The Cingular 401(k) Savings Plan
You’re eligible to contribute to the 401(k) Savings Plan as soon as you become a Cingular employee. Deductions will begin by the second pay period.

The plan features a 90% match on the first 6% of pay you contribute to your account on a before-tax or after-tax basis. For example, if you make $25,000 a year and contribute 6%, or $1,500, Cingular will add $1,350 ($1,500 x 90%) in matching funds to your account.

Before-tax contributions are deducted from your paycheck before taxes are withheld—reducing your tax bill and stretching your savings dollars.

You can make before-tax contributions from 2% to 19% of your pay and after-tax contributions of 2% to 19% of your pay. (Because the IRS limits the total contribution that can be made to your account annually, some employees may be limited to a lower contribution percentage. The maximum contribution percentage is 19% for any combination of before-tax or after-tax employee contributions.)

Your contributions are always 100% yours, the minute you contribute them.

Because you joined Cingular as a result of the joint venture, you’re automatically 100% vested in your Cingular matching contributions. In the future, new Cingular employees will “vest in” or “own” the Cingular matching contribution when they’ve been employed with Cingular for two years.

While your long-term goal should be building your financial future, the loan feature can help you out if you’re saving for a down payment on a house, car, or other big-ticket item.

• Any outstanding loans from your parent company's 401(k) Savings Plan will transfer to the Cingular 401(k) Savings Plan. After payments are completed on these loans, Cingular’s 401(k) Savings Plan allows you one loan at a time.
• Under certain situations, you may be eligible for a hardship withdrawal.
• You can also withdraw money from your after-tax contributions.

You’ll have a broad array of investment options to help your savings grow. Your options will be similar to the investment options offered under your parent company's 401(k) plans.

Your Cingular 401(k) Savings Plan balance is portable. If you leave Cingular, you can take it with you.

back to top

The Cingular Pension Plan
The Cingular Pension Plan is a cash balance plan designed to provide benefits that grow based on company contributions over the course of your Cingular career.

Because you joined Cingular as a result of the joint venture, you’re automatically enrolled and completely vested in the Cingular Pension Plan. In the future, new employees will be enrolled in the plan after one year of service and vested after five years.

You pay no contribution. Cingular credits your Pension Plan account annually with an amount equal to 5% of your eligible pay (base salary, bonus, shift differentials, team awards, and/or commissions) plus interest on your account balance.

Your vested balance goes with you if you leave Cingular. You don’t have to wait until you reach retirement age to receive a benefit, and you can have your benefit paid to you as a single, lump-sum payment or as monthly payments. (Be aware that there are tax consequences if you leave Cingular before age 59-1/2 and you fail to reinvest your balance in a qualified plan).

back to top

Financial Education
We’ll provide educational opportunities to help you understand your future Cingular 401(k) investment fund options and to assist you with understanding the transition issues associated with your parent company's plans.

• You’ll have access to industry-leading investment education, savings planning, and account management tools from a leader in financial education, Fidelity Investments.
• You’ll be able to take advantage of Fidelity’s industry-leading online investment education and modeling tools.
• You can attend one of the many financial education classes offered throughout the year.
• You'll receive a monthly financial education newsletter called Stages.

back to top

Transitioning to the Edge
Concerned about your current pension and 401(k) account balances? You're in good shape. You’re automatically vested in your parent company 401(k) plan and pension plan (if applicable).

Your Cingular 401(k) Savings Plan
As of the date you transition to the new Cingular benefits, you're vested in your parent company 401(k) savings plan and in the new Cingular 401(k) Savings Plan.

Due to the 100+% match level experienced by BellSouth employees during the past four years, Cingular will provide a special two-year transition match level of 100% for all BellSouth Cellular Services LLC employees. After this transition period ends on December 31, 2003, the match level will be reduced to 90%.

Please Note: Cingular Interactive employees formerly (Bellsouth Wireless Data employees) are not included in this special two-year transition.

If you are a participant in your company’s 401(k) savings plan the day before the transition to Cingular, your enrollment in the new Cingular plan will be automatic. Your contribution percentage and investment directions from your previous 401(k) savings plan will be moved into the new Cingular 401(k) Savings Plan.

Your 401(k) balance from your parent company's plan will be transferred to a Cingular 401(k) account and your money will be reinvested in Cingular 401(k) Plan investment options. We’ll review your current investment directions and move your investment accounts to similar Cingular investment funds. This process is called fund mapping. Much more information about our new 401(k) investment options and fund mapping will be provided in a few months.

If you’ve invested in BellSouth or SBC stock through your parent company 401(k) plans, your investments will be frozen and automatically transferred to the BellSouth Stock “frozen” fund or the SBC Stock “frozen” fund in your Cingular 401(k) Savings Plan.

• You won't be able to make additional contributions into these stock funds but you can redirect the value of the stock to other funds.
• You'll be able to direct the vote of your shares and dividends will be reinvested in additional shares.

You’ll be able to go online or call a 1-800 number to reallocate your fund balances or change your contribution percentage or fund choices anytime you want.

Any outstanding loans you have will transfer into the Cingular 401(k) Savings Plan. While the amount of your loan payment amount may change slightly due to reamortization of the loan, the total repayment amount will not change.

Your Cingular Pension Plan
As of the date you transition to the new Cingular benefits, you’re automatically vested in your parent company pension plan account regardless of your service. Future contributions made by Cingular in your Pension Plan account will also be vested, if applicable.

The money in your current pension or cash balance plan account will automatically transfer to your new Cingular Pension Plan account.

Cingular will review your projected pension benefit under your parent company’s pension plan and provide transition contributions to provide a substantially equal benefit. If applicable, this provides equity between your parent company benefits and the new Cingular Pension Plan.

Transfers of pension account balances may be delayed for certain companies associated with the joint venture. The company-specific transition letter you'll receive in late May at home will go into more detail about any delays affecting you.

Please Note: Houston Cellular, Cingular Interactive, Puerto Rico, and Hawaii-based Ameritech employees are not eligible for pension transition contributions.

back to top