Tobacco Surcharge

Tobacco User Status Attestation

During Annual Enrollment everyone must answer the attestation question to confirm or deny Tobacco User status for yourself and your spouse/partner. If you do not, then your status will default to “Yes” and both you and your spouse/partner will incur a $75 per person monthly Tobacco Surcharge. The Tobacco Surcharge can be avoided by completing the Tobacco Cessation Program.

The administrator for the Tobacco Cessation Program is changing from Pelago to Lyra Health effective January 1^st, 2027. Pelago will continue to administer the program through the end of the year 2026.

Employees who complete the Tobacco Cessation Program through Pelago in 2026 will receive a full refund of tobacco surcharges for the entire plan year retroactively to January 1^st, 2026, as well as all future surcharges for the year being waived.

After January 1^st, 2027, the program must be completed through Lyra Health’s Nicotine Quitline by calling (844)901-1062 and telling the representative you want to participate in the AT&T Lyra Nicotine Quitline for tobacco-surcharge completion.

The details for each Plan Year are as follows:

2026 Plan Year: Remove and/or refund the tobacco surcharge for the entire 2026 plan year for anyone who completes the cessation program on or before 12/31/2026.

2027 Plan Year: Remove and/or refund the tobacco surcharge for the entire 2027 plan year for anyone who completes the cessation program on/after 10/1/2026 and on/before 12/31/2027.

2028 Plan Year and beyond will follow the 2027 Plan Year schedule, unless changes are made by the company in the future.

Beneficiary Designations

The beneficiary hierarchy, for employees who do not have a beneficiary election on file with Fidelity, is changing. If you don’t have beneficiary elections it will go to a spouse/partner and then to your estate. Also, if you submitted paper forms, they are no longer valid. You must go to Fidelity’s Online Beneficiary System and submit new Beneficiary Designation Forms.

Benefits Cost Sharing

The employee cost share for Monthly Contributions, Deductibles and Annual Out-of-Pocket Maximums will change for all benefits according to the language in Article 16 of our Collective Bargaining Agreement (contract).

HSA and FSA Contributions

The IRS limits for HSA contributions are changing for 2027. The new limits are $4,500 for an Individual and $9,000 for a Family.

Healthcare FSA contribution limits are currently $3,400. During enrolment you will have the option to opt-in to automatically increase your contribution if the IRS changes this limit for 2027.

Dependent Care FSA contribution limits for 2027 are $7,500.

Note:

We encourage EVERYONE to go to the enrollment website www.att.com/benefitscenter or call 877-722-0020 to complete enrollment, even if you are not making any changes, you must attest to your Tobacco User status to avoid paying additional charges.