Labor Dept Amends AT&T's Billion-Dollar Pension Securities Exemption
Published Date: 8/3/2026
Notice
Summary
Prohibited Transaction Exemption (PTE) 2014-06 provided an exemption for AT&T to contribute approximately $9.21 billion of employer securities (the Preferred Interests) and other assets to the AT&T Pension Benefit Plan (the Plan). This notice amends PTE 2014-06 to permit certain modifications (the Modifications) that were made with respect to the terms and provisions governing the Plan's holding and disposition of the Preferred Interests. Absent this amendment to PTE 2014-06 (Exemption Amendment), the Modifications would have resulted in violations of the prohibited transaction provisions of the Employee Retirement Income Security Act of 1974 (ERISA) and/or the Internal Revenue Code of 1986 (the Code).
Analyzed Economic Effects
5 provisions identified: 4 benefits, 0 costs, 1 mixed.
AT&T Plan Received $80 Million
The AT&T Pension Benefit Plan's Trust received an $80 million cash payment no later than October 15, 2018 in connection with the Modifications described in this exemption amendment.
Preferred Interests Distributions Defined
The Preferred Interests contributed to the Plan had a liquidation value of $25.00 per Preferred Interest and carried distribution rights of $1.75 per Preferred Interest, totaling $560 million per year in cash payable to the Trust as measured on the date of the Contribution.
Preferred Interests Made Transferable
Effective October 15, 2018, the Modifications made the Preferred Interests transferable by the Trust and subsequent holders without AT&T's prior approval, allowed any holder to exercise a put option requiring purchase, replaced the prior Call Option with a Redemption Option, and changed the exercise periods and certain registration obligations.
Exemption Covered Specific Transactions
Between October 15, 2018 and April 5, 2023, certain ERISA and Code prohibited-transaction provisions did not apply to AT&T and the Plan with respect to (a) the Trust's holding of the Preferred Interests, (b) granting the Redemption Option and dispositions upon its exercise, and (c) the Trust's holding and disposition in connection with the Put Option, provided the conditions in Section VI were satisfied.
Plan Fees Limited to Fiduciary Costs
The amendment states that the Plan did not incur fees, costs, or other charges in connection with the covered transactions other than fees and expenses of the Independent Fiduciary for duties required by the exemption.
Personalized for You
How does this regulation affect your finances?
Personalize government policy and PRIA will tell you what this federal register document means for your household, plus every other regulation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.
Key Dates
Department and Agencies
Related Federal Register Documents
2026-14917, Electronic Disclosure by Group Health Plans Under ERISA
Group health plans can soon share important info online instead of paper, making it easier and cheaper for everyone. If this rule passes, plan administrators must notify members about electronic disclosures but still offer paper copies if requested. This change affects anyone in group health plans under ERISA and aims to save time and money starting after the rule is finalized.
2026-11140, Federal Independent Dispute Resolution Operations
Starting soon, health plans and insurers must share clearer info when they pay or deny surprise medical bills. They’ll use special codes to explain these decisions, especially when dealing with folks they don’t have contracts with. This helps patients and providers understand bills better and speeds up fixing disputes, with no extra costs for most people.
2026-05492, Retirement Security Rule: Definition of an Investment Advice Fiduciary: Notice of Court Vacatur
The court has canceled the Department of Labor’s 2024 rule that changed who counts as a trusted investment advisor for retirement plans. Starting April 20, 2026, the old rules from 2020 will be back in charge, affecting financial advisors and retirement plan managers. This means advisors should review their practices to stay on the right side of the law and avoid costly mistakes.
2025-14281, Pooled Employer Plans: Big Plans for Small Businesses
Small businesses get a big boost with new guidance on pooled employer plans (PEPs), which help them offer better, cheaper retirement savings options. The government is asking for feedback to create clear rules that make joining these plans easier and more affordable. Starting soon, these changes aim to save workers money and help small employers attract great employees.
2026-11222, Exemption for Certain Prohibited Transactions Involving the Goldman Sachs Group, Inc. (Goldman) Located in New York, New York
Starting June 9, 2026, and lasting five years, certain Goldman Sachs asset managers in New York can keep using a special exemption despite past legal issues. This helps retirement plans work smoothly with Goldman managers while making sure they follow important rules and act responsibly. If plans want to stop working with Goldman, they can do so without big costs or problems.
2026-11063, Proposed Exemption Involving the Abiomed Retirement Savings Plan Located in Danvers, MA
The Abiomed Retirement Savings Plan in Danvers, MA, wants permission to hold special financial rights called contingent value rights (CVRs) and get payments from them. Without this okay, these moves would break some important retirement rules. If approved, the exemption starts retroactively from November 15, 2022, and folks have until July 20, 2026, to share their thoughts or ask for a hearing.
Previous / Next Documents
Previous: 2026-15619, Self-Regulatory Organizations; Investors Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Extend the Implementation Timeframe of a Recent Rule Filing
Next: 2026-15621, Self-Regulatory Organizations; ICE Clear Credit LLC; Order Approving Proposed Rule Change Relating to the Clearance of Additional Credit Default Swap Contracts