AT&T Slashed Promised Life Insurance for Former Workers--and Time Runs Out at Year-End

When Dean Allison left his job as a property manager at AT&T T 0.36% in 1998, the company offered an incentive to retire: a payment of at least $63,000 upon his death.

He took the deal, figuring the money would someday help his wife cover funeral expenses, pay outstanding bills and have more to live on.

Early in 2021, AT&T told Mr. Allison it would pay no more than $15,000 if he dies after Dec. 31.

AT&’s decision to cut life insurance and death benefits as of Jan. 1 for many of the 220,000 retirees eligible for the benefits has roiled a generation of workers who say their former employer is reneging on a promise.

The cuts don’t apply to top executives, who have life insurance under a separate company-paid program, which the company can’t reduce without their permission. AT&T will pay heirs of Randall Stephenson, who left as chief executive in 2020, $3.6 million under a life-insurance plan reviewed by the board last year, securities filings show.

AT&T said that the cuts for other retirees will bring their benefits more in line with benefits at other large employers, and that the change will increase payouts at death for more than 1,000 retirees. It said only a handful of Fortune 100 companies still offer most employees life insurance that continues after retirement.


https://www.wsj.com/articles/at-t-slashed-promised-life-insurance-for-former-workersand-time-runs-out-at-year-end-11640544022?mod=djemalertNEWS