AT&T plans to put $9.5B into pension fund

Oct. 20, 2012 at 1:25 PM

NEW YORK, Oct. 20 (UPI) -- U.S. telecommunications giant AT&T said it planned to use preferred equity shares to contribute $9.5 billion to a retirees' pension trust fund.

The plan requires approval from the Labor Department, which will review the risk associated with a pension fund contribution that could lose value should the company's share values decline, The Wall Street Journal reported Saturday.

However, AT&T is a large, stable company whose share values are unlikely to collapse, the newspaper said.

The company said in a regulatory filing it has 240,000 employees. The pension plan affects 600,000 of its retirees, the Journal said.

The contribution "means a strong future for the fund" said the Communications Workers of America, the union that represents hundreds of thousands of AT&T workers and retirees.

AT&T was making the move "at a time when some companies are eliminating or underfunding their pension plans," a union spokeswoman said.

Related UPI Stories
Latest Headlines
Trending Stories
Ted Cruz campaign pulls ad featuring softcore porn actress
Report: Clinton Foundation subpoenaed by State Dept. watchdog over charity projects
Ruby Rose, Gigi Hadid react to Kanye West's lyric about Taylor Swift
Kristen Wiig impersonates Peyton Manning on 'The Tonight Show'
NYC police officer found guilty of manslaughter in Brooklyn stairway shooting