231 Pinetuck Lane    Winston-Salem, NC 27104   336-765-9765

10/13/2005

Ms. P.O. Kimmet

Senior V-P HR

600 Mountain Ave.

Murray Hill, NJ 07974

Dear Pamela:

Re:  Lucent Refunds on 2005 Health Insurance Payments

The LRO appreciates that Lucent sent refunds to retirees for some of the medical coverage contributions made by those retirees in 2005. However, we are disappointed that, during our meeting in August, the Lucent representatives were not forthcoming in advising the LRO attendees as to Lucents intentions.

Many retirees are now calling our representatives with many questions.  To provide Lucent with the opportunity to provide its perspective and to assist our members, we request a response to the following questions:

• Our members have received checks for various amounts some with differences of over 100% even though their monthly health insurance fees (not including dental or subsidized dependents) were the same or close to the same.  What criteria and/or formula were used in determining refund amounts?
• Lucent again made a point of stating .the five-year maintenance of cost requirement that led to the current refund will expire for management retirees on Sept. 30, 2006.  Is the legal requirement not one of maintenance of benefits instead of maintenance of cost?
• We strongly believe that Lucent owes its retirees information as to its future plans. Such information is necessary so retirees can have as much time as possible to plan for their and their familys financial future.  Sending a package in mid-October requiring a response within a few days does not provide adequate time. What are Lucents plans after Sept. 30, 2006?

A prompt and informative response to the foregoing questions is requested.  In addition, please provide a copy of the current package for 2006. 

Sincerely,

Ken