September 17, 2012
Dear Mobility Union Member:
CWA Leadership Team is pleased to announce a Tentative Agreement with AT&T concerning a National Benefit Plan that makes significant improvements. Highlights of the plan include for the first time a Health Care Reimbursement Account of $500 for years 2013 and 2014 for current members. The money can be used to pay for medical costs. Also, unlike a flexible spending account, the money, if not utilized in the calendar year, will roll over into the next year.
Also, for the first time in year 2015 our members will have the opportunity to share in the success of AT&T. We have bargained a Success Sharing Plan that will allow eligible members to receive annual contributions to their Health Care Reimbursement Account, based on the performance of
the company. There are two components of the plan, the dividend rate value times 75 success units and stock appreciation times 75 success units. Complete details of determining this award can be provided by your local. Prescription drugs are no longer integrated with the deductible allowing immediate access to the prescription drug plan. Costs of the plan are no longer indexed but fixed (eliminating the company’s ability to pass escalating costs to the members). A two-tier vs. three-
tier plan – family and individual plus one – are combined. Also, the plan has a significant drop in monthly premiums for the first three years. As an example, individual premiums drop from $68 per month to $38 per month and family drops from $177 per month to $81 per month the first year.
There also have been significant improvement to the dental and vision plans. While there has been a slight increase in premiums, the plan pays out at a higher level and has more coverage. Under the current dental plan, there is an annual maximum benefit of $1,300. Under the proposed plan,
it increases to $1,750. Orthodontics increases from a lifetime maximum of $1,400 to $2,000 per individual. The vision exam copay of $15 has been eliminated and the contact lenses allowance increased from $75 to $150. These are just a few examples of improvements and complete details are included in your package.
Tuition aid now has a lifetime cap of $20,000 for an Undergraduate degree and $25,000 for a Graduate degree. If ratified all tuition currently reimbursed under the current plan will not apply to the new caps.
While health care is an extremely personal choice, it is CWA’s position that we have negotiated a less costly plan for the vast majority of our members. In today’s world, where most employers are cutting health care benefits or eliminating them entirely, CWA was able to improve health care benefits for our members.
Please take the time to review the enclosed materials and if you have more questions, please contact your local union representative. You will find a ballot and instructions for casting your vote and please make sure that it is postmarked no later than October 5, 2012. We will announce the results October 10, 2012. If ratified, the plan takes effect April 1, 2013.
Solidarity.

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MEDICAL

Benefit/Provision

Current Monthly CWA Plan

For Medical, Dental & Vision

Proposed Monthly CWA Plan

For Medical, Dental & Vision

Effective Date(s)

Current Plan for 2012

4/1/2013

Health Reimbursement Account

None

New Hires (Hired or Rehired on or after 1/1/13) None.

Current Employees (Hired or Rehired on or before

12/31/12) who are enrolled in the National Bargained Benefit Plan on the HRA crediting date. For 2013 the crediting date will be on or around

4/1/13 and for 2014 the crediting date will be on or around 1/1/14. HRA’s are not provided for employees enrolled in an HMO.

HRA Contribution 2013 2014

$500 $500

Active Full-Time Monthly Employee Contributions

For 2012*1

Ind $ 68

Ind +1 $123

Fam $177

Notes:

*Contribution amounts subject to change from time to time at the sole discretion of the Company.

1 In Puerto Rico, contributions are after-tax only.

Current Employees (Hired or Rehired on or before

12/31/12)

Contribution Amounts

2013 2014 2015 2016

Ind $38 $61 $69 $ 82

Fam $81 $127 $142 $169

New Hires are those hired or rehired after 1/1/13. New hires will pay higher premium rates for the first two years of their employment. In the 3rd year, they will move to premiums outlined in the current employee table.

2013 2014 2015 2016

Ind $110 $117 $122 $82

Fam $234 $244 $252 $169

For those hired in 2014, 2015 and 2016

2013 2014 2015 2016

Ind N/A $117 $122 $131

Fam N/A $244 $252 $270

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Annual Deductibles

For 2012

Actives (New Hires and Incumbents)

Network % of Base

and ONA Wages Max. Ind 0.5% $ 500

Ind + 1 1.0% $1,000

Family 1.5% $1,500

(Integrated Medical/Surgery and Mental

Health/Substance Abuse)

% of Base

Non-Network Wages Max. Ind 1.5% $1,500

Ind + 1 3.0% $3,000

Family 4.5% $4,500

New Hires and Current Employees

For 2013-2016:

Network / ONA

Ind $500

Fam $1,000

(Integrated Medical/Surgery and Mental Health/ Substance Abuse)

Non-Network

Ind $1,300

Fam $2,600

Annual Out-of-Pocket Maximum (OOP)

Network/ONA

(Integrated Medical/Surgery, Rx & Mental Health/ Substance Abuse and Deductible are included in this OOP)

Non-Network

(Integrated Medical/Surgery, Rx & Mental Health/ Substance Abuse and Deductible are included in this OOP)

New Hires and Current Employees

For 2013-2016:

Out-of-Pocket Maximum Amounts

(excluding Annual Deductible)

2013 2014 2015 2016

Network/ Network/ Network/ Network/ ONA ONA ONA ONA

Ind $1,500 $1,700 $2,000 $2,000

Fam. $3,000 $3,400 $4,000 $4,000

2013 2014 2015 2016

Non- Non- Non- Non- Network Network Network Network

Ind $4,500 $5,100 $6,000 $6,000

Fam. $9,000 $10,200 $12,000 $12,000

The following costs will never apply towards Out-of- Pocket Maximum nor be paid for by the plan after the Out-of-Pocket Maximum is satisfied: Deductibles • Prescription Drug copays • Any applicable monthly contributions • Any charges for non-covered health services • Any penalties for failure to comply with terms of plan (i.e., preauthorization /predetermination) •

Charges that exceed eligible expenses • Any charges for

services that are exclusions under the plan.

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RX Annual Out-of-Pocket Maximum (OOP)

For 2012:

Integrated with Medical-Surgical/Mental Health-Substance Abuse OOP maximums. Must meet deductible.

New Hires and Current Employees

For 2013-2016: No deductible.

Ind $ 900

Fam $1,800

Out-of-Pocket Maximum Provisions Applies to all Network prescription drug copays. The following costs will never apply towards Out-of-Pocket Maximum or are paid for by the plan after the Out-of- Pocket Maximum is satisfied: Any medical or mental health/substance abuse expenses • Any applicable monthly contributions • Any charges for non-covered prescription drugs • Any penalties for failure to comply with terms of plan (i.e., mandatory generic penalty) • Any charges for prescription drugs that are exclusions under the plan .

Rx Copayments/ Coinsurance:

Retail Network

For 2012:

Retail – Network Copays after Ded.

Generic $ 8

Formulary $17

Non-

formulary $35

New Hires and Current Employees

For 2013-2016:

2013 2014 2015 2016

Generic $10 $10 $10 $10

Formulary $20 $20 $30 $30

Non-

formulary $40 $40 $60 $60

Rx Copayments/ Coinsurance:

Mail Order

For 2012:

Actives (New Hires and Incumbents) Retail – Network Copays after Ded.

Generic $17

Formulary $35

Non-

formulary $70

New Hires and Current Employees

For 2013-2016:

No change from current plan except:

Mandatory mail order for maintenance RX-applies after second fill at retail.

2013 2014 2015 2016

Generic $20 $20 $20 $20

Formulary $40 $40 $60 $60

Non- $80 $80 $120 $120 formulary

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DENTAL

Benefit / Provision

Mobility CWA Plan

Current

AT&T Dental Plan

Proposed

Active New Hires and Current Employees

Effective

Date(s)

Current Plan for 2012

4/1/2013

Dental Plan

Cingular Wireless Dental Plan for Bargained

Employees***

The National Bargained Plan

• Fee for Service (FFS)*

• DHMO**

*Puerto Rico law prohibits a scheduled dental benefit, cannot be administered as bargained in Puerto Rico.

Note: If Network provider, paid at contracted rate. If non-Network provider, paid at reasonably and customary amounts.

**Currently, DHMO not available in Puerto Rico

AT&T Dental Plan

• PPO

• ONA

• DHMO (available at the discretion of the

Company)

Note: ONA is paid at contracted rate, if seeing a Network provider. If non-Network provider, paid at reasonable and customary amounts.

Employee

Classification

Regular Full-Time and Regular Part-Time

Employees

Regular Full-Time and Part-time Employees

New Hire

Eligibility

Company subsidy first day of the month following completion of one month NCS.

New hire cannot enroll in unsubsidized coverage.

Company subsidy begins on the first day of the month in which 6 months of net credited service (NCS) is attained (also referred to as term of employment (TOE)).

Active Full-Time Contributions

Participant

Contributions

FFS DHMO Ind. $2 $1

Ind. + 1 $4 $2

Fam. $6 $3

In Puerto Rico, contributions are after-tax only.

Dental PPO or DHMO (if available) for 2013-2016: Ind $3

Ind +1 $9

Family $16

In Puerto Rico, contributions are after-tax only.

Active Part-Time Contributions

Based on Scheduled hrs/week:

• Greater than or equal to 30 but less than 40 hrs:

25% of full cost of coverage

• Greater than 20 but less than 30 hrs:

50% of full cost of coverage

Less than 20 hrs: 100% full cost of coverage with no Company subsidy.

Based on Scheduled hours/week:

• Greater than or equal to 20 hours = 50% of full cost of coverage.*

• Less than 20 hours = 100% of full cost of coverage* with no Company subsidy.

* Note: Calculation of the full cost of coverage is subject to change from time to time at the Company’s discretion.

Annual

Deductible

FFS

Network/Non-Network: $25 per individual per year – combined Network/Non-Network

DHMO: None

PPO:

Network/ONA: $25 per individual

Non-Network: $50 per individual

DHMO: None

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Benefit / Provision

Mobility CWA Plan

Current

AT&T Dental Plan

Proposed

Annual Maximum Benefit

FFS

Network/Non-Network: $1,300 per Individual (Not to exceed $1,300 combined Network/Non- Network)

DHMO: None

PPO:

Network*/ONA*: $1,750 per individual

Non-Network*: $1,300 per individual

*Not to exceed $1,750 combined Network/Non- Network

DHMO: Unlimited, except Orthodontic.

Diagnostic and Preventive

FFS

Network/Non-Network: Preventive: 100% of R&C, Ded. waived

DHMO: 100%

PPO:

Network/ONA/Non-Network: Preventive: 100%, Ded. Waived

DHMO: Scheduled Patient Charge varies by procedure

Minor (Basic) Restorative

FFS

Network/Non-Network: Per schedule of allowances, after Ded.

DHMO: 100%

PPO:

Network/ONA: 90%, after Ded. Non-Network: 70%, after Ded.

DHMO: Scheduled Patient Charge varies by procedure

Major

Restorative

FFS

Network/Non-Network: Per schedule of allowances, after Ded.

DHMO: 75%

PPO:

Network/ONA: 80%, after Ded. Non-Network: 50%, after Ded.

DHMO: Scheduled Patient Charge varies by procedure

Orthodontia

FFS

Network/Non-Network: Per schedule up to 50%

after Ded. DHMO: 60%

PPO:

Network/ONA: 80%, after Ded. Non-Network: 50%, after Ded.

DHMO: Scheduled Patient Charge varies by procedure

Orthodontic Lifetime Maximum

FFS

Network/Non-Network: $1,400

DHMO

24 months of treatment per individual, per lifetime

PPO:

Network*/ONA*: $2,000 per individual

Non-Network*: $1,400 per individual

*Not to exceed $2,000 combined

Network/Non-Network.

DHMO: Limited to one course of treatment per lifetime. Two years max.

Outside Network Area (ONA)

Currently, not available.

• ONA benefit provided to employees who reside in a zip code which does not meet the Network standards.

• ONA benefits are equivalent to PPO Network benefits.

• Enrollees who are in Network will be offered the

PPO option only.

• Enrollees who are located outside the Network zip code criteria will be offered the ONA option only.

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VISION

Note: Unless otherwise noted, lenses covered include: Single Vision, Bifocal, Trifocal or Lenticular, Standard Plastic Lenses

Benefit/Provision

Mobility CWA Plan

Current

AT&T Vision Plan

Proposed

Active New Hires and Current Employees

Effective Date(s)

Current Plan for 2012

Proposed Plan for 4/1/2013

Eligibility

Eligibility for coverage begins on the first day of the month after you complete a Term of Employment of one month with a Participating Company.

Company subsidy begins on the first day of the month in which 6 months of net credited service (NCS) is attained (also referred to as term of employment (TOE)).

Contribution

Full Time

$0

Ind. $2.50

Ind. + 1 $5.00

Family $7.00

In Puerto Rico, contributions are after-tax only.

Exam Copay and/or

Allowance

Per 12 months-Employee Per 24 months-Dependent Per 12 months

Network: Non-Network

$15/0% $28 allowance

Per 12 months (Employee and Dependent) Network: $0/0% Non Network: $28

Frame Copay and/or

Allowance

Per 24 months

Network: Non Network:

$120 allowance $30 allowance

1 pair per 12 months

Network: $130 Non Network: $30

Lenses Copay and/or

Allowance

Per 12 months-Employee

Per 24 months-Dependent

Network: Non Network:

$0/0% $30-$80 allowance

1 set per 12 months (Employee and Dependent) Network: $0/0%

Covers std. Plastic lenses: Single,

Bi-focal, Tri-focal, Lenticular, Progressive + Polycarbonate at 100%

Non Network: $30-$80

Contact Lenses Copay and/or Allowance

Per 12 months-Employee

Per 24 months-Dependent

Network: $75 allowance

Medically necessary $15/100% Non Network: $75 allowance

Per 12 months (Employee and Dependent)

Network: $150 allowance

Non Network: $150 allowance

Second Pair Benefit

Per 24 months

Lenses:

Network: $30/0% Non Network: $30-$80

Frames:

Network: $120 Non Network: $30

Contact Lenses:

Network: $30 Copay $75 allowance

Medically necessary $0/0% Non Network: $75

Per 24 months

Network: Allows for a 2nd pair of glasses or contact lenses allowance after the first pair benefit/allowance is utilized, per 24 months.

Non Network: None.

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