Allstate (ALL)

PENSION BENEFITS

(1)

These amounts are estimates and do not necessarily reflect the actual amounts that will be paid to the named executives, which will only be known at the time they become eligible for payment. Accrued benefits were calculated as of October 31, 2007 and used to calculate the Present Value of Accumulated Benefits at October 31, 2007. October 31 is our pension plan measurement date used for financial statement reporting purposes.

(2)

See narrative under the heading "Extra Service and Pension Benefit Enhancements" on page 57 for the explanation of the years of credited service with respect to Mr. Liddy's pension benefit enhancement.

        The benefits and value of benefits shown in the Pension Benefits table are based on the following material factors:

Benefit Formula Under the ARP

        The ARP has two different types of benefit formulas (final average pay and cash balance) which apply to participants based on their date of hire, or individual choice made prior to the January 1, 2003 introduction of a cash balance design. Of the named executives, only Mr. Hale earns cash balance benefits.

        Benefits under the final average pay formula are earned and stated in the form of a straight life annuity payable at the normal retirement date (age 65). Participants who earn final average pay benefits may do so under one or more benefit formulas based on when they become members of the ARP and their years of service.

        Final Average Pay Formula—January 1, 1989 through December 31, 2007 Benefit Formula

        Messrs. Wilson, Liddy, Ruebenson, and Simonson, have earned ARP benefits under the post-1988 final average pay formula which is the sum of the Base Benefit and the Additional Benefit, as defined as follows:

•

Base Benefit =1.55% of the participant's average annual compensation, multiplied by his credited service after 1988 (limited to 28 years of credited service)



•

Additional Benefit =0.65% of the amount, if any, of the participant's average annual compensation that exceeds his covered compensation (the average of the maximum annual salary taxable for Social Security over the 35-year period ending the year the participant would reach Social Security

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retirement age) multiplied by his credited service after 1988 (limited to 28 years of credited service)

        Final Average Pay Formula—January 1, 1978 through December 31, 1988 Benefit Formula

        Since Mr. Ruebenson earned benefits between January 1, 1978 and December 31, 1988, one component of Mr. Ruebenson's ARP benefit will be based on the following benefit formula:

1.

Multiply years of credited service from 1978 through 1988 by 2¹/8%.



2.

Then, multiply the percentage from step (1) by



a.

Average annual compensation (five-year average) at December 31, 1988 and by



b.

Estimated Social Security at December 31, 1988.



3.

Then, subtract 2(b) from 2(a). The result is the normal retirement allowance for service from January 1, 1978 through December 31, 1988.



4.

The normal retirement allowance is indexed for final average pay. In addition, there is an adjustment of 18% of the normal retirement allowance as of December 31, 1988 to reflect a conversion to a single life annuity.

        Final Average Pay Formula—Past Service Element

        Mr. Ruebenson's ARP benefit also will include a past service element because he was an employee on December 31, 1978 with one full calendar year of service. This component of his benefit is 0.2% of his 1978 annual compensation up to $15,000 multiplied by the number of his completed calendar years of service prior to and including 1978. There also is an adjustment of 18% to the past service element to convert to a single life annuity.

        Note: Credited service under the ARP is limited to 28 years. Mr. Ruebenson's benefit will be calculated using 11 years of credited service under the January 1, 1978 through December 31, 1988 Benefit Formula, 17 years of credited service under the January 1, 1989 through December 31, 2007 Benefit Formula, plus the Past Service Element.

        For participants earning cash balance benefits, including Mr. Hale, pay credits are added to the cash balance account on a quarterly basis as a percent of compensation and based on the participant's years of vesting service as follows:

PENSION BENEFITS

(1)

These amounts are estimates and do not necessarily reflect the actual amounts that will be paid to the named executives, which will only be known at the time they become eligible for payment. Accrued benefits were calculated as of October 31, 2006 and used to calculate the Present Value of Accumulated Benefits at October 31, 2006. October 31 is our pension plan measurement date used for financial statement reporting purposes.

(2)

See narrative under the heading "Extra Service and Pension Benefit Enhancements" on page 41 and the heading "Sears, Roebuck and Co. Service" on page 41 for the explanation of the years of credited service with respect to Mr. Liddy's pension benefit enhancement.

(3)

Mr. Hale is not currently vested in his benefits under the ARP or SRIP.

(4)

Mr. Simonson is not currently vested in his benefits under the ARP or SRIP.

(5)

See narrative under the heading "Extra Service and Pension Benefit Enhancements" on page 41 for the explanation of the years of credited service with respect to Mr. Sylla's pension benefit enhancement.

        The benefits and value of benefits shown in the Pension Benefits Table are based on the following material factors:

Benefit Formula Under the ARP

        The ARP has two different types of benefit formulas (final average pay and cash balance) which apply to participants based on their date of hire, or individual choice made prior to the January 1, 2003 introduction of a cash balance design. Of the named executives, only Mr. Hale earns cash balance benefits.

        Benefits under the final average pay formula are earned and stated in the form of a straight life annuity payable at the normal retirement date (age 65). For all participants who earn final average pay benefits and become members of the ARP after 1988, including Messrs. Liddy, Simonson, Sylla, and Wilson, the final average pay formula is the sum of the Base Benefit and the Additional Benefit, which are defined as follows:

•

Base Benefit =1.55% of the participant's average annual compensation, multiplied by his credited service after 1988 (limited to 28 years of credited service)



•

Additional Benefit =0.65% of the amount, if any, of the participant's average annual compensation that exceeds his covered compensation (the average of the maximum annual salary taxable for Social Security over the 35-year period ending the year the participant would reach Social Security

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retirement age) multiplied by his credited service after 1988 (limited to 28 years of credited service)

        For participants earning cash balance benefits, including Mr. Hale, pay credits are added to the cash balance account on a quarterly basis as a percent of compensation and based on the participant's years of vesting service as follows: