SRA Retiree Updates

AT&T and Cell Phones for Soldiers Surpass First-Year Goal, Raising Over $2 Million to Support U.S. Troops with Free Phone Cards

Recycling Program That Sends Phone Cards to U.S. Troops Has Helped Recycle More Than a Million Wireless Phones, Surpassing Initial $1.4 Million Goal

AT&T's Recycling Support to Continue Via 2,000-Plus Company Stores and Volunteer Efforts

San Antonio, Texas, July 2, 2008

Recycle wireless phones and help connect U.S. military families with free phone cards. AT&T Inc. (NYSE:T) and military charity Cell Phones for Soldiers (CPFS) have been connecting those dots since July 2007 — by recycling cell phones in more than 2,000 AT&T stores across 1,100 U.S. cities. And, as Independence Day approaches, the company and the charity are celebrating that CPFS has now raised more than $2 million — including recycling proceeds and financial and in-kind donations — since the two joined forces.

To celebrate the one-year milestone, AT&T is now pledging another year of recycling support for the charity — in all company-owned stores.

CPFS collects and recycles wireless phones and uses the proceeds to buy free phone cards for U.S. military members and their families. The first-year results of the program have surpassed the 2007 goal of raising $1.4 million, enough to provide a free 20-minute phone card for all troops stationed in Iraq at that time.

Phones recycled through AT&T stores, community drives and online tools have added volume to the broader efforts of the CPFS recycling program, which has now collected more than a million total wireless phones since July 2007 — including 90,000 phones collected via AT&T channels in just the past three months.

The Retiree Association profiled this issue is the National Association of Prudential Retirees Inc. (NAPRI). Be sure to read the articles by Bob Foresta, NRLN Vice President - Legislative Affairs, and by Bob Martina, NRLN Vice President - Grassroots Networks. Among the other articles are profiles on two NRLN Board Members who are leaders in the Association of US WEST Retirees. They are Kathleen "Kitty" Kennedy, of Tucson, Arizona, President of Telephone Retirees Association of Arizona, Inc. (TRA-AZ) and Mary Ann Neuman, of New Hope, Minnesota, Chairwoman of the 5-state Northwestern Bell group of retirees

AT&T Corporate Headquarters to Move to Dallas

San Antonio, Texas, June 27, 2008

AT&T Inc. (NYSE:T), the world's largest telecom company, announced today that it will move its corporate headquarters from San Antonio to Dallas to gain better access to its customers and operations throughout the world, and to the key technology partners, suppliers, innovation and human resources needed as it continues to grow, domestically and internationally.

The move will begin in the coming weeks and is expected to be complete around yearend. It is expected to involve about 700 of the company's nearly 6,000 San Antonio-based employees.

"We're a growing global company with customers and operations around the world," said Randall Stephenson, AT&T chairman and CEO. "Being headquartered in Dallas will benefit our long-term growth prospects and human resources needs, and our ability to operate more efficiently, better serve customers and expand the business in the future.

"San Antonio is a great city with much to offer and it's been good for AT&T as we've grown from primarily a five-state local phone company to the world's largest telecom company," Stephenson said. "San Antonio will continue to be a major operations and employment center for us."

Following the move, AT&T will have about 1,700 more employees in San Antonio than before it relocated its corporate headquarters to the city from St. Louis in 1992. The company's Telecom Operations group, which serves residential and regional business customers in 22 U.S. states, will remain in San Antonio.

Senate Finance Committee Staff Withdraws Proposal

An extraordinary team effort has caused the Senate Finance Committee staff to withdraw consideration of a proposal to modify Section 420 of the IRS Code to allow the transfer of billions of dollars from traditional defined benefit pension plans to fund 401(h) healthcare accounts to pay the healthcare benefits of active employees.

Because the National Retiree Legislative Network's Washington, D.C. staff members Phyllis Borzi, Marta Bascom and Michael Calabrese learned that the Senate Finance Committee was giving serious consideration to the proposal, we were able to insert ourselves early on into the dialogue to provide a voice for retirees. Early this month, Marta, Michael and I prepared a "white paper" opposing the proposal under consideration and offering alternatives. The "white paper" served as a basis for a conference call with two Senate Finance Committee staff members.

Due to our concerns following the call that the staff might propose legislation to the 21 members of the Senate Finance Committee, the NRLN formed a coalition with the AFL-CIO and the Pension Rights Center to oppose the proposal under consideration. Next, the NRLN's Grassroots Advocates who live in the states that have a member on the Senate Finance Committee responded to our request to send emails to their Senators. Those letters from constituents got the attention of several Senators and the Finance Committee staff members.

On Wednesday, June 25, one of the Finance Committee staff members with whom we had communicated earlier this month requested a conference call with the NRLN. On the Thursday conference call with Marta, Michael and me, the staff member informed us that due to the high level of opposition to the proposal it would be withdrawn.

The withdrawn proposal, motivated by the opportunity to gain additional corporate tax revenues, would have had devastating consequences on the future pension security of 44 million present and future retirees. Heading off this potential legislation shows once gain how important it is for retirees to have a strong voice on Capitol Hill.

This is why we must continue to grow the NRLN's Grassroots Network, gain affiliation with additional Retiree Associations, and attract more Individual Members who will make an annual contribution to fund our legislative efforts. Association solicitation on behalf of the NRLN and encouraging family members and friends to sign up in the Grassroots Network at http://capwiz.com/abtr/mlm/signup/ and become an NRLN Individual Member are critical to our continuing success. Details are available at www.nrln.org.

Thanks again to the NRLN's Washington staff members, the AFL-CIO, the Pension Rights Center and NRLN Grassroots Advocates for coming together to say with one strong voice that it would be a mistake for the Senate Finance Committee to support legislation allowing Section 420 transfers from defined benefit pension plans to be used to pay for healthcare benefits for active employees.

Together we can make a difference in the lives of retirees.

Bill Kadereit, President
National Retiree Legislative Network

The driver of a nearby car gave me a strange look and said,"Why don't you just put it in park?"