AT&T’s benefits package is known for its robust offerings, designed to support employees at every stage of their careers. As we head into 2025, a few new adjustments and provisions are set to expand these benefits even further. In this guide, we’ll explore key areas of the AT&T benefits program, providing insight into what’s available and how employees can leverage these resources to enhance their financial well-being and long-term goals.
Understanding Your AT&T Pension Plan Options
AT&T’s pension plan is the core of its employee benefits. The pension provides regular income for retired employees for investment and expenses.
Employees need to remain at AT&T for at least five years to qualify for the pension plan. The amount of the pension each employee receives is based on their length of service and salary. Unionized employees’ pension bands also figure in the calculation. AT&T employees must be at least 55 to earn the full pension—those who withdraw funds earlier get a reduced amount.
Upon retirement, employees can choose a traditional monthly pension, offering steady income for life without a cost-of-living adjustment. Alternatively, both union and management employees have the option to convert their pension into a lump-sum benefit. Union employees can convert the full pension amount, while management employees can convert a portion, allowing them to roll these funds into an Individual Retirement Account (IRA) for greater control. This lump-sum option provides flexibility, though it also comes with the responsibility of managing investment risks and market fluctuations.
The pension plan also covers survivor benefits if the employee dies before retirement. In that situation, the beneficiary gets 50% of the monthly annuity. Spouses may choose to receive the payment in a lump sum.
How AT&T’s 401(k) Plan Supports Your Retirement Goals
Retirement funds are typically the centerpiece of investment plans. The 401(k) plan in the AT&T benefits package helps employees save for retirement with tax-deferred contributions that the company matches.
The 80% employer match on Basic contributions kicks in after an employee accumulates one year of service. The dollar amount of the Basic contribution for non-managers is calculated according to their banded pay, while managers’ Basic contributions comprise 6% of their salaries.
For 2024, the contribution limit to 401(k) plans is an annual maximum of $23,000, with an additional catch-up limit of $7,500 for those age 50 and older. The 401(k) contribution limits for 2025 are expected to be $23,500 for those under 50, with additional catch-up contributions of $7,500 for those under 60, and $11,250 for those aged 60–63. Many financial advisors recommend making the maximum contribution if possible.
AT&T’s Healthcare Plan
Healthcare is a major priority for just about everybody, and the AT&T benefits plan addresses this need. Eligibility for Medicare is the focus of AT&T’s health plan.
Employees who are younger than 65 and not yet eligible for Medicare qualify for certain plans, depending on their service and retirement dates, plus a few other factors. When you retire, you might be allowed to keep your plan, although you can expect to pay a little more in premiums. You have the chance to change plans at the end of the year during open enrollment.
When you become eligible for Medicare, you can continue with your AT&T plan. However, you and your Medicare-eligible dependents must enroll in Medicare Parts A and B.
Life Insurance Options for AT&T Employees
The AT&T benefits package offers two types of life insurance policies. The company pays for basic life insurance in an amount roughly equal to one year’s salary. Those who meet certain service and age requirements are eligible for basic life insurance after retirement.
Employees may also qualify for supplemental life insurance. AT&T has a group plan that helps employees get affordable supplemental insurance. Again, the cost and coverage limits for supplemental life insurance are linked to your employment classification, salary, and length of service.
AT&T Benefits for Loyal Employees
AT&T may be a technology company, but humans are its most important capital asset. Their retirement, health, and insurance benefits show a commitment to taking care of hardworking employees and managers. Speak with your HR representative or financial advisor to find out more details about the AT&T benefits package.
Learn More With Tranquility Path
Tranquility Path Investment Advisors helps AT&T employees make the most out of their income and benefits packages. We’re happy to answer whatever questions you may have about the process or your overall financial situation.
Contact Tranquility Path Investment Advisors to learn how you can maximize your AT&T benefits today. Contact us online, schedule a no-obligation conversation, or reach us at (732) 856-4324.