AT&T’s Shifting of Pension Annuity Risk Survives Legal Challenge

AT&T Inc. defeated a lawsuit by retirees challenging a transaction that shifted responsibility for funding nearly 100,000 pensions to an insurance company, a move they criticized as overly risky.

Judge Nathaniel M. Gorton adopted a 93-page report from a federal magistrate judge who said the retirees hadn’t shown the telecom company breached its fiduciary duties under ERISA by choosing an annuity provider they disliked.

Gorton, however, batted away AT&T’s objection to that portion of the report finding the retirees had suffered an injury giving them standing to sue, saying there’s “little question as to whether an annuity recipient is harmed ...