The November interest rates, which AT&T uses to determine lump sum values for everyone who retires in will be released in mid December. Rates increased in November and if that trend holds we could see a reduction in lump-sum values for AT&T employees who retire in . If you decide to stay past December 31st, , you could see a significant reduction in your lump sum. Interest rates are trending upward, and when interest rates rise, lump sums fall. If you believe that interest rates in November will be higher than November (Which is likely) you may want to consider retiring before January 1st, . This will allow you to lock in the medical coverage and take advantage of a lower interest rate, which will increase your lump-sum amount.

AT&T declared that the healthcare benefits for retirees will undergo substantial modifications. Traditionally, a retiree's primary health insurance is transferred from the AT&T plan to Medicare when they become eligible for it (for most people, this is at age 65).

As many of you are aware, AT&T no longer offers healthcare reimbursement accounts to retirees who left their jobs after January 1, . These accounts are meant to help with out-of-pocket expenses, additional coverage, or supplemental coverage.

Those who retired prior to January 1, , as stated in AT&T's Summary Plan description, were entitled to an HRA credit of $2,700 for themselves and $1,500 for a qualifying dependent. This results in an annual HRA credit of $4,200. With a 20-year life expectancy, the HRA credit may equal $84,000 for a coupl

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In addition to the benefits already lost, AT&T said that retirees who left the business on or after January 1, , which is rapidly approaching, would no longer be eligible for any medical coverage. (This may not apply to all employees, but if you live in Texas or another area where AT&T is prominent, you should check with the benefits office for particular information regarding your benefits.) AT&T will no longer pay a portion of the retirees' monthly premium for medical or dental. Group dental and medical coverage from AT&T will continue to be offered at the full cost of coverage. It's important to think about whether it would be beneficial to advance your retirement date and keep these benefits if you plan to leave AT&T in the coming years.

For a couple with a 20 year life expectancy the HRA credit could account for $84,000 in total.**

Healthcare is not the only benefit being reduced after January 1st, . Life insurance coverage will also be diminished. Starting in life insurance will be paid a flat rate of $15,000 as opposed to a percentage of income. AT&T will also offer a one-time opportunity to purchase supplemental life insurance during annual enrollment as we near the end of . The supplemental life insurance will be in addition to what the company already pays for and will be available at a lower rate than the individual life insurance product market. 

**$84,000 figure based an eligible former employee and their eligible dependent receiving full HRA credit for 20 years.

Healthcare challenges are easier to navigate when you fully understand the medical coverage AT&T extends to employees and retirees. According to publicly available information, AT&T maintains an active defined benefit pension plan, which provides retirement income based on factors such as years of service and compensation history. AT&T also offers retiree healthcare benefits to eligible employees, which can provide meaningful coverage for those who retire before reaching Medicare eligibility at age 65. Understanding how each AT&T benefit interacts with the others inside your retirement plan gives you the confidence to make well-informed decisions.

Sources: 

AT&T Summary Plan Description. AT&T, , p. 18.

AT&T Summary Plan Description HRA. AT&T, , pp. 10, 11