May 2024 Interest Rates used for AT&T employees

Company Name	For plan years beginning in	Year	Month	First Segment	Second Segment	Third Segment	Plan Type
AT&T	All	2024	May	5.18%	5.41%	5.62%	AT&T PENSION BENEFIT PLAN
AT&T	All	2023	May	4.91%	5.15%	5.34%	AT&T PENSION BENEFIT PLAN

Many AT&T employees who are waiting to commence their pension lump-sums, are now seeing a significant decrease in their value. When these interest rates move up or down, your lump sum amount will move in an inverse direction, so if interest rates increase, your lump sum amount will decrease and vice versa. Through the pandemic, interest rates dropped dramatically which greatly increased many lump sum payments. However, since then this trend has shifted, as interest rates have been increasing rapidly, causing a large reduction in pension lump-sum values.

Large increases in interest rates are important if you decide to take the lump-sum option since the calculation for your lump-sum is based on interest rates and your age. Your pension will be calculated based on your last date of employment and benefits start date.

How Do Rate Changes Affect Your AT&T Pension?

Pension pricing is based on interest calculations, which means an adjustment in your retirement date may lead to avoiding a serious financial hit, due to avoiding times with high-interest rates.

Everything else held equal, a higher interest rate will produce a lower lump sum. The exact changes depend on your specific age, but on average a 1% change in rates can equate to an 8% to 12% change in lump sums. On average, a 1% change could increase or decrease your pension lump sum by roughly 10%.

It's important to note that you don't have to commence your pension immediately after you retire. If you wish to delay your commencement you have the ability to defer it until a later date.

Given the current interest rate environment, we highly suggest AT&T employees discuss their options with The Retirement Group and allow us to monitor the rates and keep you up to date on the monthly changes. We can provide a complimentary cash flow analysis to show you how various retirement dates may play out.It is important to remember that every situation is unique and that by getting a cash flow analysis you'll be able to compare different types of pensions and find the best fit for your situation.

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AT&T offers a defined benefit pension plan with a cash balance component. The cash balance plan grows with annual interest credits and employer contributions. Employees can choose between a lump-sum payment or monthly annuities upon retirement.

Layoffs and Restructuring: AT&T is expanding its $8 billion cost-reduction program, which includes significant layoffs. The company has reduced its workforce by more than 115,000 employees over the past five years, with further cuts expected in 2024 (Sources: TechBlog, WRAL TechWire). Operational Strategy: The restructuring efforts are part of AT&T's broader strategy to improve efficiency and adapt to a maturing market. This includes collaborations with firms like Blackrock to create open-access networks, which could provide new growth opportunities (Source: TechBlog). Financial Performance: Despite these challenges, AT&T reported strong financial results in 2023, driven by growth in 5G and fiber services. Revenues from mobility and consumer wireline segments saw significant increases, reflecting the company's strategic focus on high-growth areas (Source: AT&T).

AT&T offers RSUs that vest over several years, giving employees a stake in the company's equity. They also grant stock options, allowing employees to purchase shares at a set price.

AT&T has consistently updated its healthcare benefits to address the dynamic healthcare landscape and ensure comprehensive coverage for its employees. In recent years, AT&T has focused on enhancing its wellness programs, introducing initiatives like virtual healthcare services and telemedicine, which have become increasingly important during and after the pandemic. These services provide employees with convenient access to healthcare, reducing the need for in-person visits and supporting overall health management. Additionally, AT&T has increased its focus on mental health resources, offering counseling services and stress management programs, reflecting the company's commitment to holistic employee wellness. For 2024, AT&T has made adjustments to its healthcare plans to better align with the rising costs of medical services and prescription drugs. The company has introduced higher contribution limits for Health Savings Accounts (HSAs) and has implemented more robust wellness incentives to encourage proactive health management among employees. These changes are essential in the current economic and political environment, where healthcare affordability and accessibility remain critical issues. By continuously evolving its healthcare benefits, AT&T aims to support its employees' health and financial well-being, ensuring they have the resources needed to navigate the complex healthcare landscape.

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Full Interest Rate update table for AT&T employees

Company Name	For plan years beginning in	Year	Month	First Segment	Second Segment	Third Segment	Plan Name
AT&T	All	2024	October	4.42%	5.04%	5.46%	AT&T PENSION BENEFIT PLAN
AT&T	All	2024	September	4.17%	4.76%	5.25%	AT&T PENSION BENEFIT PLAN
AT&T	All	2024	August	4.5%	4.96%	5.4%	AT&T PENSION BENEFIT PLAN
AT&T	All	2024	July	4.92%	5.25%	5.59%	AT&T PENSION BENEFIT PLAN
AT&T	All	2024	June	5.09%	5.28%	5.52%	AT&T PENSION BENEFIT PLAN
AT&T	All	2024	May	5.18%	5.41%	5.62%	AT&T PENSION BENEFIT PLAN
AT&T	All	2024	April	5.24%	5.48%	5.61%	AT&T PENSION BENEFIT PLAN
AT&T	All	2024	March	4.99%	5.19%	5.37%	AT&T PENSION BENEFIT PLAN
AT&T	All	2024	February	4.97%	5.22%	5.37%	AT&T PENSION BENEFIT PLAN
AT&T	All	2024	January	4.89%	5.14%	5.29%	AT&T PENSION BENEFIT PLAN
AT&T	All	2023	December	5.01%	5.13%	5.15%	AT&T PENSION BENEFIT PLAN
AT&T	All	2023	November	5.5%	5.76%	5.83%	AT&T PENSION BENEFIT PLAN
AT&T	All	2023	October	5.77%	6.14%	6.19%	AT&T PENSION BENEFIT PLAN
AT&T	All	2023	September	5.58%	5.66%	5.56%	AT&T PENSION BENEFIT PLAN
AT&T	All	2023	August	5.45%	5.52%	5.43%	AT&T PENSION BENEFIT PLAN
AT&T	All	2023	July	5.35%	5.28%	5.1%	AT&T PENSION BENEFIT PLAN
AT&T	All	2023	June	5.26%	5.23%	5.16%	AT&T PENSION BENEFIT PLAN
AT&T	All	2023	May	4.91%	5.15%	5.34%	AT&T PENSION BENEFIT PLAN
AT&T	All	2023	April	4.77%	4.97%	5.13%	AT&T PENSION BENEFIT PLAN
AT&T	All	2023	March	5%	5.2%	5.15%	AT&T PENSION BENEFIT PLAN
AT&T	All	2023	February	4.99%	5.12%	4.96%	AT&T PENSION BENEFIT PLAN
AT&T	All	2023	January	4.74%	4.98%	4.84%	AT&T PENSION BENEFIT PLAN
AT&T	All	2022	December	4.84%	5.15%	4.85%	AT&T PENSION BENEFIT PLAN
AT&T	All	2022	November	5.09%	5.6%	5.41%	AT&T PENSION BENEFIT PLAN

If you have questions about a potential AT&T surplus or would like more information you can reach the plan administrator for AT&T at p.o. box 132160 Dallas, TX 75313-2160; or by calling them at 210-351-3333.

https://www.att.com/documents/pension-plan-2022.pdf - Page 5, https://www.att.com/documents/pension-plan-2023.pdf - Page 12, https://www.att.com/documents/pension-plan-2024.pdf - Page 15, https://www.att.com/documents/401k-plan-2022.pdf - Page 8, https://www.att.com/documents/401k-plan-2023.pdf - Page 22, https://www.att.com/documents/401k-plan-2024.pdf - Page 28, https://www.att.com/documents/rsu-plan-2022.pdf - Page 20, https://www.att.com/documents/rsu-plan-2023.pdf - Page 14, https://www.att.com/documents/rsu-plan-2024.pdf - Page 17, https://www.att.com/documents/healthcare-plan-2022.pdf - Page 23

Per the IRS, for ATT INC. plan years beginning after December 31, 2007, the applicable interest rates under Section 417(e)(3)(D) of the Code are segment rates computed without regard to a 24 month average. We Recommend that you call ATT INC. at 210-351-3333 For plan years beginning in 2008 through 2011, the applicable interest rate is the monthly spot segment rate blended with the applicable rate under Section 417(e)(3)(A)(ii)(II) of the Code as in effect for plan years beginning in 2007. For plan years beginning in the stated year, the rates above are the applicable interest rates for the month and year listed for minimum present value computations under Section 417(e)(3)(D) of the Code for ATT INC.