CWA D3 ATT SE Tentative Agreement - Additional Details

All matters addressed during 2012 negotiations have been finalized as of 7:30 p.m. on August 7, 2012. In addition to the highlights previously advertised we have reached agreement on the following issues.

Health Care

• Changes the definition of short term disability from any occupation to your own occupation
• Provided that the Company will continue to pay 100 percent of the cost of network preventive care, including items such as annual physicals and well-child care
• For employees on the payroll prior to August 18, 2012, monthly contributions will be:
  • 2013 - $38 individual, $81 family
  • 2014 - $58 individual, $121 family
  • 2015 - $79 individual, $163 family
• Annual deductibles for network providers will be $500 for individuals, $1,000 for families in all contract years.
• Coinsurance will be 10 percent for network providers
• Protect employees from catastrophic loss through reasonable out-of-pocket limits, even in cases requiring major surgeries or extended hospital stays. What this means is that AT&T pays every dime of your eligible network medical costs beyond the annual out-of-pocket limits
  • Out-of-pocket maximums for network providers will be:
    • 2013 - $1,500 individual, $3,000 family
    • 2014 - $1,700 individual, $3,400 family
    • 2015 - $2,000 individual, $4,000 family

Dental and Vision Plans

Improves dental and vision plans by eliminating dental fee schedules and covering a second pair of glasses every 24 months.

• Premiums for vision $2.50 for an individual, $5.00 for individual plus one, $7.00 for family plan (monthly contributions)
• Premiums for dental $3.00 for an individual, $9.00 for individual plus one, $16.00 for family plan (monthly contributions)

Prescription Drug Co-pays in the first two years

Allows for employees to continue paying the same copays for prescription drugs in the first two years of the agreement with a slight increase in the last year.

• Retail (up to 30-day supply)
  • 2013 & 2014 - $10 generic, $20 formulary, $40 non-formulary
  • 2015 - $10 generic , $30 formulary, $60 non-formulary

• Mail Order (up to 90-day supply)
  • 2013 & 2014 - $20 generic, $40 formulary, $80 non-formulary
  • 2015 - $20 generic, $60 formulary, $120 non-formulary

• Out-of-pocket maximums for prescription drugs will stay the same at $900 for individuals and $1,800 for families in all three years of the agreement ( no change to current plan)

The new health care plans go into effect on April 1, 2013 (1)

Other Items

• A letter recapturing full retiree benefits for those retirees who were rehired as 2009 new hires
• Renewed JOG to include post December 29, 2006 hires for a one year JOG offer
• Renewed Partnership at the same funding levels and retained the full time Union Partnership representative.
• Renewed the National Transfer Plan and included AT&T Mobility
• Renewed the card check agreement
• Renewed the Presidential council with some modifications

Your bargaining team would like to thank you for your support. We were all aware this would be the most difficult bargaining session but it is our belief we achieved a fair and equitable contact and based on todays economic climate our members will be better off at the expiration of this contract.

More information to come later today.

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(1) The healthcare changes will be effective April 1, 2013 with the plan changing in the 2nd quarter. There is a potential to be subject to 2 deductibles in 2013. Please keep this in mind if you have tentative medical procedures. You may want to either expedite those into late 2012 or postpone until the 2nd quarter of 2013.