Participants of our traditional Cash Balance pension plan at Frontier and AT&T (Legacy T) are Bargained Employees of East Core CWA (excluding Appendix F of the East Core CWA contract) hired or rehired before August 9, 2009. This pension plan has a Cash Balance Formula and the interest credits are the greater of the (a) 30- Year US Treasury rate from prior November and (b) Minimum 4.00%
As you may have seen lately in the news, the 30-Year US Treasury Rate has been climbing over 4%. This rate is determined by the average rate for the month of November and is published mid-December each year. In December 2023, the rate was announced as 4.66%, so our interest credits for 2024 were 4.66%. In December 2024, the rate was announced as 4.54%, so this new interest rate is reflected in our pension accounts effective January 2025.
FYI: Participants in our Bargained Cash Balance Program #2 are Bargained employees hired into Appendix F of the East Core CWA contract and Bargained Employees hired after August 8, 2009 in the AT&T East Core CWA contract. This pension plan has interest credits already at 4.5%
Frontier new hires, hired after October 16, 2021, do not participate in either pension, instead, they have an enhanced 401(k) Savings Plan of 100% of the eligible contributions up to 6% of eligible compensation.
If you have any questions, you can email me at lgibson@cwa1298.org or call/text me at 203 206-0821
