Presidents: at&t (Legacy-S) Units

Dear Colleagues:

As you know, we have gotten many questions from members and opinions from financial advisors about the impact of the recent pension legislation on the calculation of lump sums under the Legacy-S at&t pension plan. CWA has consistently said that the law only set a minimum standard and that our benefit would not be diminished by the law However, up until now, we had been unable to get at&t to acknowledge this in writing.

I'm pleased to report that after considerable effort, we have finally prevailed. Attached is a letter from at&t that clearly states: "Bottom line, the participant will receive the better of the result, using the interest and mortality table combination provided by their Plan or the new minimum rate and mortality table combination provided in the PPA"

Please share this information with your members.

Sincerely, Seth Rosen
Vice President
CWA District 4