1. How well funded is AT&T's pension plan? Has this amount changed year over year? What has driven these changes (in terms of both plan assets and liabilities)?
2. What amounts reflected on AT&T's balance sheet are related to the pension plan?

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NOTE 11. PENSION AND POSTRETIREMENT BENEFITS Pension Benefits Substantially all of our U.S. employees are covered by one of our noncontributory pension and death benefit plans. Many of our management employees participate in pension plans that have a traditional pension formula (ie, a stated percentage of employees adjusted career income) and a frozen cash balance or defined lump sum formula. In 2005, the management pension plan for those employees was amended to freeze benefit accruals previously earned under a cash balance formula. Each employee's existing cash balance continues to earn interest at a variable annual rate. After this change, those management employees, at retirement, may elect to receive the portion of their pension benefit derived under the cash balance or defined lump sum as a lump sum or an annuity. The remaining pension benefit, if any, will be paid as an annuity if its value exceeds a stated monthly amount. Management employees of former ATTC, BellSouth and AT&T Mobility participate in cash balance pension plans. Nonmanagement employees' pension benefits are generally calculated using one of two formulas: benefits are based on a flat dollar amount per year according to job classification or are calculated under a cash balance plan that is based on an initial cash balance amount and a negotiated annual pension band and interest credits. Most nonmanagement employees can elect to receive their pension benefits in either a lump sum payment or an annuity. At November 1, 2008, BellSouth pension plans and U.S. Domestic Participant T bargained were merged in the AT&T Pension Benefit Plan. At December 31, 2007, defined pension plans formerly sponsored by Ameritech Publishing Ventures and AT&T Mobility were merged in the AT&T Pension Benefit Plan. At December 31, 2006, ertain defined pension plans formerly sponsored by ATTC and AT&T Mobility were also merged into the AT&T Pension Benefit Plan. Postretirement Benefits We provide a variety of medical, dental and life insurance benefits to certain retired employees under various plans and accrue actuarially-determined postretirement benefit costs as active employees earn these benefits. Obligations and Funded Status For defined benefit pension plans, the benefit obligation is the "projected benefit obligation" the actuarial present value, as of our December 31 measurement date, of all benefits attributed by the pension benefit formula to employee service rendered to that date. The amount of benefit to be paid depends on a number of future events incorporated into the pension benefit formula, including estimates of the average life of employees/survivors and average years of service rendered. It is measured based on assumptions concerning future interest rates and future employee compensation levels. For postretirement benefit plans, the benefit obligation is the "accumulated postretirement benefit obligation," the actuarial present value as of a date of all future benefits attributed under the terms of the postretirement benefit plan to employee service rendered to that date. The following table presents this reconciliation and shows the change in the projected benefit obligation for the years ended December 31: Benefit obligation at beginning of year Service cost-benefits earned during the period Interest cost on projected benefit obligation Amendments Actuarial loss (gain) Special termination benefits Settlements Benefits paid Other $53.522 Postretirement Benefits 2007 $44,137 511 2,588 Pension Benef 2000 2007 2000 1173 3,319 (15) (1,450) 70 $55,949 1,257 3,220 $40.385 429 2,550 246 (2,044) (4) (5,795) (2) 56 (15) (5,312) 165 $53,522 (3,406) 5 (4,752) 7 (2,548) 120 $37,531 (2,316) 210 $40,385 Benefit obligation at end of year $50,822 NOTE 11. PENSION AND POSTRETIREMENT BENEFITS Pension Benefits Substantially all of our U.S. employees are covered by one of our noncontributory pension and death benefit plans. Many of our management employees participate in pension plans that have a traditional pension formula (ie, a stated percentage of employees adjusted career income) and a frozen cash balance or defined lump sum formula. In 2005, the management pension plan for those employees was amended to freeze benefit accruals previously earned under a cash balance formula. Each employee's existing cash balance continues to earn interest at a variable annual rate. After this change, those management employees, at retirement, may elect to receive the portion of their pension benefit derived under the cash balance or defined lump sum as a lump sum or an annuity. The remaining pension benefit, if any, will be paid as an annuity if its value exceeds a stated monthly amount. Management employees of former ATTC, BellSouth and AT&T Mobility participate in cash balance pension plans. Nonmanagement employees' pension benefits are generally calculated using one of two formulas: benefits are based on a flat dollar amount per year according to job classification or are calculated under a cash balance plan that is based on an initial cash balance amount and a negotiated annual pension band and interest credits. Most nonmanagement employees can elect to receive their pension benefits in either a lump sum payment or an annuity. At November 1, 2008, BellSouth pension plans and U.S. Domestic Participant T bargained were merged in the AT&T Pension Benefit Plan. At December 31, 2007, defined pension plans formerly sponsored by Ameritech Publishing Ventures and AT&T Mobility were merged in the AT&T Pension Benefit Plan. At December 31, 2006, ertain defined pension plans formerly sponsored by ATTC and AT&T Mobility were also merged into the AT&T Pension Benefit Plan. Postretirement Benefits We provide a variety of medical, dental and life insurance benefits to certain retired employees under various plans and accrue actuarially-determined postretirement benefit costs as active employees earn these benefits. Obligations and Funded Status For defined benefit pension plans, the benefit obligation is the "projected benefit obligation" the actuarial present value, as of our December 31 measurement date, of all benefits attributed by the pension benefit formula to employee service rendered to that date. The amount of benefit to be paid depends on a number of future events incorporated into the pension benefit formula, including estimates of the average life of employees/survivors and average years of service rendered. It is measured based on assumptions concerning future interest rates and future employee compensation levels. For postretirement benefit plans, the benefit obligation is the "accumulated postretirement benefit obligation," the actuarial present value as of a date of all future benefits attributed under the terms of the postretirement benefit plan to employee service rendered to that date. The following table presents this reconciliation and shows the change in the projected benefit obligation for the years ended December 31: Benefit obligation at beginning of year Service cost-benefits earned during the period Interest cost on projected benefit obligation Amendments Actuarial loss (gain) Special termination benefits Settlements Benefits paid Other $53.522 Postretirement Benefits 2007 $44,137 511 2,588 Pension Benef 2000 2007 2000 1173 3,319 (15) (1,450) 70 $55,949 1,257 3,220 $40.385 429 2,550 246 (2,044) (4) (5,795) (2) 56 (15) (5,312) 165 $53,522 (3,406) 5 (4,752) 7 (2,548) 120 $37,531 (2,316) 210 $40,385 Benefit obligation at end of year $50,822