Retiree Benefits Update

Benefit AnnouncementThe company has started migrating retirees that are Medicare eligible as a result
of disability and not yet 65 to the Exchange this year. They will receive the same
HRA treatment as age eligible retirees.


The company is also changing the Grandfathered retirees-those who retired
before a particular cutoff date for application of the retiree health care cap. The
grandfathering date for the Midwest is 1/1/93. This is the first time this Company
has made adjustments to the plan for these retirees. The retirees in the
“grandfathered” status will move into a Medicare Advantage PPO plan
administered by United Healthcare. Non-medicare retirees and dependents will
be moved into an at&t Advantage PPO plan. Retirees in this group who are
enrolled in HMO’s may continue in the HMO or choose to move into one of the
Advantage plans. Communications for this group of retirees should have already
gone out.

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