September 4, 2008
PRESIDENT’S MESSAGE

Chuck Gilbert

EARLY AUGUST 2008

FROM THE BOARD ROOM

LOOKING AROUND

I am surrounded. Surrounded by Retirees. Telco Board members to be sure.

By any other name they are Retirees…..Just as important, we are all Volunteers. We have known each other for years as PacBell people. Then SBC people. Now AT&T people…. "What goes around comes around," so the old saying goes.

Here is a closer view of your Board of Directors. Many of the Male board members are of the, "Greatest Generation." Newscaster Tom Brokaw gave those of the genre this much deserved recognition. 65+ years ago their turf was Omaha Beach, and small miserable Islands in the Pacific with names no one knew. They drenched the sand with sweat, blood, tears, courage and the Red White and Blue. Their country had a cause and they stepped up to the line. I was reminded of all this at the Board Meeting. It started with Chuck Muller, long time member of your Telco board. He brought up the name Joe Suozzo, a Telco member since 2003. Recently, Joe left for a better place. Part of his legacy…The U.S. Navy’s Silver Star for his commitment to duty under fire at Omaha Beach. Joe lived and so did the first hand story teller Chuck Muller, he too was there. We have not forgot you Joe….Taps. There are other stories. I have not heard all. Now a word about the Ladies….Ms.Muriel Wick, Secretary, Ms.Phyllis Hinshaw, Treasurer and Donna Portzer, Board Member. Proven talent. Telco is fortunate they volunteer to serve.

OK…..what’s this all about? It is about service to fellow Retirees. It is about your Chairman, S.K. Emery taking time out of his vacation this month to address a group of Retirees in the Sacramento area and then Orange County on a Saturday. He shared with them the importance of knowing their benefits and stepping up to the line to do what they can to help protect and defend their legacy. And the legacy does need protecting. If we don’t protect it, no one else will. On the other hand, Corporate Boards are pledged to protect their company’s bottom line. And for the most part they do. We want AT&T to be healthy and treat Retirees fairly.

Our presence reminds AT&T Corporate Officers we are here, we are vigilant, we are great in number. We do this by appearing at AT&T shareholder meetings with well thought out proxies. Further, Telco Vice President Monte Baggs participatesin a coalition of AT&T associations like Telco. Together they work with AT&T to resolve common issues that affect pension payments, health care and other benefits we earned and have come to appreciate.

Your President, (me), sits on the NRLN Board of Directors. This is where the rubber meets the road when it comes to legislation, i.e., taking Retiree’s message to members of Congress. It takes money, the "Mother’s Milk of politics" to support legislative effort. Our member dues and donations help pave the way to the Halls of Congress. No…we are not Lobbyist in the strictest sense. We promote the preparation of Bills with the expert help of an Attorney and legislative advocate in Washington, D.C. It is a small dedicated force that gets the job done.

The Professionals tell us our strength lies in our vote, our appeals to our specific legislators, especially when requested by Telco/NRLN for a, "now," issue. For example, there are firms on Wall Street that salivate when they look at the money in Retirement Funds. Currently they want to purchase certain retirement funds for what we believe is their own interest, but not in the best interest of Retirees. NRLN mounted an all out effort to derail this ill conceived plan before it gained traction in Congress. Maybe you were asked to write a letter….If you put pen to paper you can feel like you are getting something back…..The plan appears to be dying of its own ugliness. You helped make it happen.

NRLN’s Cap Whiz system makes it easy to send a letter via e-mail. If you do not have access to e-mail then it is back to the cap and quill. What ever…do something, anything to help the cause….. Our cause. ….continued fair treatment by our past employer.

One last item…..It has to do with character building at 75. The key word is humility. I get an on going dose from members, e.g., Board members get copies of letters from Retirees. Some write something like this "Thank you for what you are doing for us."…. "Here is my donation. I wish I could afford more."…..."Keep up the good work. Send me information. I will write. I will call." Many Board members know some of these folks. I do. And some of them are hard up against it. Yet they want to do something. And they do. As president I find I get paid inadvertently with lessons I cannot buy.

 

Your President,

Chuck Gilbert

Chairmans Comments

AT&T Group Long-Term Care Insurance Plan

As part of its comprehensive benefits package, AT&T provides eligible employees, retirees, and dependents the opportunity to elect Long-Term Care (LTC) benefits. The AT&T Group Long-Term Care Insurance Plan is an optional, participant, pay-all plan that pays benefits for extended care when a covered individual has an ongoing illness or disability and cannot care for him or herself. This document provides some information on the LTC benefits offered to actives and retirees from Legacy SBC, Inc. More detailed information on the LTC benefits available can be found within the official plan documents (Available at: http://att.jhancock.com). (username: T) (password: mybenefit)
Or Call 1-800-247-3020

Description of Benefits:

1. The AT&T Group Long-Term Care Insurance Plan offers two levels of coverage: nursing home only coverage and comprehensive coverage.

2. Nursing Home Only Coverage: Covers care received in a nursing home or assisted living facility for the cognitively impaired up to the daily maximum benefit (DMB), which the insured elects when enrolling in the plan. The DMBs are $100, $145, $225. All have a corresponding lifetime maximum benefit (LMB) which equals (365xDMB).

3. Comprehensive Coverage: In addition to Nursing Home and Assisted Living Facilities, it also covers Home Health Care, Adult Daycare, and Informal Care. The DMB/LMB amounts that the insured elects are the same as available for Nursing Home only coverage.

Official Policy Number, Policy Holder, and Plan name:

1. Policy 27283 issued to Southwestern Bell Telephone Company (policy holder)

2. Official name: AT&T Group Long-Term Care Insurance Plan

3. Coverage is underwritten by John Hancock Life Insurance Company

Eligible to apply for coverage:

1. Eligible Legacy SBC, Inc. employees in the following categories who are actively-at-work: regular, term, or temporary part-time or full-time, management or bargained employees (only those bargained employees who have bargained for this benefit).

2. Eligible Legacy AT&T Corp. management employees in the following categories who are actively-at-work: regular, term, or temporary part-time or full-time.

3. Eligible retirees of Legacy SBC, Inc. Subsidiaries.

4. Eligible Legacy AT&T Corp. management retirees.

5. Spouses or Legally Recognized Partners of eligible employees and retirees.

6. Parents and parents-in-law of eligible employees.

Retirees 81 years of age or older may not apply for this benefit

Apply for Coverage:

1. All eligible employees can enroll with guaranteed acceptance, regardless of health status, by applying within the first 31 days of becoming eligible.

2. Employees applying after their first 31 days of becoming eligible and all other eligible family members must provide proof good health. This includes completing a full application with a statement of health section.

 

Paying Premiums:

3. Employees and their spouses/legal partners have premiums deducted from employee’s paycheck.

4. All others (including retirees) have option of direct bill or automatic bank withdrawal.

Communication Materials:

Plan Summary from John Hancock click here

    The username and password are as follows

    username: T
    password: mybenefit
    or call (1-800-247-3020).

 
Telephone Concession -- Class-Action Lawsuit

The federal class-action lawsuit filed against SBC in March 2006 has laboriously proceeded through the United States District Court - Western District of Texas.

FINDINGS

"Defendant seeks to immediately appeal the court’s finding that the Out-of-Region Retiree Concession is a pension plan and also seeks a stay of the case pending that appeal. Defendant’s motions are DENIED. […] This is a civil enforcement action of the Employee Retirement Income Security Act (ERISA) concerning defendant SBC Communication, Inc.’s (SBC) management of a ‘defined benefit’ retirement plan known as ‘Concessions’.

[…] In summary, the Court found that Concession is an ERISA pension plan and that Concession should be analyzed separately from telephone discounts provided by Defendant to employees and retirees that live within Defendant’s service areas.

[…] Defendant also contests the Court’s finding that Concession provides retirement income. The Court made the finding of fact that Concession was intended to provide retirement income, in addition to creating goodwill. Pension plans can be in-kind payments, akin to provision of a service or reimbursement. Pension plans may be contingent on participants’ satisfying certain prerequisites… finding a pension plan where eligibility for payment was contingent on retiree’s decision not to live in the same geographic area and work in the same industry in which he had been previously employed.

[…] For reasons stated herein, Defendant’s Motion to Certify for Immediate Appeal and Defendant’s Motion to Stay Proceedings are DENIED."

Signed this 1st day of August, 2008.

William Wayne Justice, Senior United States District Judge

(Retirees who live out-of-region are included in the class regardless of whether they receive the 600 minutes.)

At the conclusion of the class-action lawsuit, the law firm prosecuting this case will place a legal notice in major newspapers and periodicals announcing the court’s decision and providing specific information for plaintiff’s to file for damages.

(The Telco Retiree Association, Inc. will also place a copy of this notice in a future newsletter.)

 CAREMARK

Caremark has introduced a new procedure to ensure prescriptions meet professional standards and clinical appropriateness. The following statement was provided by AT&T Health Benefits:

"It is possible. as part of the service provided to AT&T, CVS Caremark does a concurrent safety and utilization review at mail that targets specific drugs and drug classes commonly prone to inefficient and inappropriate utilization and prescribing. The prescription order is reviewed at mail via an edit system then a clinician reviews the case and makes appropriate suggestions to the prescriber. Edits are based on clinical literature and updated on a regular basis. All edits are reviewed annually by non-Caremark physicians for clinical appropriateness. If a concern is identified, CVS Caremark communicates directly with the Prescriber who reviews and approves any change. This communication is clinician-to-clinician. It is guided by the standards of professional practice with the intent on improving clinical appropriateness for each therapy."

Sumner K. Emery, Chairman

Budget Summary

REVENUE    
DUES & DONATIONS SUB TOTAL TOTAL
MEMBER DUES 41,333.00  
MEMBER CONTRIBUTIONS 5,520.40  
DIVIDENDS & INTEREST    
STOCK DIVIDENDS 68.00  
OTHER 40.00  
     
  REVENUE TOTAL $46,961.40
     
EXPENSE    
BANKING 260.51  
MAILING 2773.24  
PRINTING & REPRO 4765.15  
OFFICE SUPPLIES 398.22  
MEETINGS 7143.69  
PROFESSIONAL SERVICES 3868.89  
NRLN DUES 3500.00  
MISCELLANEOUS 498.74  
     
  EXPENSE TOTAL $23,208.44
     
  REVENUE Vs. EXPENSE $23,752.96