CWA Comment on Voluntary Pension Contribution by AT&T

The following is from a memo from CWA to local Presidents:

“Washington, D.C. — The Communications Workers of America is pleased to see that AT&T is taking steps to further strengthen its defined benefit pension fund. Retirement security is a critical issue for working families, and AT&T’s action means a strong future for the fund.

AT&T’s announcement comes at a time when many companies have moved in the opposite direction, eliminating or underfunding their pension plans and putting workers’ retirement security at risk.

The Department of Labor will review AT&T’s request to ensure compliance with regulations designed to safeguard plan participants.”

AT&T’s Pension Funding Announcement

From Randall Stephenson, CEO

“AT&T continues to provide retirement benefits, including pensions, to our employees and retirees at a time when only about one-third of Fortune 500 companies provide ongoing pensions. As reported in our annual report, we ended 2011 with $10.2 billion more in pension liabilities than assets in our pension trust, which was largely due to the economic downturn.

To address this deficit, today we announced plans to voluntarily contribute to our pension trust a preferred equity interest in our growing wireless business, valued at $9.5 billion. While we estimate our required funding for 2013 would be only about $300 million, our Board of Directors, my leadership team and I agree it’s important that we continue to strengthen our pension fund to help ensure earned benefits will be there for our approximately 600,000 U.S. employees and retirees. This proposal requires approval by the U.S. Department of Labor.

This contribution will help us significantly improve the funding of our pension, enhancing its strength at a time when many companies have eliminated pensions. And funding the pension this way addresses our pension commitments while giving us the financial flexibility to continue to invest in our business and return value to our investors — including the hundreds of thousands of you who are also shareholders in our company.

I’m proud that we’ve found an innovative approach that will enhance the strength of the pension fund. It’s the right thing to do for our employees, our company and our investors.

Randall”

2012 Success Sharing Plan

District 6 has informed us that eligible employees can expect the 2012 Success Sharing Plan payout on 11/30/2012. The District is expecting more specific information from the company over the coming weeks, which we will share with our members here as it becomes available.

Soda Can Pop Tops

Now through the end of 2012, we are collecting soda can pop tops for our local Secretary-Treasurer, Janice Bell. Please save your pop tops and bring them to the union hall or pass them forward to your steward for collection. Thanks!