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Your Money Matters at AT&T

October 15, 2012

Marty Webb – Vice President – Benefits

2

Agenda

You Matter

AT&T Retirement Benefits

Savings Plan Design and Features

Overview of Your Money Matters

Results and Metrics

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Components of You Matter

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AT&T Retirement Benefits by the Numbers

• $30+ Billion in Assets

• 340,000+ Participants with a Balance• 245,000 Employees Eligible to

Contribute• $1.2 Billion in Employee

Contributions in 2011• $627 Million in Company Match

during the same year

• $92,000 Average Participant Balance

• Virtually all US based AT&T employees participate in a Pension Plan

• $56 Billion in Liabilities as of 12/31/2011

• 617,000 Total Pension Plan Participants (including retirees)

• 238,000 Active Pension Plan Participants

• $5 Billion in Pension Benefits Paid in 2011

Savings Pension

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Savings Plan Design & Features

Plan Features Fund Lineup Overview

Auto Enrollment

Auto Escalation

Roth 401(k) Features

6% of Pay is Matched at 80%

Catch Up Contributions

Auto Rebalance

Twelve Age Based Funds (default investment option)

Four Index Funds

Four Custom Funds (including Stable Value)

AT&T Shares Fund

Self-Directed Brokerage Window

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Your Money Matters

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Your Money Matters: Program Launch

Objectives• Improve Employee Education• Increase Employee Engagement

• Increase Participation• Maximize Match

Communication Vehicles

Traditional Media

• Paper mailings• Company website• Emails• Posters & digital signage

Social Media

• Social networking community

• Blogs

Videos• Employee vignettes• Man on the Street Workshops

• Savings basics• Asset allocation• Investing your next dollar

Targeted Messages

• New employee• Participation• Maximize match

• Diversification• Catch-up• Impact of loans

• Retirement• Others

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Social Media (Intranet)• Over 10,000 community members• Ongoing interaction on variety of financial topics

Ben is GREAT

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Video

Three Employees

Three Stages of Life

One Common Goal

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2011 Campaign

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2012 Campaign

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Holistic Experience: Expand and Enhance Your Money Matters in 2012

Effectively growing the campaign means maximizing four key areas:

• Tools: technology used by employees to make and model actions

• Design: implementing strategic plan changes or adding new features to create best-in-class benefits

• Education: creating and delivering information for participants

• Delivery Channels: maximizing the existing channels and developing new mediums

Tools Design

Education Delivery Channels

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11/01/2010 09/30/2012

77%

83%

Man-agement

11/01/2010 09/30/2012

46%

58%

Bargained

11/01/2010 09/30/2012

88%

90%

Management

11/01/2010 09/30/2012

79%

83%

Bargained

11/01/2010 09/30/2012

82%

86%

Total Participation

11/01/2010 09/30/2012

59%

69%

Total

Your Money Matters Results

Get In! Savings Plan Participation Rates

Max Out! % of Participants Maximizing Company Match