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Questions and Answers

Please note: While all questions are reviewed, only representative Q&A will be posted on the Web site. Specific questions cannot be addressed in this forum.

Questions and answers added March 15, 2010

Q:   Now that the new agreement has been ratified, when will we receive the wage increase and retroactive pay? -- various employees and locations

A:   Employees are currently scheduled to receive the retroactive pay and wage increase in their last regular paycheck in March.

Questions and answers added March 4, 2010

Q1: How will the November pay outs be handled? Will the rewards be paid on a separate check delivered to the employee's work location or will the reward be direct deposited? – JC; Atlanta, Ga.

A1: Under the Success Sharing Plan, cash payments will be made as soon as practicable after the award year and will normally occur the payday of the last full pay period in November. These payments will be handled the same as your normal paycheck.

Q2: When will we be able to stop the mailing out of our pay check stubs if we have direct deposit and do not want the stub mailed out? JC; Atlanta, Ga.

A2: Employees will not be required to request a stop of their check stubs.  The process will be implemented within 30-60 days of ratification.  Employees without reasonable access to a computer, printer or those who do not have a company email address will continue to receive check stubs.

Q3: Is there a deadline for the agreement to be reached? – JM; Greensboro, N.C.

A3: All provisions of the tentative agreement are expressly conditioned on ratification of the agreement by March 5, 2010.

Q4: Are we still going to have a 401k plan and will AT&T still match our contributions with the new contract if it is ratified? – PS; Attalla, Ala.

A4: Yes, under the agreement, the Company will continue to provide matching contributions to the 401k savings plan.

Q5: Do we know how many term conversions there are going to be at each work center? – JS; Anderson, S.C.

A5: No, at this time, we do not know how many term conversions there are going to be at each work center.

Questions and answers added February 26, 2010 – Updated 7:45 pm CT

Q1: How does the new agreement impact employees going back to school? For instance, for personal enrichment classes, are we still given $500 and is the money paid directly to the institution? Also, is the education cap still $4,000 toward a degree and is it paid directly to the institution? – MP; Tucker, Ga.

A1: Courses taken for personal/career development which are non-company related may be approved for up to $500 of the annual maximum provided they result in Continuing Education Units (CEUs), are administered by an accredited institution, and otherwise meet tuition assistance eligibility requirements. This payment will be made to the employee.

Q2: There are Term Technicians with more than two years (for example, NCS date September 13, 2007) who have been hired in Florida. If one of those Term Technicians was laid off July 1, 2009 and rehired same date in Louisiana, with no break in service date, will he be a candidate as a Term Technician with over 24 months service, to apply for regular BAU jobs? – WD; New Orleans, La.

A2: Under the tentative agreement term employees are eligible to submit requests after 24 months time in assignment. If a term employee who was work completed in one exchange is rehired in another exchange, the term assignment starts over.

Q3: Have the amounts for SIPP and termination remained the same? – RW; Knoxville, Tenn.

A3: There were no changes made in the SIPP or termination pay tables. However, since termination pay is calculated by weekly wages, the amount of the termination pay would increase.

Q4: Does the new contract provide for individual basis for out-of-pocket (OOP) and deductibles on health care and prescription drug coverage? I have family coverage (me and my husband). Do we have to reach $3,000 OOP maximum or is our OOP maximum reached per person once we individually pay out $1,000? This also applies to drug coverage. Do we have to pay out $1,800 total before the OOP maximum is met, rather than $900 for each of us? – GT; Gallatin, Tenn.

A4: Once an individual reaches the $1,000 Individual Network Out-of-Pocket Maximum, benefits for eligible Network expenses, incurred for that individual during the remainder of the calendar year, are paid at 100 percent. Under these circumstances, there is no requirement that the family first meet the $3,000 Family Network Out-of-Pocket Maximum.

Q5: Does the monthly medical payments of $10/$25 in 2011 and $35/$75 in 2012 count toward the deductable? How would we go about canceling the medical coverage if we decided to do so? – DG; Greenville, S.C.

A5: No, the monthly contributions do not count towards the Annual Deductible. If an employee would like to waive coverage, they may make that election during Annual Enrollment.

Q6: If we don't retire before 2012, will we lose ¼ of our lump sum amount we get when we do retire? – YH; Orlando, Fla.

A6: We believe your question is regarding the Pension Protection Act (PPA). If so, please see previous Q&A #8 from February 19 for more details.

Q7: Since the last incentive payout was made in March 2009 for the 2008 year, does that mean if this contract is ratified we will receive retroactive payment for the "Success Sharing Plan" for the "award year" for 2009 since the contract will end before November 2012? – KW; Gulfport, Miss.

A7: The last award year under the prior incentive award plan was 2008, paid in March 2009. There is no 2009 award year. For explanation on SSP payout, please see Q&A #14 from today.

Q8: If the tentative agreement ratifies, it appears that CWA District 3 has at least postponed the loss of the non-decreasing lump sum. If AT&T decides not to renew this agreement, will those of us that would like to continue working – but not at the loss of monies already earned – be given notice that we might start the retirement process in order to prevent this loss? – PJ; Boiling Springs, S.C.

A8: The non-decreasing lump sum provision in the AT&T Pension Benefit Plan – Southeast Program will not change for the life of the 2009 tentative agreement.

Q9: Does this new tentative agreement have a COLA pay adjustment during the contract period? – ML; Goldsboro, N.C.

A9: No, there is no Cost of Living Adjustment (COLA) in the tentative agreement.

Q10: How do you find out what step in this wage band you are at? My wage scale is WS16. – NC; Jackson, Miss.

A10: Steps are associated with “wage length of service” on the SE wage scales.

|Wage Length of Service |Step |

|(in months) | |

|Start |1 |

|6 |2 |

|12 |3 |

|18 |4 |

|24 |5 |

|30 |6 |

|36 |7 |

|42 |8 |

|48 |9 |

|54 |10 |

|60 |11 |

Q11: Will we get any bonus checks in this new contract? – SR; Lithonia, Ga.

A11: We believe our employees should share in the overall success of the company, and under the tentative agreement they will have an opportunity to do so through a new cash reward program called the Success Sharing Plan. The plan is keyed to AT&T stock appreciation, and in Year 3 employees will have an additional opportunity to gain rewards through annual dividend equivalent payments. More information on the Success Sharing Plan is available in the answers to previous questions on this site, or on Page 3 of this document recapping highlights of the agreement.

Q12: How is the retroactive pay distributed? – SH; Tucker, Ga.

A12: Retroactive pay will be handled the same as your normal paycheck. This retroactive wage increase as well as the other provisions of the tentative agreement is expressly conditioned on ratification of the agreement by March 5, 2010.

Q13: If I'm surplused or bumped before November 2010, when the Success Sharing Plan payout is to be distributed, will I get my Success Sharing Plan payout check? – MP; McDonough, Ga.

A13: Regular, Temporary and Term Employees on the payroll on both the beginning and ending dates of the award year, and who work for a minimum of three months within the award year, will be eligible for the award.

Q14: According to the highlights of the SE tentative agreement, "Cash Payments will be made as soon as practicable after the award year and will normally occur the payday of the last full pay period in November." What dates are considered to be the "award year"? – KW; Gulfport, Miss.

A14: The Award Years for the Success Sharing Plan are as follows:

|Award Year |Beginning Award Value |Ending Award Value |

|2010 |October 1, 2009 closing AT&T stock |September 30, 2010 closing AT&T stock |

|(October 1, 2009 to September 30, 2010) |price |price |

|2011 |October 1, 2010 closing AT&T stock |September 30, 2011 closing AT&T stock |

|(October 1, 2010 to September 30, 2011) |price |price |

|2012 |October 3, 2011 closing AT&T stock |September 28, 2012 closing AT&T stock |

|(October 3, 2011 to September 28, 2012) |price |price |

Q15: I'm a term employee (two years) and I have been trying to become permanent, but there are no positions open right now. If the contract is ratified, will I go into the new leveraged position, or do I have an option? What will happen if I become permanent after the contract? – LA; Miami, Fla.

A15: Under the tentative agreement Term Sales Associates can volunteer and be considered for regular, full-time Sales Consultant vacancies, the new leveraged position. Employees who are converted from temp/term to regular under the new tentative agreement will be considered as New Hires for purposes of benefits.

Q16: I am a term employee and I have been working since November 2007. The agreement says we can bid after 24 months. Why can't we bid on jobs now? – AW; Gallatin, Tenn.

A16: There were no provisions for term employees to bid in the 2004 agreement. The tentative agreement allows for Term employees hired under Article 1.33 (temp/term employees) to submit a job request after 24 months in assignment. Term Service Representatives and Term Sales Associates are covered by a Memorandum of Agreement (MOA) and this MOA does not have a provision allowing Term Sales Associates or Term Service Representatives to bid on job vacancies. However, under the terms of the tentative agreement, Term Sales Associates can volunteer and be considered for regular, full-time Sales Consultant vacancies, the new leveraged position.

Q17: Is there any change to the "75" rule for retirement that makes you retirement eligible? – SH; Nashville, Tenn.

A17: There is no change to the definition for retirement eligibility under the AT&T Pension Benefit Plan – Southeast Program in the tentative agreement. The provisions of the tentative agreement are expressly conditioned upon ratification of the agreement by March 5, 2010.

Q18: Why did the Union propose to add the Network Assistant title to Skill Group 6? What skill group is the Network Assistant currently in? – SH; Charlotte, N.C.

A18: The Network Assistant was added to Skill Group 6 as an additional bumping opportunity, for the titles eligible to bump, within Skill Group 6. As shown in Appendix A, Part III, the Skill Group for Network Assistant is listed in the last paragraph.

Q19: The Company agreed to add Network Assistants to Skill Group 6 and to add Office Assistants to Skill Group 8. Is this in all states or just Birmingham, Ala.? What titles are in these two groups? – PK; Louisville, Ky.

A19: The Family of Skills groupings apply to all employees in the BST Working Agreement. For the current Family of Skills, see Appendix A, Part III of the BST Working Agreement.

Q20: The rumor mill says double time after 49 hours has been eliminated. Is this true? – JB; Boynton Beach, Fla.

A20: No, the double time threshold remains at 49 hours.

Q21: I would like clarification about the proposed changes to the Employee Tuition Assistance program. I read that company will reimburse not only tuition, but books and fees as well. I also read that the payment will be paid directly to the employee, and he or she will in turn pay the college. Will there be any changes to the approval process? When would the changes go into effect? What is the maximum that the company will reimburse in a year? – SR; Jacksonville, Fla.

A21: The Company will pay eligible expenses for approved courses in an amount not to exceed $4,000 in a calendar year, subject to a maximum amount of $600 per course (including tuition and associated lab fees). The reimbursement for textbooks is scheduled to be implemented no later than July 1, 2010, if the tentative agreement is ratified by March 5, 2010. Payments will be made, provided that the employee meets all applicable administrative requirements.

Q22: How will the Family of Skills changes affect Facility Technicians (FT) and Services Technician (ST)? – KF; Hiram, Ga.

A22: There are no bargained changes to the Family of Skills for Facility Technician (FT) and Services Technician (ST). The only changes to Family of Skills grouping in the tentative agreement are:

• Network Assistant added to Skill Group 6

• Office Assistant added to Skill Group 8

Q23: How did the National Transfer Plan come about? Do any of the "receiving" contracts bridge time when coming from another district? It seems that the Southeast contract does not. – JF; Houma, La.

A23: Several AT&T regions participated in an intersubsidiary movement plan prior to bargaining. This tentative agreement allows employees in the BST Working Agreement to transfer to other AT&T regions. The National Transfer Plan does address how employees will be treated regarding bridging of service.

Q24: What happens if an employee has already been surplused, is bumped into a lower wage position and then subsequently gets surplused from the lower wage title – but the lower wage title does not have temp/term positions in that Family of Skills, however the previously held higher wage title does? Can that surplused employee be considered from the Partnership Job Bank for temp/term positions based on the original higher waged title they were previously bumped from? – TP; West Palm Beach, Fla.

A24: Surplus employees bump within their Family of Skills. The job security letter regarding term vacancies states that if interested, a qualified surplus employee in the Partnership Job Bank (PJB) will be offered a term vacancy within their Family of Skills. Since the job that you bump into is in the same Family of Skills as the job you were surplus from, you will offered any term vacancy within your Family of Skills.

Questions and answers added February 25, 2010

Q1: How will the health care benefits of employees retiring under the new contract be affected? – various employees and locations

A1: In general, for the life of the agreement, employees who retire under the new agreement will have their choice of two benefits plans, one of which has no premiums. When you retire, specific information on the plans, and premiums, will be available.

Q2: My question is regarding health care. When we go to the doctor for any kind of visit, will they expect us to pay anything at all (like we are now paying a copay)? Or will they just bill us once insurance has been submitted and an EOB has been sent showing what we are responsible for. – GC; Louisville, Ky.

A2: Generally, you shouldn’t pay anything at the time you receive network service. Once the network claim is processed, an Explanation of Benefits (EOB) will be sent to you showing what was paid by the plan and what amounts you are still responsible for. The specific payment policies vary between providers’ offices and you should consult your provider if you have specific questions about payment.

Q3: I have been to two CVS pharmacies, with two different previously mail order (3 month) prescriptions, asking about the new plan and new cost. I was denied both times for both prescriptions. I also called Caremark and they know nothing of this. When will this go into effect? – PW; Atlanta, Ga.

A3: The ability to fill 90-day maintenance prescriptions at a CVS retail pharmacy will go into effect as soon as administratively feasible, which we anticipate will be January 1, 2011.

Q4: Will there be no premiums for HMOs? The insurance the Company offers is the same for all employees, however, the plan you choose (HMO, PPO, POS) dictates whether or not you pay a premium for the same insurance. If you are a PPO and will have to pay a premium, and that is an issue for you, can you then switch to an HMO to avoid paying a premium? – BP; Greenville, S.C.

A4: The premium for an HMO option is dependent on the relative cost of that HMO option compared to the Company plan. HMOs are offered at the Company’s discretion. Your enrollment materials will reflect the options available to you along with the applicable monthly contribution, and you will have the opportunity to elect the option that you determine best meets your needs.

Q5: Who covers the health care increase if the insurance company raises the rates? Does the employee have to pay any increases or does AT&T pay? – KJ; Knoxville, Tenn.

A5: The tentative agreement specifies a set contribution amount for the non-HMO option during each year of the agreement. These amounts will not be affected by any change in cost.

Q6: If the new contract is ratified, will we be able to opt out of the Company’s health insurance program and not pay for it on a monthly basis? – DJ; Jacksonville, Fla.

A6: Yes, employees have the option to waive coverage at annual enrollment.

Q7: Retired employees received a letter advising them that all maintenance prescription drugs must be filled by mail order, or at a CVS Pharmacy, to be covered. In either case, the prescription must be on a 90-day supply basis. Will active employees also be restricted to mail order and CVS Pharmacy this same way? Will the choice to use CVS be optional for maintenance drugs, or required? – BH; Hattiesburg, Miss.

A7: Under the terms of the tentative agreement, for benefits to be paid under the plan, employees will have the option of obtaining their maintenance drugs through the mail-order program or having those prescriptions filled at a CVS retail pharmacy. For maintenance prescriptions, this requirement will apply after the prescription has been filled for the second time at a retail pharmacy.

Q8: Will service be bridged for those employees who, over time, have worked for other AT&T Companies? – various employees and locations

A8: Service bridging is very individualized and must take into account many factors, such as the Mandatory Portability Agreement and other interchange agreements, and therefore a general answer cannot be provided here. Any questions about your specific circumstances with regard to bridging should be referred to the AT&T Benefits Center at (877) 722-0020. There are no bargained changes with respect to recognizing prior service in the tentative agreement.

Q9: I was hired in May 2009 as a Temp. Will I be made a permanent employee now? – MV; Ft. Lauderdale, Fla.

A9: As with the previous working agreement, temporary employees may submit job requests after three months in assignment.

Q10: What does leveraged employee mean? – MV; Ft. Lauderdale, Fla.

A10: There is one leveraged title in the tentative agreement, Sales Consultant, and that title can only be used in the Consumer and Business Groups. The Sales Consultant is paid a 60 percent base wage and a 40 percent incentive component.

Q11: After the contract is completed, will term employees be able to get permanent positions? Now, and in the future, if they choose to do so? – CK; Jacksonville, Fla.

A11: Term employees hired under Article 1.33 (temp/term employees) may submit job request after 24 months in assignment. Term Service Representatives and Term Sales Associates are covered by a Memorandum of Agreement (MOA) and this MOA does not have a provision allowing Term Sales Associates or Term Service Representatives to bid on job vacancies. However, Term Sales Associates can volunteer and be considered for regular, full-time Sales Consultant vacancies, the new leveraged position.

Questions and answers added February 24, 2010 – Updated 5:15 pm CT

Q1: If the contract is ratified by March 5, 2010 when can we expect to receive our retro pay? – KS; Birmingham, Ala.

A1: Retroactive pay is tentatively scheduled to be paid in March. The retroactive wage increase as well as other provisions of the tentative agreement is expressly conditioned on ratification of the agreement by March 5, 2010.

Q2: I was promoted & will be effective on March 1st. Will I still get retro pay back to August thru the end of February?

A2: Yes, you will receive retroactive pay for the period you were working in a bargaining unit position. The retroactive wage increase as well as other provisions of the tentative agreement is expressly conditioned on ratification of the agreement by March 5, 2010.

Q3: Once the SE contract has been ratified, will we receive the annual increase, which was due August of last year, plus the retro pay?

A3: Yes, because the wage increase will be retroactive, you will receive a payment for the period back to August 9, 2009 (tentatively scheduled to be paid in March), and then a wage increase in your regular paycheck prospectively. The retroactive wage increase as well as other provisions of the tentative agreement is expressly conditioned on ratification of the agreement by March 5, 2010.

Q4: If the contract is retroactive to August 2009, will I be able to deduct my school books? For last year's class? – AC; Jacksonville, Fla.

A4: Under the revised tentative agreement the targeted implementation date for reimbursement of textbooks under the Tuition Aid Plan is July 1, 2010, or earlier if administratively practicable.

Q5: Since it is apparent that AT&T wishes to retain its quality and loyal workforce, and present them with a Fair and Balanced Contract, what type of Job Security is presented within this Tentative Agreement? – CV; Germantown, Tenn.

A5: There were several improvements made to Job Security. For example, ESIPP will be offered on every surplus (previously not required in economic surplus), increased Optional ESIPP request to two (previously one), participation in National Transfer Plan, renewed the existing terms of the Job Offer Guarantee MOA, enhanced the Family of Skills for Groups 6 and 8. For additional information please see the Employment Security Commitment section in the highlights document posted on this site.

Q6: Why can't the employees that are already with the company receive full hourly compensation for example I've been working with the company since February 4. 2008. I've seen people with less seniority become perm and receive SSP – at least the term employees should receive the SSP based on our revenue that we've made. – VG; Conyers, Ga.

A6: Under the revised tentative agreement, temporary/term employees will now be eligible for the Success Sharing Plan.

Q7: What happens if a surplus employee (hired prior to August 9, 2009) goes into the bank, uses all of their bank time and has to exit the company? Would that person be considered a new hire if they returned to the company under "Recall Rights"? – DP; Columbia, S.C.

A7: If recalled under the provisions of Article 7.02 they will be treated as a current employee.

Q8:  What are the details of the National Transfer Plan (NTP) – AK, Conyers, Ga.

A8:      The NTP is a new process for the Southeast that will allow eligible employees to move to other regional bargaining unit jobs before external hires.  Job offers made under the NTP will follow the order of consideration below after regional contract processes:

1.      Surplus employees currently on the payroll and surplus employees involuntarily laid off within the last twelve (12) months.

2.      Current employees requesting transfer to other regions.

NTP will become effective once ratified by all regions.

Q9:     What organizational unit changes are in the new agreement? What zone changes are in the new agreement? – CW; Birmingham, Ala.

A9:      For purposes of force adjustments, organizational units in the revised tentative agreement are:

1.      ABS (AT&T Business Solutions) Customer Services

2.      Consumer Markets

3.      CPE – Business Field Service Operations

4.      Customer Information Services

5.      Finance

6.      Network Field Operations

7.      Network Operations

8.      Organization Support

9.      Shared Services

10.  Small Business Solutions

11.  Wholesale

There were no changes to wage zones.  However, several cities that were previously unclassified were classified.  For example, Old Town, Fla. and Nortonville, Ky. were both classified as Wage Zone C.

Q10:     I would like to know if flex scheduling will be removed from the contract? – CE; Orlando, Fla.

A10:     There is no change to flexible scheduling language in this tentative agreement.  However, we increased the number of Excused Work Days to be used flexibly in Network from one to two.

 

Questions and answers added February 20, 2010

Q1: We now have Blue Cross Blue Shield and BlueChoice. Are we still going to have BlueChoice? – PS; Greenville, S.C.

Will we still have the option of HMOs such as AvMed for medical? Will the costs be the same? – RP; Miami, Fla.

A1: HMOs are offered at the discretion of the Company; the determination is made periodically and has not yet been made for 2011.

Q2: In your example for the payout for the Success Sharing Plan, you show what happens when the stock price appreciates. Is it correct to assume that if the stock price does not appreciate but goes down there will not be a payout? – SC; Alpharetta, Ga.

A2: That is correct; in any given year if the stock price does not appreciate there would be no payout on the stock appreciation piece for that year.

However, in Year 3 employees will have an additional opportunity to gain rewards through annual dividend equivalent payments; as with stock appreciation, cash payments will be based on the annual dividend multiplied by 150 Success Units. That payment is over and above the annual payment tied to increases in the Company’s stock price, and employees would receive it even if the stock does not increase in price that year.

Q3: On Jan. 1, 2011 the new health care plan should go in effect, and when that happens if an employee goes to a doctor because he/she has stomach trouble or a sinus infection, any type of ailment for which you need to go see a doctor within the network, other than just a routine examination, what is the patient responsible for? – CA; New Orleans, La.

A3: For non-preventive care, employees are responsible for an annual network deductible of $350 for individuals and $700 for families. Once that deductible is met, the employee will be responsible for 10 percent of network-negotiated charges, while the Company plan pays 90 percent of those charges. So for example, if you have already met your network deductible and receive a network-negotiated charge of $250, the Company plan would pay $225, and you would be responsible for $25.

If an employee reaches the annual network out-of-pocket maximum for network providers ($1,000 for individuals, $3,000 for families), the Company plan would pick up 100 percent of network charges after that.

Remember that the company will continue to pay 100 percent of the cost of all network preventive care, including items such as annual physicals and well child care.

Q4: Since employees under the Southeast Region contract continue to operate under the old contract, does it mean that they will receive the 'annual bonus' money for 2009? – ED; Decatur, Ga.

A4: No. The last award year under the prior incentive award plan was 2008, paid in March 2009.

Q5: If the contract is ratified a rep will get 3 percent the first year and second year and 2.75 percent the third year. What about reps who have max out tenor, do they only get the once-a-year raise, or are there any six month step raises for them also? – DC; Fayetteville, N.C.

A5: Employees at the top of the wage scale will receive annual increases of 3 percent in Year 1, 3 percent in Year 2, and 2.75 percent in year 3.

Q6: What exactly is being done to the Family of Skills Groups 6 and 8, and why? – DF; Birmingham, Ala.

A6: Family of Skills is used in the force adjustment process to group titles with similar skills together for the purpose of bumping. In response to a Union proposal to broaden the Family of Skills groupings, the Company agreed to add Network Assistant to Skill Group 6 and to add Office Assistant to Skill Group 8.

Questions and answers added February 19, 2010

Q1: I’m confused by the Southeast Wage and Benefit Calculator, and/or disagree with the numbers I come up with. Can you explain how it works? – various employees and locations.

A1: The wage and benefit calculator was developed to allow bargained employees to look at the estimated impact the tentative agreement will have on them. After entering some basic information, employees can view a series of illustrative comparisons that show their current pay and benefits compared to the pay and benefits under the tentative agreement.

The wage and benefit calculator provides information regarding your increase in pay and increase in healthcare costs under the tentative agreement, as compared to August 2009. For wages the “Increase in Pay” represents the cumulative effect of your proposed wage increases over the life of the tentative agreement. This includes the proposed annual wage increase and wage progression (if applicable). Below is an example of a Services Technician (WS30 – Zone A) at top pay (Step 11) with no overtime.

[pic]

Remember, the comparison is based on your wages as of August 2009. Without wage increases or progression increases over the next three years, you would receive $174,000 ($58,000 x three years) in wages. With the wage increases negotiated, you would receive $184,400 ($59,700 + $61,500 + $63,200) in wages. Therefore, the difference would be $10,400 ($184,400 - $174,000) in increased wages over the life of the tentative agreement. For those in progression, step increases would also be considered in the increase in pay; an employee in wage progression would see a substantially greater wage increase

The “Change in Health Care Cost” shown represents the estimated difference between out-of-pocket health care expenses under the tentative agreement, and out-of-pocket health care expenses under the current plan. All expenses are assumed to be in-network. Below is an example of an individual medium user of healthcare.

| | | |First Year |Second Year |Final Year |Total |

| | | |of Contract |of Contract |of Contract | |

|Change in Healthcare Cost | | |$0 |$300 |$700 |$1,000 |

The $300 in the second year of the contract represents the estimated increase in out-of-pocket health care expenses over estimated current costs. This includes monthly premium contributions, deductibles, coinsurance, copayments, and any other eligible expenses. The estimates are based on AT&T average claim data for an individual medium user.

| | | | | | |

For participants who select "hospitalization" for the type of health care user, the change in health care cost is measured using a utilization of "hospitalization" in the second year and "high" in the final year of the tentative agreement.

Subtracting the increased costs in healthcare from the total increase in pay results in “Net Gain to You.” In the above example, $10,400 total increase in pay minus $1,000 total increase in healthcare costs results in $9,400 net gain to you.

When using the calculator, do not use the back and forward buttons on your browser as this will not store your results.

Q2: If the contract is ratified, how will the medical plan work for the remainder of 2010? I understand there will be no premiums until 2011, but what are the details regarding deductibles, coinsurance, and out-of-pocket maximums? Will it be like we have in the old contract or like the new contract? – NR; Plantation, Fla.

A2: The tentative agreement does not provide for changes to the medical plan in 2010.

Q3: How do we know what is considered "Preventive Services?" For example, are visits to endocrinologist, for diabetics, considered "Preventive Services?" – OP; Sunrise, Fla.

A3: A list of examples of covered preventive health care items – including things like annual physicals and well child care -- can be found in the Summary Plan Description for your medical plan; however, it is not an all inclusive list.

The preventive care guidelines of each respective medical claims vendor will be followed and may change from time to time, based on industry-wide prevailing medical guidelines and procedural changes. You can contact the medical claims vendor to find out whether a specific service will be considered preventive. You also should discuss this with your physician, as the coding from the physician generally determines whether a service is processed as preventive.

A visit to an endocrinologist for treatment of diabetes would generally not be considered preventive care.

Q4: In 2011 am I going to have to meet the $700 family deductible before my prescriptions are paid with the $10 generic and $40 brand amounts? Or are the prescriptions exempt from the deductible? – MN; Birmingham, Ala.

A4: No, you do not have to meet your medical deductible first. The network copays for the prescription drug program are separate.

Q5: Does the 10 percent co-insurance we have to pay go to what the provider charges, or what they accept? If the doctor charges $500 and we pay 10 percent of $500 and he will accept $250 from insurance, that does not look to be a 90-10 split? – DA; Bremen, Ga.

A5: When using a network provider, the charge the provider submits -- and on which the 10 percent coinsurance amount you pay is calculated -- is based on a contract rate, which generally would be less than the amount billed by the doctor. This is an additional benefit of using network providers under the plan.

Using your example, the $500 billed charge is reduced to $250 through the network-negotiated contract between the physician and the third party administrator. The $250 is then paid 90 percent ($225) by the Company plan and 10 percent ($25) by the participant. You would pay 10 percent of the reduced $250 charge, rather than of the original $500 billed charge. Of course, this assumes the deductible has been met and the out-of-pocket maximum has not been met.

Q6: How does this impact employees that have already been surplused? Will they have an opportunity to bump a temp/term employee on a recall? – SL; Palm Beach Gardens, Fla.

A6: When employees are recalled from layoff, (Article 7.02), they return to a regular vacancy, not a temporary or a term position. However, Article 7.03 allows laid-off employees, if interested, to be considered for temporary and term vacancies for which they qualify. Acceptance of such vacancies will not affect their status as a laid-off employee.

Additionally, under the new National Transfer Plan employees who are declared surplus and subsequently involuntarily laid off will receive priority placement before external hires after regional contract processes for jobs they may have an interest in, in other participating companies for one year.

Q7: Does the new contract re-utilize the title Field Service Technician from the old BSLD or are they going to be combined into the title Electronic Technician? Is the pay scale going to be the same for both jobs? – SB, Alpharetta, Ga.

A7: BSLD Field Technicians will have their title changed to Electronic Technician and will be on Wage Scale 32.

Q8: How will the new Pension Protection Act affect our pension in the future? That is pre-1999,and later. Please go into some detail, with possible examples.– LH; Asheville, N.C.

A8: The Pension Protection Act of 2006 (PPA) introduced some changes regarding pension funding requirements, including a new interest rate/mortality table for calculating certain lump sums. Under the terms of the new agreement, the Pre-1999 Pension Band Benefit will adopt the new interest rate and mortality table beginning January 1, 2012, with the new interest rate being phased in over four years (25 percent each year).

The lump sum under the cash balance formula is not affected by this change, nor is any previously calculated lump sum amount under the non-decreasing lump sum rules of the pension plan. As the lump sum calculation differs for each employee and is based on a number of variables including age, service and future interest rates, employees may utilize the modeling tool that is available on the pension vendor’s website in order to run an estimated projection of their individual pension benefits under the PPA rules. The pension vendor can perform the projection on behalf of the participant if the participant is unable to use the pension modeling tool.

Q9: Does the Success Sharing Program replace the already-in-place bonus program which paid out in March each year? – BG, Hartselle, Ala.

A9: The last award year for the prior incentive award plan was 2008, paid in March 2009. We believe our employees should share in the overall success of the company, and under the tentative agreement they will have an opportunity to do so through a new cash reward program, called the Success Sharing Plan. The plan is keyed to AT&T stock appreciation, and in Year 3 employees will have an additional opportunity to gain rewards through annual dividend equivalent payments. More information on the Success Sharing Plan is available in the answers to previous questions on this site, or on Page 3 of this document recapping highlights of the agreement.

Questions and answers added February 18, 2010

Q1: How exactly will the Company determine what department will be all leveraged, and will existing Sales Associates still be able to stay in that department should they decide to stay with the traditional pay schedule? – RH; Miami, Fla.

A1: The leveraged title can only be used in the Consumer and Business groups. Regular Sales Associates have the choice to move to the leveraged title, and have a one-time retreat right within six months.

Q2: What is the base pay for leveraged employees? Do term employees have a choice, or do they have to bid for leveraged positions? – BH; Shreveport, La.

A2: Sales Consultant – Wage Scale 27L base pay

Aug 9, 2009 Start Top @ 36 mos

Zone A $400.00 $604.50

Zone B $400.00 $595.50

Zone C $400.00 $591.00

The incentive pay is 40 percent of the applicable step of WS 27.  Sales Consultants have the ability to earn up to 300 percent of the incentive amount plus base wages, allowing for a Sales Consultant to earn significantly more compensation in this new position.

If leveraged vacancies exist, term Sales Associates will have a choice to be considered utilizing regular selection criteria.

Q3: Will it take two months for us to get the first incentive payments? – TW; Louisville, Ky.

A3: Sales Consultants, on leveraged titles, will normally receive their incentive pay within 1 to 1½ months following the end of the incentive period.

Q4: Will those on leveraged titles be paid only 60 percent of their wages while on vacation? – CP; Birmingham, Ala.

A4: Sales Consultants will receive base wages plus applicable differentials while on vacation.

Q5: There are several temps in the business billing collections or accounts receivable dept. Are we going to get a retroactive check from August [like regular employees]? – WF; Nashville, Tenn.

A5: The retroactive pay adjustment to Aug 8, 2009 applies to all employees. This retroactive wage increase as well as the other provisions of the tentative agreement is expressly conditioned on ratification of the agreement by March 5, 2010.

Q6: What process will be used to select term employees for regular full-time positions, and is there a limit on the number converted to full-time positions? – CT; Covington, La.

A6: Under the new agreement, on a one-time basis and within 90 days of ratification, the Company may convert temp and term employees in their current title and exchange in seniority order. Under this one-time basis, temp and term employees will not be converted until 20 percent of vacancies in each exchange have been filled by qualified regular candidates who had a request on file as of September 30, 2009. (The 20 percent includes vacancies filled through Articles 7.01K, 7.02, 10 and 12.)

Q7: What will be the new contract’s expiration date? Will the lump sum guarantee be through the end of the contract? – SP; Roswell, Ga.

A7: This proposed new contract is effective retroactively to Aug. 9, 2009 and expires Aug. 4, 2012. The lump sum option for a pension payout and the non-decreasing lump sum provisions are in effect through the expiration of the contract.

Q8: Do the annual deductibles for network providers count towards the annual medical out-of-pocket maximums for network providers? Or are they on top of each other? As a family user would I expect to pay $3,700 before it is covered 100 percent or would I pay a max of $3,000 in medical expenses for the year? – BH; Charlotte, N.C.

A8: No, the annual medical out-of-pocket maximum for network providers of $3,000 for family coverage does not include the $700 you would pay towards the annual network deductible for family coverage. Once the annual network deductible is met, the individual will be responsible for 10 percent of network negotiated charges until the annual network out-of-pocket maximum has been met. Once the annual deductible and the annual network out-of-pocket maximum have been met, that is the point at which the employee no longer pays for network eligible expenses; the plan would pay 100 percent of those expenses. Remember that preventive care received in network is paid 100 percent by the plan and non-network services have a separate deductible and out-of-pocket maximum and are paid at different rates.

Questions and answers added February 17, 2010

Q1: Can you explain the Success Sharing Plan in simple terms? I find it very confusing. – LF; Charlotte, N.C.

A1: Employees, including temporary and term, have the opportunity to share in the Company’s success through a new cash reward program keyed to the Company’s performance. Each employee will receive 150 Success Units per year that will be multiplied by increases in stock price over a year’s term. And in Year 3, employees will have an additional opportunity to gain rewards through annual dividend equivalent payments – as with stock appreciation, payments will be based on the annual dividend multiplied by 150 Success Units.

For example, AT&T’s stock price on Oct. 1, 2009 was $26.61. Let’s say it increased by $5 to $31.61 on Sept. 30, 2010. The total payout for 2010 would be $5 x 150 success units = $750.

For 2012, the payout will be based on both the stock appreciation value and the dividend rate value. So for example, say the value of AT&T’s stock again increased by $5 between Oct. 1, 2011 and Sept. 30, 2012. Once again you would have a stock appreciation value payout of $5 x 150 success units, or $750.

But in addition, for illustrative purposes only, let’s assume AT&T’s quarterly dividend was 41 cents for each quarter in the award period:

Dec. 31, 2011 dividend 41 cents

March 31, 2012 dividend 41 cents

June 30, 2012 dividend 41 cents

Sept. 30, 2012 dividend 41 cents

Total dividend $1.64

The payout for the dividend rate value would be $1.64 x 150 success units, or $246.

The total payout for the year would be $750 stock appreciation value + $246 dividend rate value = $996.

Q2: I would like to know what’s on this contract for term employees. What are the policies if term employees would like to transfer to a different position at AT&T? Are term employees eligible for tuition reimbursement? If I leave the company, will I be eligible for re-hire, or how long would I need to wait to reapply? – MM, Kennesaw, Ga.

A2: Under the agreement, temporary/term employees will now be eligible for the Success Sharing Plan, which provides an opportunity to share in the Company’s success through a new cash reward program keyed to the Company’s performance.

A term employee hired for a special project may submit requests for equal or lower level jobs and receive consideration for placement after a minimum of 24 months in the term assignment. And on a one-time basis and within 90 days of ratification of the agreement, the Company may reclassify temporary/term employees in the Network organization to regular. Temporary and term employees also may be converted before hiring new employees.

Term employees are not eligible to participate in the tuition aid program.

A former temp/term employee can re-apply for employment at any time.   However, many factors would determine re-hire eligibility, such as length of previous service, reason for separation, and the length of time since separation from the Company.

Questions and answers added February 16, 2010

Q1: What is the difference between annual deductibles and annual medical out-of-pocket maximums? If I meet the annual family annual deductible of $700, why is there an out-of-pocket maximum? – LF; Charlotte, N.C.

A1: The difference is that the Annual Deductible represents that amount an employee must pay first, before the medical plan begins to pay. The Out-of-Pocket Maximum amount, however, represents the point at which the employee no longer pays for eligible expenses.

In other words, once the network or non-network Annual Deductible is met, the medical plan begins to pay 90 percent for network sickness/illness care (there is no benefit for non-network preventive care but the plan will still pay 60 percent for non-network sickness/illness care). Once the network or non-network Out-of-Pocket Maximum is met, the plan pays 100 percent of eligible applicable expenses. The Out-of-Pocket Maximum is there as a safety net to limit the amount the employee has to pay out-of-pocket for eligible expenses, even in the case of a major illness or injury that requires costly treatment and a lengthy hospital stay.

Remember that the Company will pay 100 percent of the cost of all network preventive care, including things like annual physicals and well-child care, regardless of whether your deductible has been met.

Q2: Can I fill a maintenance prescription at CVS and not have to use the mail-in program? – LF; Charlotte, N.C.

A2: Yes. As a convenience to our employees, the company is allowing maintenance prescriptions to be filled at CVS/pharmacy locations. This will permit employees to pick up prescriptions for maintenance drugs at CVS retail pharmacies while still receiving the lower mail order rates.

Q3: Does this agreement cover premise technicians in Mobile, Alabama? – WW, Mobile, Ala.

A3: No. Premise technicians are not covered by this agreement.

Questions and answers added February 12, 2010

Q1: How will this new plan work if I take one of my kids to the doctor on Jan 2, 2011 and he charges $100 for a visit? Do I owe $10? Or am I on the hook for the first $350/$750? This seems to be a big change from paying $20. I would like to see details on deductibles, coinsurance, and out-of-pocket maximums. – TN; Panama City, Fla.

A1: Under the terms of the agreement, if the office visit is for preventive services and a network provider is utilized, the plan pays 100 percent for the visit.

If the office visit is 1) for an illness or injury, 2) the doctor is a network provider and 3) the deductible has been met, then the employee is responsible for 10 percent of the network negotiated fee, which generally would be less than the amount charged by the doctor.

If the office visit is 1) for an illness or injury, 2) the doctor is a network provider and 3) the deductible has not been met, then the employee is responsible for the full amount of the network negotiated fee, which generally would be less than the amount charged by the doctor.

Under these same circumstances, once the network out-of-pocket maximum has been met, the plan pays 100 percent for the visit.

For more specific details on the agreement, please click here to read the highlights of the tentative agreement reached on Monday, February 8, 2010.

Q2: How will this new contract, if ratified by March 5, affect the craft people that have been surplused and will be off payroll March 20? – GC; Atlanta, Ga.

A2: Currently, employees covered by the core wireline contract in the Southeast region continue to work under the terms of the expired contract. Once this tentative agreement is ratified, it will replace the expired Southeast core wireline contract and the new terms would apply.

Additionally, the new contract, once ratified, would introduce some new options for some surplused employees to seek job opportunities within the company. Each surplus must be considered individually to determine what options apply. However, it would mean that if the contract is ratified by March 5, surplused or bumped employees off-payroll on March 20 would get the retroactive wages back to August 9, 2009 and any termination pay they received would be based on their new wages.

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