Medicare Part B
Reimbursement/Retroactive Payments

Medicare Part B premium reimbursement is not automatic or retroactive. If you believe you were given misinformation you do have the right to file an appeal.

In the Medical Expense Plan SPD it states, "IMPORTANT: Medicare Part B premium reimbursement is not automatic or retroactive, so you must be sure to contact the Eligibility and Enrollment Vendor to enroll in AT&T's Medicare Part B premium reimbursement program."

If you choose to file an appeal, you may do so by writing to:

AT&T Health Benefit Enrollment Center
Benefit Determination Review Team
P.O. Box 1407
Lincolnshire, IL 60069-1407

When you retire on a service pension or a disability pension, your basic life insurance coverage is automatically continued. Your supplemental life insurance coverage also continues if you pay the required premiums.

The amount of your basic life insurance coverage before age 66 is equal to the basic life insurance coverage you had when you retired. Your coverage is reduced starting at age 66.

The amount of your basic coverage at retirement is determined by your basic annual pay, which includes: Your base pay, differentials paid for night hours, differentials paid for temporary work in a higher classification, lump-sum merit wage payments, incentive compensation (Directory or Marketing Management Employee), area differentials, team awards, commissions and bonuses and residuals which are identified as a permanent part of your compensation.

The basic life benefit will be paid to your beneficiary whether your death is caused by disease, illness or accident.

Supplemental life insurance can be continued after retirement if you have paid the full premium for the coverage.

Supplemental coverage ends on the last day of the month in which you stop making required contributions or otherwise cancel coverage or reach age 65.

If you retire on a service or disability pension your basic life insurance coverage continues at no cost to you. When you reach age 66, your basic life coverage will begin to be reduced according to the following table:

If you are age:	Amount of Basic Life Insurance in Effect will be:
66	90%
67	80%
68	70%
69	60%
70 and older	50%

As a retired employee, this percentage applies to the basic life insurance coverage in effect on the day you retire, if you retire on or before your 65th birthday; or to the basic life insurance coverage in effect on your 65th birthday, if you retire after age 65.

How are your life insurance benefits paid? Unless you elect to have payment made in a lump sum or in installments, the method of payment when you die will be as follows:

If you have one beneficiary·30% of all benefits (basic life, accidental death and supplemental life, if any) will be paid in a lump sum. 70% will be paid in twelve monthly installments with minimum interest.

If you have more than one beneficiary, however, or benefits go to your estate or a trust, payment will be made in a lump sum.

If you do not elect a method of payment, however, the insurance company may ask the beneficiary to choose a method of payment.

You may change your beneficiary designation at any time by completing a new beneficiary designation form. You can obtain this form (Form #: SN1020-SBC) by contacting
SBC BENEFICIARY FORMS, P. O. BOX 420, LITTLE FALLS, NJ 07424, OR BY CONTACTING: THE SBC PENSION PLAN SERVICE CENTER AT 1-800-557-3640.

If you have not reviewed your beneficiary form on file with SBC for some time, you may wish to do this now. The consequences brought about by a divorce or a spouse's death and a failure to submit an updated beneficiary form could be catastrophic.

In order for your beneficiary designation form to be valid, your form must be received and approved prior to your death. If your form is received after your death, your beneficiary designation form is not valid and your current beneficiary designation form on file is the official document that will be used to process your death benefits.

Other Death Benefits

Your qualified beneficiary may be eligible for a pensioner death benefit when you die and:

You are eligible to retire on a service pension or you are retired on a service pension.

The amount of the pensioner death benefit is based on your annual pay at the time you retired.

Qualified Beneficiary

A qualified beneficiary for the Pensioner Death Benefit is defined under the terms of the pension plans as:

Your spouse at the time of your death, if living with you at the time of your death. Your unmarried dependent children under the age of 23 years (or over that age if physically or mentally incapable of self support). Your dependent parent (s) who live in the same household or who live in a separate household which is provided for by you.

(To add levity to this somber summary)

An otherwise qualified beneficiary convicted of intentionally killing you, or of involuntary manslaughter against you resulting from battery or assault, will be ineligible to receive any death benefit.

It has been suggested that a current beneficiary form be filed with your personal records, your Living Trust or a member of your family.

Qualified Death Benefit Beneficiaries (A corporate benefit subject to the following rules)

Recently a number of our members have contacted our office to secure information regarding their Death Benefit Plan. As a result of your inquiries, we obtained the following information, which should be helpful.

Sickness and Death Benefit paid out in the order below.

The beneficiary is not elected by the employee or retiree, but is "mandatory" and is determined by the SBC Survivor Benefits Service Center (SBSC) according to the following guidelines:

Mandatory Beneficiary

In reference to all other applicable benefits such as; Final unpaid compensation, SOPs, life insurance, pension, and savings; can revise beneficiary form to include whomever retiree wish to designate as beneficiary. (The participant can elect anyone they wish for the above benefits as beneficiary.) This election is made on the SN10-20 Beneficiary Designation Form. In this case, if a participant designates their spouse as the primary beneficiary, the children or other desired beneficiaries can be named the contingent beneficiary. Therefore, if the spouse passes with the participant the benefit will go to the children or whoever is listed as the contingent beneficiary

(If you have not updated your beneficiary statement, contact the SBC Pension and Savings Plan Service Center, 1-800-557-3640.)
PTG participants have the option to receive the Death Benefit as: a lump sum or monthly installments.

The aforementioned issues involving the Securities and Exchange Commission, the Pension Benefit Guarantee Corporation (ERISA) and the AT&T Director of Corporate Communications are ongoing and remain unresolved at this writing

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Updated summary plan description (SPD)

An updated summary plan description (SPD) for the AT&T Rules for Employee Beneficiary Designations (formerly known as the SBC Rules for Employee Beneficiary Designations) is now available in the Benefits section of HROneStop and access.att.com. This SPD replaces your existing SPD and the AT&T Rules for Employee Beneficiary Designations plan document.

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July 1, 2004 Newsletter: "Ladd, Helbling " information

SBC Pension and Savings Plan Service Center

To access the SBC Pension and Savings Plan Service Center you may visit the website
https://www2.benefitsweb.com/sbc.html or
call 1-800-557-3640 (domestic) or
+1-201-363-2953 (international)

Service Associates are available to assist you Monday through Friday, from 7:00 A.M. to 7:00 P.M. Central Time.