Dear President Bush,
I am a 64 1/2 year old, 1995 retiree from AT&T (now Lucent
Technologies) and am concerned as to how your government
leadership plans to protect pension trust funds and benefit
funds for retirees. My letter to you is a request for your
support of an audit of Lucent. Specifically, that you contact
the Secretary of Labor, Elaine Chao, and ask her department to
conduct or have conducted on her behalf, an audit of Lucent's
pension trust & benefit funds and publish the findings to Mr.
K.(Ken) Raschke of the LRO. (Lucent Retirees Organization)
Please allow me to explain the "why" of my request of you.
Recently, Mr. Raschke, on my behalf, asked Lucent Technologies
to allow for an independent audit of our pension fund in order
to give us 127,000 retirees assurance that our fund is on
sound footing and secure. Lucent rejected the request. Then,
on June 13 of this year, Mr. Raschke, sent a letter to
Secretary Chao requesting advice and support. She has not
responded to Mr. Raschke as of this date.
I sincerely hope you will allow me the opportunity to give you
a little "sound bite" of my personal account, but also one
that is representative of thousands like me. I'd like nothing
more than to feel "warm & fuzzy" in my declining years and
trust Lucent is managing my pension fund, misc. benefits and
medical benefit funds appropriately. But recent events have
left me uncomfortable and untrusting. At nearly 65 years of
age, the last thing I'm looking for is a "new career path" or
having to spend my life savings in medical bills. I worked
hard and long to protect my investments and assure my and my
families well being. However, in the past 2 years I have been
informed by Lucent of significant retiree benefit reductions.
None of which were a result of my poor productivity, lack of
sales, lousy quality, incompetent management style, a
dissatisfied customer or a lack of business. I was simply an
easy cost cutting target. Not on the roles, no voice and no
recourse -- how sweet !! When I retired I was told I could
"expect" certain compensations, for life, in return for my 32
years of dedicated service to the health & welfare of the
business. Actually, it was with the help of company paid
analysts that made us so comfortable in my and my wife's
retirement decision. We were aided by them in filling out
investment forms, developed life style budgetary charts, were
advised of suggested income levels to support that life style
and part of the formula was always the basic retirement
income, personal finances, investments, insurance payouts if
an untimely death occurred, medical benefits and monies a
surviving spouse could expect to receive. So, when we agreed
to retire it was with specific retirement compensation
documented in my separation papers as determined in the
workshop seminars sponsored by the company. Sounds great !
Now, in the past 2 year period, my personal medical benefit
payment has escalated from zero dollars to $156.21 each month.
My dental plan has escalated from zero dollars to $62.00 each
month. My death benefit, payable to my spouse, which was 1
year of salary at the time of retirement, was simply
eliminated by a letter. Medicare, part "B" compensation was
eliminated at the stroke of the CEO's pen. The explanation
given for each eliminated or reduced item was Lucent couldn't
support the expense. We read quite often of companies which
renege on their pensions or benefits or both. How can I help
but worry when I experience the first shoe dropping and see
the report from the Securities and Exchange Commission that it
levied a $25 million penalty against Lucent for its "lack of
cooperation" in the SEC's investigation of securities fraud
charges against Lucent ?
Simply stated, the monies in the pension fund and benefit
plans was paid for by retirees for retirees. We have a right
to know how our money is invested as well as the right to have
a voice in the company if we disagree with a certain
direction. Not that we will implement a change, but that we
are of value and have a say in the monies we invested for our
future. What could be a very simple and painless process,but
apparently unacceptable by Lucent management, is to have an
audit of those funds by an independent firm and it's findings
be ---- all is well. Is Lucent being stubborn, hiding
something or is the tail wagging the dog ? If unchecked and
unchallenged, have I seen the end of my benefit reductions ? I
seriously doubt it.
In closing, and in reference to my opening paragraph, what are
you going to do to help those of us that have "served our
time" in the support of commerce & the country the better part
of our lives ? What are you going to do to see that the plan
continues to have sufficient assets to guarantee payment of my
pension & benefits even if the business closes it's doors or
opts not to pay their retirees ??
I look forward to your reply so I can best cast my vote on
Election Day.
Sincerely,
Jim Peltier
jim.peltier@sbcglobal.net