Summary of LRO Board Meeting held on September 16 & 17, 2005
Greensboro, North Carolina
1. The meeting opened with report regarding the 8-16-05 meeting with Lucent representatives.
2. The LRO intends to write to all Lucent Board Members and inform each person as to its position(s). .A copy of the letter will be provided to the LRO membership.
3. Discussion was held concerning funds to be committed. It was agreed that advocates will develop a list of the most important items for consideration. The LRO must prioritize and expend funds that are in support of the best interests of retirees.
4. The LRO’s main focus should be on supporting legislation that is in the best interest of the LRO constituency. On the legal front, support lawsuits that meet that same test.
5. With regard to the Q & A section of the LRO website: it was agreed that only issues directly affecting Lucent and LRO members would be inserted.
6. It was agreed that the LRO’s fundamental goal is the security of its members’ health care, pension and life insurance benefits. LRO should endorse and pursue the 420 Death Benefit Case as well as supporting our resolutions to the greatest degree possible. The LRO is interfacing with the attorney on this.
7. Discussion was held regarding support of proxy submittals for this year. The Board will support expenditures for proxy letter preparation and mailings to the appropriate shareholders.
8. It was agreed that the LRO Board should inform LRO members and the media regarding LRO issues with Lucent since the first of this year.
9. Discussion regarding Media Relations:
-Contact with reporters on major newspapers and producers for television news networks has continued. This effort has produced in recent months stories of Lucent retirees and widows of retirees in the Wall Street Journal, and on ABC, CBS and NBC national evening news programs.
-Working relationships with reporters will be used to draw attention to any legal action against Lucent that is supported by the LRO.
10. Treasurer’s Report was given. LRO expenditures and income from dues are in line with the 2005 budget. Hopefully the most recently published newsletter will result in accelerated dues paying activity. That would be a big help in supporting the planned activities outlined herein.
11. Discussion pertaining to Lucent’s operating profits per diluted common share and, a comparison of Medicare D and Lucent’s Prescription Drug Plans. It was recommended that the LRO consider the following to deal with the impending and present prescription drug problem:
a- Support legislation that permits the importation of lower cost drugs from other countries.
b- Get behind legislation that supports the introduction of competitive bidding for drug
c-Support legislation that takes the position that actuarial equivalency of private industry’s prescription drug plans to Federal Government’s Medicare D is an insufficient test to qualify for government subsidy.
12. Conference call with one of the attorneys associated with the Chastain versus AT&T lawsuit Received update on the status of the case as well as what assistance the attorneys would like to get from LRO. The complaint has been filed. Some of the points he made are as follows:
a- Case will be heard in a different circuit court than other cases that have been filed.
b- AT&T unsuccessfully filed to dismiss. The Chastain lawyers are optimistic.
13. Discussion regarding amendments to the LRO By Laws. A number of suggested modifications were reviewed, incorporated, and collectively agreed upon. The revised By Laws will be submitted to our attorney for review and comment. The legally approved By Laws will then be sent to all Board members for final review and approval.
14. Agreed: Membership dues will remain at the current $25 per year. There will be no discount for signing up later in the year.
15. It was affirmed that spouses are eligible to be LRO members and some already are members. Spouses are to be encouraged to join the LRO.