Reuters: Technology News: AT&T will boost pension fund with $9.5 billion equity stake

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AT&T will boost pension fund with $9.5 billion equity stake Oct 19th 2012, 18:42 Fri Oct 19, 2012 2:42pm EDT (Reuters) - AT&T said on Friday it will contribute a stake in its wireless business to the company's pension plan worth $9.5 billion in an effort to secure the fund, according to a U.S. Securities and Exchange Commission filing. AT&T filed for approval for the proposal with the U.S. Department of Labor on Thursday. It said the move would not significantly affect company earnings. AT&T's pension plan was underfunded by about $10.2 billion at the end of 2011, a company spokeswoman said. "We're making this contribution, which is many times above our estimated required funding for 2013, at a time when many companies have eliminated their pensions," the spokeswoman said. The proposal comes after rival Verizon Communications Inc said on Wednesday that it will transfer $7.5 billion in pension obligations to insurer Prudential, removing a quarter of its long-term employee retirement burden with a single upfront payment. The move follows a similar deal that General Motors Co did with Prudential earlier this year.

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