On September 9, 2013, the Department of Labor (DOL) published in the Federal Register a proposed exemption that would allow AT&T Inc. to contribute approximately $9.1 billion of preferred LLC equity interests in its Mobility wireless subsidiary to AT&T’s pension plan. The exemption, if and when granted, would be retroactive, allowing AT&T to make the contribution immediately. It can be viewed as a type of “de-risking” strategy.
In-kind contributions of “employer securities” are fairly common, and are permitted to be made under a statutory exemption if certain conditions are satisfied. DOL has also granted numerous individual exemptions in the past. However, this one is significant for a number of reasons. Please see the attached memo for further details.
