AT&T Slashed Promised Life Insurance for Former Workers. The company, which is sparing its executives from the cut, says it brings benefits in line with what other firms offer. When Dean Allison left his job as a property manager in 1998, the company offered an incentive to retire: a payment of at least $63,000.
AT&T will pay heirs of Randall Stephenson, who left as chief executive in 2020, $3.6 million. The cuts for other retirees will bring their benefits more in line with benefits at other large employers, AT&T says. It said only a handful of Fortune 100 companies still offer most employees life insurance that continues after retirement.
Today’s AT&T Inc. is the product of decades of splits and mergers. Other offshoots of that breakup have treated retirees’ benefits differently. “If they had told me this 10 years ago, that they were going to cut this, I could have done some planning,” he said.