Lucent Retirees Organization

Andy Guarriello, Vice President & Membership Director

6605 Castle Pines Drive – Plano, Texas 75093 Phone: 972-523-7311

Email: LRO Website:

July 16, 2007

Mr. John Hickey, Vice President

Human Resources


600 Mountain Avenue

Murray Hill, New Jersey 07974-0636

Dear Mr. Hickey:

Since Ken Raschke, President of the Lucent Retiree Organization, is on vacation, I am writing to you in his behalf. You called Ken a few months ago in response to his letter to Pat Russo wherein he asked when Alcatel-Lucent would be providing retirees with information as to 2008 healthcare benefits. As you promised, the Alcatel-Lucent advance letter (dated June 30, 2007) is currently being received by management retirees in the United States. Is a similar advisement being sent to management retirees in France?

I must report that the LRO was disappointed by the letter -- because of its’s portent for a further diminishments of benefits and because of its lack of specificity.

In the “yellow envelope” containing healthcare insurance enrollment information for 2007 that retirees received last fall from Lucent, there was the following statement:As we did with the pre-enrollment materials, we are sending this communication well in advance so you can look into 2008 benefits alternatives for you and your family. Lucent will communicate more details early in 2007. We hope this will give you adequate time for planning before changes become effective in January 2008.” Is Alcatel-Lucent planning to shortly send another mailing with specific details about the 2008 healthcare and drug plans? If so, when will that happen? If, as in previous years, there is only a few-weeks open enrollment period to decide, there will hardly be time for adequate planning. last fall’s will not have been met

Evaluating and selecting quality, cost-efficient, healthcare insurance coverage is a complex process and one that, in today’s world, typically requires a significant amount of information and time. Without plan details and cost information as to the healthcare and prescription drug plans Alcatel-Lucent will offer in 2008, retirees won’t be able to make informed evaluations as to whether to remain under the company’s plans or select alternative plans. By not now providing plan details and cost information for the November enrollment deadline for 2008 plans, Alcatel-Lucent is not enabling its management retirees to make the best decision for themselves and their dependents..

The LRO hopes that Alcatel-Lucent can find the moral compass that the company once used to make decisions concerning its retirees. Hopefully, Alcatel-Lucent can use the expanded resources gained through the merger to provide the healthcare and prescription drug benefits that retirees were led by the company to believe that they had earned and would be available to them during their retirement years. I would appreciate receiving a call from you to discuss the potential for engaging in a meaningful discourse on the future of healthcare benefits for management retirees and their dependents who receive their pensions and healthcare coveragescoverages from Alcatel-Lucent..


Andy Guarriello

Copy to:

Pat Russo

Cindy Christy

Frank D’Amelio

Steve Reynolds