Federal Register #2026-15620

Regulatory Amendment for AT&T Pension Plan Asset Management

This notice concerns a regulatory amendment by the Department of Labor's Employee Benefits Security Administration regarding AT&T Inc.'s pension plan assets. - Government Buyer: - Department of Labor, Employee Benefits Security Administration - OEM/Vendor: - AT&T Inc. and its affiliates - Products/Services: - No procurement of products or services; regulatory action only - Amendment relates to Series A Cumulative Perpetual Preferred Membership Interests in AT&T Mobility - Preferred Interests have a liquidation value of $25 per unit - Distribution rights of $1.75 per unit, totaling $560 million per year in cash to the trust - Additional $80 million cash payment made by AT&T to the trust - Notable Requirements: - Modifies terms for holding and disposing of Preferred Interests - Increases transferability, updates put/redemption options, and revises valuation methods - Ensures compliance with ERISA and the Internal Revenue Code - Prevents prohibited transactions related to pension plan asset management - No competitive procurement or solicitation for goods/services is involved; this is a regulatory exemption amendment.

Description

This notice amends Prohibited Transaction Exemption (PTE) 2014-06 to permit certain modifications related to AT&T's pension plan assets, which would otherwise have violated the Employee Retirement Income Security Act (ERISA) and the Internal Revenue Code. The exemption allows modifications to the terms governing AT&T's pension plan holdings and disposition of Preferred Interests. The amendment covers changes such as transferability of Preferred Interests, put and redemption options, and valuation methods. The exemption is effective from September 9, 2013, with specific provisions in effect through April 5, 2023.

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