AT&T Concerning a Savings Plan Change

Our office was notified by AT&T concerning a savings plan change that impacts certain participants in the following plans:

· AT&T Retirement Savings Plan (ARSP)

· AT&T Savings and Security Plan (ASSP)

· AT&T Puerto Rico Retirement Savings Plan (ARSP-PR)

Employee contributions to these savings plans are immediately vested; however, company match is subject to a vesting schedule. Generally, plan participants are fully vested after three years of service.

Within the ARSP, ASSP, and ARSP-PR, plan participants must be vested in their company match before they can exchange out of the AT&T Shares Fund. The savings plans are being amended to remove this restriction on diversification.

Effective January 1, 2015, unvested participants (generally those with less than 3 years of service) in the ARSP, ASSP and ARSP-PR will be able to diversify up to 100% of their company match out of the AT&T Shares Fund and into any other available investment option under the applicable plan.

This is applicable to the CWA Operations Agreement, CWA Puerto Rico as well as the National Internet Contract.  Participants will receive communications about this plan change in the November/December 2014 timeframe.