Pre-Merger AT&T Annual Enrollment 2007

We have just received the information below from AT&T.

In Unity,
Jerry Klimm

**********************************************

September 28, 2006

Mr. R. V. Maly, Jr., Vice President, CWA
Mr. J. U. Klimm, Assistant to Vice President, CWA
Ms. M. J. Pultar, Director of Telecommunications, IBEW
Mr. P. A. Pusateri, Chairman, System Council T-3, IBEW

Re: Pre-Merger AT&T Annual Enrollment 2007 Facts

This is to inform you that the 2007 Pre-Merger AT&T Benefit Enrollment for bargained employees is from October 5th through October 25th. Attached for your information is a quick reference fact sheet which will provide employees all of the details regarding the benefit enrollment process.

I would encourage you to share this information with employees through your websites.

Regards,

Lori J. Smith

Pre-Merger AT&T Annual Enrollment 2007 Facts

ANNUAL ENROLLMENT 2007 FOR PRE-MERGER AT&T BARGAINED EMPLOYEES
The annual enrollment period for pre-merger AT&T bargained employees is from Oct. 5 through Oct. 25, 2006, at 7 p.m. Central time.

GENERAL FACTS

• More than 880,000 employees, retirees, inactive employees and their respective dependents are covered by benefits plans offered by AT&T.
• Approximately 106,000 bargained employees will have the opportunity to participate in Annual Enrollment 2007.
• Bargained employees will receive printed Annual Enrollment 2007 information at their home address before their enrollment period begins. They will also have access to online versions of these same materials.
• Employees will learn more about annual enrollment through:
  - Their annual enrollment information described above.
  - A special Fall 2006 Benefits Update that contains information about changes for 2007.
• If employees need to enroll or make changes during Annual Enrollment 2007, there are two convenient methods for enrolling. They may enroll:
  - Online at http://resources.hewitt.com/att, which is the AT&T Health Benefits Enrollment Center Web site.
  - By speaking to a service associate at the AT&T Health Benefits Enrollment Center at 1-877-722-0020 (domestic) or +1-847-883-0866 (international). Service associates are available Monday through Friday from 7 a.m. to 7 p.m. Central time.

TIP: To save time, employees should try calling during the middle of the week. Mondays and the last few days of the enrollment period are always the busiest. Employees may have to wait longer in order to complete their enrollment on these days.

NOTE: The Enrollment Center can accept employee calls beginning Oct. 5, 2006. If employees have questions prior to that, please refer them to their SPDs and SMMs.

EMPLOYEES WILL RECEIVE ANNUAL ENROLLMENT 2007 INFORMATION AS NOTED BELOW:

• Employees should receive annual enrollment information at their home address by Oct. 4, 2006. Employees who have not received this information by this date should call the AT&T Health Benefits Enrollment Center at 1-877-722-0020 (domestic) or +1-847-883-0866 (international) and speak to a service associate.
• Annual Enrollment 2007 information will contain:
  - An Enrollment Worksheet, a medical plan summary comparison chart, a dental plan summary comparison chart (if applicable) and dependent information.
  IMPORTANT: The medical plan and dental plan summary comparison charts are high-level summaries of the benefits available under the company-offered medical and dental plans. These charts are not summary plan descriptions (SPDs). For specific details, you should refer to your SPDs, summaries of material modifications, applicable collective bargaining agreements and the official plan documents. In all cases, the official plan documents are the final authority on the benefits available under these plans.
  - A newsletter that provides step-by-step instructions on how to enroll.

NEW THIS YEAR: The employee will need an AT&T Health Benefits Enrollment Center User ID and password in order to make annual enrollment elections online. To establish a User ID and password, the employee should:

• Visit the AT&T Health Benefits Enrollment Center Web site at http://resources.hewitt.com/att.
• Click on Log On.
• Click on Register as a New User.
• Follow the prompts to provide personal information and answer security questions to create a User ID and password.
  
  If the employee does not have access to the Internet or prefers to enroll by speaking to a service associate, he or she may call the AT&T Health Benefits Enrollment Center at 1-877-722-0020 (domestic) or +1-847-883-0866 (international). The employee will need to enter his or her personal data and password as prompted and then follow the remaining prompts. If the employee does not know his or her password, he or she should listen for the options to "reset password" or for "password assistance." Or, if the employee does not press any key on the telephone and remains on the line, he or she will be transferred to a service associate, who will verify the employee's identity by requesting personal data.

QUESTIONS THAT EMPLOYEES SHOULD CONSIDER BEFORE ANNUAL ENROLLMENT 2007

• Do I need to change options listed on the Your Assigned Coverage page of my Enrollment Worksheet? Review this information carefully. Remember, if the employee makes no changes during annual enrollment, this is the coverage that the employee and his or her listed dependents will have as of Jan. 1, 2007.
  
  NOTE: If the employee experiences a Change in Status Event (such as the birth of a child, marriage or divorce) and, as a result, makes a change to his or her benefits coverage before Jan. 1, 2007, but after the annual enrollment period is over, the confirmation statement that the employee received after annual enrollment will not reflect any changes resulting from the life event changes.
  
  If the employee experiences a Change in Status Event after making his or her annual enrollment elections, the employee needs to go to the AT&T Health Benefits Enrollment Center Web site at http://resources.hewitt.com/att and confirm his or her 2007 coverage, and review the details on any coverage/contribution amount changes that will occur effective Jan. 1, 2007. The employee may also call AT&T Health Benefits Enrollment Center at 1-877-722-0020 (domestic) or +1-847-883-0866 (international) to speak to a service associate.
  
• Do I need to correct or change my personal and/or dependent information? It is important that employees make sure that they are covering only eligible dependents. They should refer to their SPDs or call AT&T Health Benefits Enrollment Center and speak to a service associate for details on eligibility requirements.
  
  NOTE: If the employee has removed an ineligible person from coverage as part of the Dependent Eligibility Verification and Audit, that person may appear in the employee's Annual Enrollment materials because of timing. Though the name may appear, that person is not eligible for coverage. Please refer the employee to his or her Fall 2006 Benefits Update for more information regarding dependent eligibility.
  
• Does the employee want to participate in an AT&T Health Care Reimbursement Account (this is called "health care flexible spending account (FSA)" at the AT&T Health Benefit Enrollment Center) and/or an AT&T Child/Elder Care Reimbursement Account (this is called "dependent care FSA" at the AT&T Health Benefit Enrollment Center)? If so, he or she can only enroll during the annual enrollment period.
  
  NOTE: Even if the employee is participating in an FSA in 2006, he or she must enroll during the annual enrollment period to participate in 2007. Refer the employee to his or her Fall 2006 Benefits Update for details.

MORE ABOUT THE ENROLLMENT WORKSHEET OR THE AT&T HEALTH BENEFITS ENROLLMENT CENTER WEB SITE

The information provided in the Enrollment Worksheet or on the AT&T Health Benefits Enrollment Center Web site shows an employee's assigned coverage, medical plan and dental plan summary comparison charts and the other benefits options available to the employee and to his or her eligible dependents effective Jan. 1, 2007. If the employee does not enroll in or make changes to his or her benefits during the annual enrollment period, the employee and his or her eligible dependents will automatically be covered by the benefits options listed under his or her assigned coverage as of Jan. 1, 2007.

IMPORTANT: If the employee's 2006 option is no longer offered, the area titled Your Assigned Coverage on the Enrollment Worksheet or on the Enroll in Your Benefits page of the AT&T Health Benefits Enrollment Center Web site will show the medical or dental option that has been assigned for 2007. It's up to the employee to decide if these options or one of the other options for which he or she is eligible (as detailed on the medical plan summary comparison chart and dental plan summary comparison chart) is the best choice for the employee and his or her family.

• It's very important that employees carefully review ALL the information in their Enrollment Worksheet or on the AT&T Health Benefits Enrollment Center Web site.
• Contributions change from year to year. Employees should be sure to review what the contributions, if applicable, will be for 2007.
• The medical plan summary comparison chart will contain information about an available HMO's benefits; however, employees may contact the HMO for more specific details about the benefits it provides. When the employee calls the HMO service center, he or she needs to be prepared to give the service associate the reference number that is located in the Group ID field on the medical plan summary comparison chart. This will help the service associate answer your specific questions.