Frequently Asked Questions

Questions Answered Below

Will the Retirees Association really be able to make a difference?
Aetna has, until now, been very good to us. Is the Association out to hurt Aetna?
Are you really against Aetna management or will you try to work with them?
Is ARA being unrealistic about today’s business environment?
Why are you going after Aetna when they have been so good to us?
Why aren’t you being more aggressive and filing a class action lawsuit against Aetna?
On what will our money be spent?
When will we get an accounting of the funds going to ARA?
May active employees join the Aetna Retirees Association?
Wouldn’t we be better off with average employees representing us rather than (former) executives?
Will you be addressing the Cash Balance pension plan?
Since becoming a member, I've already changed my mailing address. Whom do I notify?
What if I have questions or comments?

Will the Retirees Association really be able to make a difference?

Aetna, like all corporations has to be concerned with its image/reputation. When the Retiree Association is able to speak for a substantial part of Aetna's eleven thousand retirees there is a better chance that those retirees will be heard.

Aetna has, until now, been very good to us. Is the Association out to hurt Aetna?

It would be foolish of us to set out to hurt Aetna. Aetna is the source of our retirement income and benefits. We are convinced that in the long run we will be helping Aetna if we can get the new leadership to understand that they are a better company when their employees and retirees can count on them to keep their promises. Aetna was great when it acted in that way. It needs to be that way again if it is to return to true greatness.

Are you really against Aetna management or will you try to work with them?

We will continue to try to meet with Aetna management when appropriate. We have told them that they should feel free to call us whenever they hear something that concerns them. We will be happy to clarify what we are doing and (often just as importantly) what we are not doing. We have to admit that, so far, we have not found our individual efforts to be effective. Perhaps, when they understand the number of retirees who are in support of our efforts, they will be more responsive.

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One or two retired executives have observed that what have to recognize how the business environment has changed. Is ARA being unrealistic about today’s business environment?

While only very few former executives have raised this question, it is one all of us have thought about. If we were still at Aetna, would we be doing the same thing? Would we have a very different view of the business environment if we were still working? It is a question that is impossible to answer accurately. We can only hope that we would look beyond what other companies are doing and consider the strong ethical history in which Aetna has been rooted. There are three aspects to this history which seem relevant:

First and foremost we made solemn promises on which people based their life decisions. That can not be taken lightly.

Second, Aetna management decided that Aetna would keep the entire retiree base when it sold the property/casualty, life and financial businesses. Carrying all these retirees on a smaller employee base guaranteed that the Company’s expense ratio would be higher than other health benefit companies. Using that higher expense now as an excuse to change retiree benefits seems inconsistent at best; unethical (and possibly illegal) at worst.

Lastly, we question whether the growing gap between executive compensation and the average retiree pension is fair. Certainly we want current leadership to be well rewarded for enhancing shareholder value and Aetna results continue to improve. That is good (or should be) for retirees as well as active employees. Aetna has always set a higher standard for employee compensation…for example your Editor remembers the implementation of “Performance Bonus” from which all employees could benefit. No other Company that we knew had such a program for all employees. Those affiliated with ARA believe in that higher standard. We know it would be hard to maintain in today’s business climate – maybe even more difficult than it used to be.

We understand the difficulty associated with such decisions but that doesn’t relieve responsible managers from keeping the promises made by their predecessors. In the parlance of a current biography, “I did it because I could” is hardly the standard we will willingly accept.

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Why are you going after Aetna when they have been so good to us? I’m sure they wouldn’t do this if they didn’t have to.

We all had this kind of trust in Aetna leadership for a lot of years. However, reducing reserves by $32 million and flowing that into earnings in the face of very satisfactory earnings coupled with a $750 million tax refund and executive compensation which may be worth hundreds of millions (for example Jack Rowe cashed in over $26 million on stock options in one week of September of this past year) has made many of us question whether Aetna should be trusted to act in the best interest of retirees.

We admire those of you who are able to keep the faith. Most, however, seem to be willing to join in our efforts. It’s important to remember that “Aetna” is not an entity in itself…it’s made up of people, and people can change its direction.

Why aren’t you being more aggressive and filing a class action lawsuit against Aetna?

As ARA Board Chairman John Dwyer has said in various interviews, we are not anxious to take Aetna to court. We are all very devoted to the Company. It was a wonderful company for us. You don’t act precipitously against a company you feel so positively about. However, that being said, we are preparing material in case legal action proves necessary. You can get more detail and even help in this effort by going to the Get Involved section of the website and click on “HERE” at the fourth bullet.

On what will our money be spent?

The Association has a website, a newsletter, the expense of computers and other office equipment, mailing costs and similar expenses. When we have enough income we also hope to hire legal support for our efforts (much of the initial legal expense for incorporation has been avoided because of support by retired Aetna lawyers). Other retiree organizations have also found it effective to purchase company stock in the organizations name so that it may place shareholder proposals on the shareholder agenda.

All of these things cost money. Our workers are all volunteers and we initially have donated office space and furnishings. We will spend your money as judiciously as we know how.

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When will we get an accounting of the funds going to ARA?

First be assured that the Leadership Team and Board of Directors review ARA’s financials on a regular basis to assure they are being accounted for in accordance with sound accounting procedures and controls. At the end of the fiscal year, which ends in December, we plan to have our books audited by a CPA. In addition, ARA will comply with all federal and state financial reporting requirements. Once these steps have been taken we will make our reports available to any member who would like to schedule a review in our offices.