Background

AT&T CONCERNED EMPLOYEE RETIREE COUNCIL ON RETIREMENT PROTECTION   (ACER)

AT&T CONCERNED EMPLOYEE RETIREE COUNCIL ON RETIREMENT PROTECTION (ACER) was formerly known as ACECORP, AT&T Concerned Employees for Retirement Protection.

As an organization, our membership has always been composed of employees and retirees.  This change formally adds the “R”.

Our charter and mission remains the same:

• To preserve and protect pension and retirement benefits for AT&T's family of employees and retirees through education and communication.

• To inspire positive action to restore and enhance pensions and benefits, including healthcare for retirees and employees; and, offer support with legislative issues relating to pensions, Social Security, Medicare and other aspects that impact the quality of life.

• To support AT&T and encourage our Leadership to return to the values of the Common Bond to renew and strength the confidence of their employees, and succeed in the marketplace.

AT&T CONCERNED EMPLOYEES began in 1998 to educate other employees on how they were financially harmed by the Cash Balance conversion of their existing Defined Benefit Pension Plan., and to encourage them to speak out with us.

 In an effort to protect our AT&T brand name, we sought to prevent adverse publicity by internally addressing our issues. ACE initiated a letter writing campaign to our Executive Officers to tell them of our concern and belief that the Common Bond had been betrayed.  After receiving no response or acknowledgment, we knew other measures must be taken.

An EECO complaint was filed as the first step.   The EEOC referred it to the IRS and Treasury to resolve.  It was the “virtual hot potato”.   We continuously wrote to every Congressman and Federal Agency that could intervene.   

The EEOC complaint eventually became the class action lawsuit, “Engers v. AT&T Management Pension Plan, C.A. 98-3660 (D.N.J.)”.  Our case covers over 45,000 plaintiffs and damages of over $1B.  Today, our case is awaiting a decision in Federal Court in Newark, New Jersey.

The Business lobbying groups pushed the IRS, Department of Labor, and Treasury to approve regulations “legitimizing” the Cash Balance Pensions.  At each turn, we were there with our letter writing campaigns to the IRS, Department of Labor, etc. culminating in a rally on the steps of the Treasury Department in Washington, D.C.in April, 2003.  As a group, we have been successful in defeating the big corporate lobbying groups. As of today the AT&T Cash Balance pension Plan is not approved by the IRS.

Since 2000, ACE has filed annual shareholder proposals in an effort to preserve shareholder interest, curb executive compensation, grandfather the defined benefit pension plan and improve employee morale.  Our 2004 proxy to exclude all pension credits from the executive compensation formula was adopted by AT&T before the meeting.  Shareholder Proposals are an important vehicle to gain visibility credibility. (Shareholder Proxy tab)

ACE has supported all legislation that strengthened pension, healthcare and retirement benefits. ACE has teamed with other retiree organizations, pension rights groups and AARP to protect and enhance our future. All members of ACER are members of National Retiree Legislative Network, and contributors to the Pension Rights Organization.  Please click on the names for more details.