AT&T Pension De-Risking Move Triggers a Class Action Fight (2)

AT&T Inc. was sued Monday by four former employees challenging a 2023 transaction in which the telecommunications giant allegedly shifted responsibility for funding the pensions of nearly 100,000 workers to a “risky” new insurance company.

The proposed class action, filed in the US District Court for the District of Massachusetts, says AT&T offloaded more than $8 billion worth of pension liabilities to subsidiaries of Athene Holding Ltd. by purchasing group annuity contracts to fund the retirement benefits for 96,000 people. This transaction, known as pension “de-risking,” allowed AT&T to enjoy an immediate profit of $363 million while jeopardizing workers’ ...