(D) AT&T PERFORMANCE AWARD FOR OCCUPATIONAL EMPLOYEES
(FORMERLY E)
AT&T Performance Award for Occupational Employees
AT&T, the Communications Workers of America, and the International Brotherhood
of Electrical Workers agree to an annual bonus plan linked to the overall financial
success of AT&T. This plan shall be called the AT&T Performance Award for
Occupational Employees (APA).
Plan Purpose
The AT&T Performance Award for Occupational Employees (the APA “Plan”) is a
profit sharing like plan designed to recognize and reward eligible employees by
having them share in an annual bonus plan that is linked to the financial measures of
AT&T Inc.
APA Plan Year
The APA Plan Year for measuring financial results and determining employee
eligibility to share in those results shall be the calendar year. The first such year will
commence January 1, 2006 and will include financial performance through
December 31, 2006.
For the duration of this Agreement, the standard APA Plan Award amount of $750.00
will be used to calculate the award payment.
Eligibility
To be eligible to participate in APA, an occupational employee must meet both of the
following criteria:
1. Have a minimum of eighty-eight (88) calendar days of active employment (either
management or occupational) with the Company as a U.S. based employee
during the APA Plan Year and,
2. Be a regular full-time or regular part-time AT&T employee on December 31 of the
applicable APA Plan year (except as noted in subsequent paragraphs).
Leaves of Absence
Local Leave of Absence – Within any APA Plan Year a service credit period of up to
thirty (30) days shall be added to offset a Local Leave of Absence to be included in
the 88 calendar days of active employment.
Short Term Disability Leave of more than one (1) month – An absence period
attributed to Sickness or Accident Disability or the disability portion of the Anticipated
Disability Leave of Absence shall be included in calculating the award. It shall also
be included in determining whether the employee has met the eighty-eight (88) day
requirement set forth above. An employee shall not lose eligibility if he/she is on
such an absence on December 31 of the APA Plan Year.
Unpaid Leave of Absence (personal leave, the non-disability portion of an anticipated
disability leave, union leave, care of newborn/newly adopted child, family care leave,
unpaid military leave) – An employee’s time on an unpaid leave of absence granted
by the Company of more than thirty days shall not be counted toward the eighty-eight
(88) day requirement set forth above nor shall such time be counted in determining
the amount of the award. An employee shall not lose eligibility if he/she is on such a
leave on December 31 of the applicable APA Plan Year.
Paid Military Leave – Time on paid military leave shall be counted toward the eightyeight
(88) day requirement above and shall be counted in calculating the award. An
employee shall not lose eligibility if he/she is on such leave on December 31 of the
APA Plan Year.
Separations From AT&T
An employee separated from the active payroll due to force reduction, retirement on
a service or disability pension, expiration of benefits or death during the Plan year
shall not lose eligibility due to such separation. Term employees who are work
completed and who otherwise meet the eligibility criteria shall not lose their eligibility.
The award for an employee under these circumstances shall be prorated based on
the number of calendar days on the active payroll or otherwise included in the
calculation during the APA Plan Year.
An employee who resigns prior to December 31 or last day of the APA Plan Year or
is dismissed prior to the payout date for any reason shall not be eligible for an award.
An employee who is on Long Term Disability Leave of Absence on December 31 of
an APA Plan Year shall not be eligible for an award.
Promotions or Temporary Upgrades to Management and Transfers
An employee permanently or temporarily promoted to management or transferred to
a former Bell System company under the Post Divestiture Shared Services Force
Transfer Agreement, if otherwise eligible, shall receive a prorated award for time
spent as an occupational employee of AT&T under this Plan.
Payment Criteria - Pro-Rated (Time Worked)
The award to an eligible full-time occupational employee shall be pro-rated based on
the number of calendar days on the active payroll as an occupational employee
during the APA Plan Year.
The award to an eligible part-time occupational employee shall be pro-rated based
on both the part-time employee's part-time Equivalent Work Week as of December
31 of the applicable APA Plan Year and the number of calendar days on the active
payroll as an occupational employee during the APA Plan Year.
The award to an eligible occupational employee receiving the Extended
Compensation Option of the AT&T Option Program (ATTOP) shall be pro-rated
based on the number of calendar days on the active payroll as an occupational
employee during the APA Plan Year prior to their election to participate in ECO and,
in addition, for the number of days as an ECO participant the Award amount will be
15% of the Award received by an eligible full-time employee.
APA Plan Payment Calculations
For the duration of this Agreement, an Occupational Standard Award amount of
$750.00 will be used to calculate the award payment.
AT&T Inc. financial measures, associated targets, and bonus funding used for the
AT&T Management Bonus Plan will also be used for the Occupational APA Plan.
Award Payment Amounts
• Payout at or below Threshold Performance Level = $425
• Payout at Target Performance Level = 100% of Occupational Standard Award
($750)
• Payout above Target Performance Levels = Capped at 200%
Award Payments
Award payments will be made by separate check to be delivered by the end of the
first quarter of the year following the applicable APA Plan Year. Such payments
shall be subject to federal, state, and local tax and FICA withholding.
Where appropriate, award payments shall be used in calculating an employee’s
wage rate for determining the amount of union dues deductions.
Application of the Awards to Payment for Overtime Worked and Other Benefits,
Allowances or Allotments:
• For the twelve (12) month period following each Award, the Award will enter into
computations of pay for overtime worked. Such computation shall be based on
the amount of the Award, divided by the number of weeks during said twelve
(12) months. The result of such computation shall be entered into the standard
Overtime Adjustment formula during each payroll period.
For the twelve (12) month period following each Award, the Award shall be included
in the calculation of the following benefit payments or allotments:
− Group Life Insurance (Basic, Supplementary, Accidental Death &
Dismemberment and Accidental Loss)
− Death Benefits
− Employee Stock Purchase Plan (ESPP)
The Award shall be subject to LTSSP Allotment Deductions.
The Award will not be part of the employee’s Standard Rate of pay or basic wages
for any other purpose nor shall they enter into the computation of any payments
made under any other pension or benefits plan, fringe benefit, allowance or
differential.
Employee Information
The Company will provide periodic information to employees regarding its financial
performance during each APA Plan Year.
The Company may extend coverage of this APA Plan to other AT&T units and to
occupational employees other than those represented by the Unions.
Dispute Resolution
Company determination under this plan shall be final and binding. The Union may
present grievances relating to matters covered by the APA Plan, but neither the APA
Plan nor its administration shall be subject to arbitration.
Extraordinary Financial Occurrences
The Company reserves the right to adjust the level of payment so as to insulate it
from the effects of unanticipated, extraordinary major fluctuations in business
transactions or conditions. The Company shall provide the Union with advance
notice of any such adjustments and shall discuss the matter with the Union upon
request.