The Annual meeting of the TelCo Retirees Association, Inc. was held in La Mesa, California February 8, 2007. Membership attendance was a disappointing 28 members! Our agenda encompassed a number of critical issues warranting the full attention of members.

Corporate Secretary Muriel Wick placed in motion a vote for the re-election of all corporate Directors. The motion was made, seconded and approved by all attending members. Mr. Charles Muller (Director) then called for a motion for the re-election of the Corporate Officers (President, Vice President, Treasurer, and Secretary). The motion was made, seconded and approved by all attending members.

Mrs. Jeanne Brady (Nevada) was duly elected to the Board of Directors and Mr. Charles Gilbert elected to the office of Vice President.

Mr. Charles Gilbert (TelCo Vice President) attended the Annual Meeting of the NRLN in Washington, D.C., January 2007. As a primary member of the NRLN, the TelCo Retirees Association, Inc. is entitled to have a member serve on the NRLN Board of Directors. (Mr. Gilbert was elected a Board member during the January Meeting).

A major thrust of the NRLN will be the adoption and implementation of a legislative agenda that will require association members to participate in the development of a Grassroots Network Advocacy To Communicate With Elected Representatives in Washington, D.C. The Importance of the NRLN Agenda Issues For Millions of America’s Retirees and Workers cannot be overstated.

The NRLN has approximately 50% of the 435 Congressional Districts currently covered by NRLN representatives.

During coming months NRLN "Action Alerts" will be sent out through the use of their Capwiz system requesting members to send letters, make telephone calls or send computer messages to their elected representatives to gain support for a particular bill or provision in a bill.

Each participating association in the NRLN (including (TelCo Retirees Association, Inc.) will be asked to appoint key members within their organization to assume a leading role in the NRLN undertaking.

Vice President Chuck Gilbert, Director Richard Reid (southern California) and Director Larry Love (northern California) will be guiding our association’s involvement in this most important legislative plan. We will be asking all members to assume responsibility for this task.

The following 2006 financial report and the 2007 estimated budget were presented during the Annual Meeting.

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Membership Chairman (Director Mr. Lee Brown) highlighted the planned 2007 TelCo membership drive. There are approximately 30,000 retired Pacific Bell/Nevada Bell retirees. Current membership in the Association is 2,000, and has remained at that level for a number of months in spite of numerous efforts to attract new members.

In the coming weeks members will receive a personal letter from the Association announcing a major membership drive. A gift will be awarded to each member who "signs up a Pacific Bell retiree" who is not a current member of the Association.

The "membership letter" will include full details of the campaign including a membership application. It’s imperative as we go forward in efforts to challenge AT&T’s "takeaways" of our promised benefits; we gain the support of all Pacific Bell retirees. (The Association is depending on your personal support!)

Your TelCo Retirees Association, Inc. has promulgated two (2) separate and distinct stockholder proxies for AT&T’s Annual Shareowners Meeting.

Proxy #1 (This proposal requests the AT&T Board of Directors initiate the appropriate process to amend the company’s governance documents to provide that corporate Directors shall be elected by the affirmative vote of the majority of the shares represented in person or by proxy.)

On January 18, 2007 TelCo Retirees Association received the following statement from the United States Securities & Exchange Commission: "The proposal requests that the Board initiate the appropriate process to amend the company’s governance documents (certificate of incorporation or bylaws) to provide that Directors shall be elected by the affirmative vote of the majority of the shares represented in person or by proxy."

(It’s interesting to note the TelCo Retirees Association, Inc. formally filed its proxy statement on October 9, 2006 and the AT&T Corporation changed its corporate bylaws on November 20, 2006!)

Proxy #2 Submitted by Mr. Monte Baggs, Director. ("This proxy is a mandatory proposal to amend the AT&T’s Bylaws by direct shareholder action to require the Board of Directors to seek shareholder ratification of any severance agreement (broadly defined) with a senior executive officer that provides benefits with a total value that exceeds 2.99 times the sum of the executive’s base salary plus target bonus. )

The Baggs proposal further states that "severance includes severances triggered when executives resign or are terminated after a change in control or, absent a change in control, are terminated, retire or resign without cause."

(Since the Securities & Exchange Commission rules limit’s a single proxy per "qualified shareowner," the TelCo Association asked Director Monte Baggs to consider submitting a second proxy statement for the benefit of AT&T stockholders.)

AT&T challenged Mr. Baggs’ proxy and our rebuttal to AT&T’s challenge is currently before the SEC. We are awaiting the SEC decision.

The Class Action law suit currently being promulgated by a Washington, D.C. law firm is proceeding through the federal court. AT&T requested a dismissal of the action (denied by the federal judge) and has requested a change of venue to a different federal court (also denied by the federal judge).

The Washington, D.C. law firm formally requested all telephone concession documents from AT&T.. AT&T is currently processing the request.

"This Class Action law suit involves the following persons: (a) retirees of an SBC company (including, but not limited to Ameritech, Pacific Telesis, Southern New England Telephone, Southwester Bell Telephone Company, and any predecessor) receiving a telephone concession after they retired anytime from January 1, 2002 to the present and who lives outside the SBC service area; or

Current or former employees of any SBC participating company with more than 5 years of service with an SBC participating company as of June 1, 2005, who were eligible or might become eligible to receive an out-of-service area telephone concession after they retired: or

Members of the immediate family of any person in group 1 or 2, including surviving spouses and the retiree dependents (and including Registered Domestic Partners of Pacific Telesis employees and retirees) during the time that SBC had a policy to provide employees of such SBC participating companies with a telephone concession."

(PERSONS WHO ARE MEMBERS OF THE CLASS DO NOT NEED TO DO ANYTHING TO REMAIN IN THE CLASS.)

The following message was recently received from the Washington, D.C. law firm prosecuting the telephone concession Class Action law suit who was asked to review merger agreements between SBC and Pacific Telesis to ascertain the possibility of legal action to restore the death benefits callously altered by AT&T: "I have initially reviewed the documents you forwarded to my office. Based on what I have seen so far, litigation may not be the best option, but I am still reviewing this issue."

The TelCo Retirees Association plans to continue pursuing this issue for Yellow Page retirees.

On February 16, 2007 AT&T informed our Association that Fidelity Investments and AT&T have resolved the issues surrounding the 1099R Distribution Statement From Pensions, Annuities, Retirement or Profit Sharing Plans, IRA’s, Insurance Contracts, etc,

The 1099R statement was mailed to over 66,000 AT&T retirees. Fidelity has been issuing similar statements to their clients for over a decade without controversy. The format (as issued) is accurate and in conformance with standard accounting procedures. Retirees can submit the 1099R document with their 2006 income taxes.

On February 16, 2007 AT&T informed our Association that retirees who are receiving full Medicare reimbursement should receive the January/February increases with either their March or April pension statement.

The TelCo Retirees Association, Inc. is the recipient of increasing numbers of members’ "donations" in addition to their annual dues. The Association is most grateful for this recognition of our efforts to "ensure the continuation of our promised benefits."

The Association identifies "donations" and uses these funds for items essential to our operation. Examples: purchase of electric mail openers and postage scales.

Recently, we were the recipient of a generous donation from Arlene Wright, a retiree living in Arizona. Arlene wrote, "I believe in what your organization is doing. I also know it takes money. I know you are making waves for I have received more informational material than I have in many a year." With that statement, she enclosed a check in the amount of $500. I asked permission to publicize this most gracious gift to our Association and made a commitment to use it wisely in our ongoing programs to "protect our benefits."

Sumner K. Emery
President