Transcript Annual Meeting 2008

Association of Raytheon
Retirees, Inc.
Special Annual Meeting
May 19, 2010
Agenda
 Introduction: Bob Hamilton
 Keynote Speaker: Philip Amaru, Elder Law Attorney
 Break
 Financial Overview of Retiree Medical: Joe DeAmbrose
 Pension Review: Al Swenson
 Membership: Mel Weinzimer
 Financial Status: Dave MacLellan
 Communications: Bob Hamilton
 Break
 Guest Speaker: Karen Albert, SOARS 55
 Keynote Speaker: Phil Cohen, Patriot Program
 General Discussion
 Adjourn
2
Your Directors
Director
Years at
Raytheon Background
Raytheon
Bill Burditt
38
International Business Mngmt.
Joe DeAmbrose 30
Director, International Taxation
Bob Hamilton
Programs Manager
27
Dave MacLellan 37
Corporate Tax Department
Jack O’Halloran 32
Manufacturing Manager
John Rudy
41
IT/Engineering Management
Al Swenson
34
Controller, Director of Internal
Audit
Mel Weinzimer
38
Director, Surveillance Programs
And of course Amy Morris, Office Manager
3
Your Directors
4
In Memoriam
Aaron Dermarderosian Sr.
Aetna Tashjian
Antonio Philip Terranova
Arthur Paul Simonelli
Bob Ross
Bosonjara
Charles E. Jacobs Jr.
Claude K. Roberts
Dale Newton
Daniel Frasca
Denis L. Bourassa
Don Banks
Donald C. Lowell
Donald E. Morin
Edward G. Johnson
Edward R. Zilinsky
Gerald Maurice
Gil Trabucco
George Assad
Harry Savastano
Harvey C. Schmidt
Henry Bouchard
Henry "Hank" Charles Howarth
Henry J. Schultz Jr.
Jack" Scalese
Janet Waterman
Jim Galluzzo
Jim Hanson
Joseph D. Lorenzo
Joseph Laudani
Justin Margolskee
Mr. William Richard "Bill" Grace, Sr.,
Paul A. Michitson
Paul R. Michaud
Pete Galligani
Peter A. Richardson
Peter A. Richardson
Ray L'italien
Ray Quick
Richard F. Eaton
Robert R. Rheaume
Roger Travers
Ron Zanazzo
Stanley J. Ruzanski
Stephen A. Carelli
Ted Langley
Thomas Edward Lusk Jr.
Tony Corsino
Thomas J Hill
Vernon Francis Haverstick
5
Tally Quorum Votes
Joe DeAmbrose
6
Keynote Speaker:
Philip C. Amaru
 Philip C. Amaru, a prominent Elder
Law Attorney of the Law office of
Philip C. Amaru
 Medicare and Medicaid rules and
asset protection strategies
7
Break
Time to stretch for a few minutes
8
Financial Overview of
Retiree NON- PENSION
Medical
and Life Insurance
Joe DeAmbrose
9
Life Insurance
Appears to be Legacy Raytheon
Only
10% of Pre-Retirement Coverage
Funding-Retired Lives Reserve
Funding Estimate--$50M-$100M
10
Medical Financial
Highlights
Legacy Raytheon, Hughes, TI, and E-Systems
Pre and Post Age 65 Variations
Pre-1993 Retirees—Varies Legacy
Raytheon-- 50%
Post 1992 Retirees---Generally $516
Annual Cap
Total Participants---22,000
Funding-VEBA Trusts and Pension Accounts
Funding Estimate—About $344M
11
Medical Financial Highlights
2005
2006
2007
2008
VEBA Assets
$269.4
$294.1
$298.8
$202.6
Pension Assets
$165.9
$189.7
$200.7
$141.6
Total Assets
$453.3
$483.8
$499.5
$344.2
Total Liability
$1056.4
$856.4
$760.1
$691.3
Unfunded
Liability
$621.1
$372.6
$260.6
$347.1
Net Liability
Per Financials
$747.0
$499.0
$375.0
$469.0
Note: $ million
12
2009
$439.0
Medical Financial Highlights
Other Medical Data
2005
2006
2007
2008
$148.2
$98.5
$88.8
$73.8
Raytheon Contributions
$60.3
$40.9
$32.2
$18.2
Employee Contributions
$68.0
$48.0
$46.1
$38.2
$113.0
$130.1
$48.3
$35.4
Change in Actuarial
Assumptions
$<28.2>
$77.6
$51.6
$41.0
Raytheon Financial
Expense
$38.0
$17.0
$<16.0>
$<26.0>
$21.0
$19.4
$15.5
$3.1
$5.6
$9.9
$8.2
35,907
22,733
23,855
22,557
Benefits Paid
Actuarial Gains
Raytheon Direct
Payments
Administrative Expenses
Participants
Note: $ million
13
2009
$<11.0>
Retiree Medical Premiums
Single Coverage/Medicare Eligible
Raytheon Sponsored
Plans
2005
2006
2007
2008
2009
“Plus” Plan
2,508
924
920
920
708
Estimated Avg.”D”; No
Donut Hole
450
450
450
450
“Plus” with Estimated
“D”
1,374
1,370
1,370
1,158
1,284
1,428
Other Available Plans
Blue Cross HMO Blue
Plus (Advantage)
Blue Cross HMO Blue
Premiere (Advantage)
2,076
14
Form 5500 Data: 2008
$M
Plan
Employer
Employee
Net Assets Participants Contibution Contibution
Raytheon Salaried
$5,049.4
Raytheon Non-Bargaining (Hughes)$3,792.6
Raytheon Hourly
$573.0
Raytheon E&C
$581.6
Greenville Hourly
$50.4
Garland Hourly
$18.4
Raytheon Subsidiaries
$6.5
Marine Systems
$35.6
Raytheon Bargaining Plan
$564.2
Hourly Employees of NCS-Florida
$28.6
Totals
$10,700.3
91468
46204
18204
13770
2516
794
853
393
12695
986
$675.7
$509.2
$15.5
$0.0
$6.0
$2.0
$1.0
$7.1
$0.6
$3.1
$12.8
$19.5
$0.3
$0.0
$0.0
$0.0
$0.0
$0.0
$1.5
$0.0
187883
$1,220.2
$34.1
15
Pension Review
Al Swenson
16
Pension Fund Status
Outline
Raytheon Commitment
Fund balances
Changes in fund balance 20082009
Funding requirements
Services
Met with Raytheon Treasury 4/27/10
Annual Report and Raytheon 10K
17
Raytheon Co. Commitment
Diane Avellar- Vice President, Raytheon Company
letter dated 4/26/2010
 “As we have done in the past,we want
to assure you that Raytheon remains
fully committed to meeting all pension
benefit obligations to the more than
60,000 retirees and survivors,
estimated at over one billion dollars
for 2010.
 Additionally Raytheon remains fully
committed to paying pension benefits
to our future retirees and survivors,
just as we have done for almost 60
years.”
18
Pension Fund Balances
Fund
Balance
Equities
Fixed
Income
All Other
Total
12/31/09 12/31/09 Raytheon
($ In Millions)
%
Policy
6,538
53% 45-65 %
3,600
29%
25-40%
2,336
18%
0-30%
12,474
100%
19
Pension Fund Changes
($ In Millions)
Beginning Balance 1/1/09
10,581
Actual Return on Plan Assets
1,965
Company Contributions
1,107
Benefits Paid
<1,097>
Other
<82>
Ending Balance 12/31/09
20
12,474
Pension Funding
Domestic Plans
(Estimated)
84% Accumulated Benefit
Obligation (ABO)
76% Projected Benefit
Obligation(PBO)
Funding anticipated to be
100% PBO by 2014
21
Raytheon Company
2009 Financial Results
Net Sales:
Operating
Income:
Backlog:
ROIC:
2007
21.3B
2.4B
2008
23.2B
2.6B
2009
24.9B
3.0B
36.6B
10.5%
38.9B
11.1%
36.9B
12.2%
2009 Was Another Strong Year for Raytheon
22
Metrics
23
Membership
Mel Weinzimer
24
Membership Status
1225 Active Members
30 New Members
25
Welcome New Members
Frank Di Resta
Peter Dziekan
Patricia Hatch
Bryan Johnson
Kenneth Kung
Joseph McIsaac
Jerry Satkus
James Small
Ronald Pfeiffer
Gary Gressler
Mark McGhee
Harold Barton
Benjamin Bashan
Richard Segui
Fred DePorter
Robert Given
William Goodall
Fred Benham
Leigh Blevins
Richard Brooks
Richard Hazel
Linda Knox
Karl Pfeil
John Rudy
David Schubert
Dennis C. White
Jean Wright
Richard Poster
Joseph Cove
Carol O'Brien
26
Social Events
27
Membership Initiatives
• Met with K. Peden, Raytheon VP to request access
to current and future retirees
• Placed newspaper ads to solicit new members
• Contact your friends, associates, fellow retirees
and encourage them to join and/or renew
membership
• Our retirees continue to stay in touch with their
Raytheon friends and co-workers
Let us know when your circle of Raytheon retirees
is getting together
• We welcome your suggestions and ideas
28
Financial
Dave MacLellan
29
Financial
Item
Budget:2010
Income
Dues
Amount
14,500
Expenses
Newsletters & Mailings
Office Rent
Miscellaneous
NRLN Contribution
Payroll Taxes
Annual Meeting
Telephone and DSL
Secretary's Salary
Total
Net Income/(Loss)
30
7,000
4,500
2,000
1,500
1,200
1,000
900
700
18,100
(3,600)
Communications
Bob Hamilton
31
Newsletter Continues
With Expanded Content
 Health and pension plan articles
remain the cornerstone of our
publication
 Bruce Nogueira continues to write his
most popular health articles
 We continue to use
 Syndicated columnists
 Social and luncheon announcements
 Retiree written articles of interest
 Accomplishments, travel, hobbies, public
service
32
Newsletter Appearance
 The format has continued in booklet
form
 Reduced printing costs by printing at
the Minuteman Regional High School
 Sometimes causes schedule issues
 E-mail is still the most cost effective
means of distribution
 Members are encouraged to use e-mail
33
Our Website Has
Expanded
 Increased the content and changed
the format
 Specific articles of interest are
highlighted and dated
 More current than the newsletter
 We are able to update it more
frequently than the newsletter
 www.raytheonretirees.org
34
RSS Feed Added
Really Simple Syndication
Continuously searches and
provides abstracts plus links to the
articles of interest
Raytheon
Medicare
Health Care
Pension Legislation
Estate Planning
Retiree News
Social Security
35
Recent Web Site Traffic
23.00%
20.60%
10.40%
9.20%
4.60%
4.40%
3.80%
3.20%
Massachusetts
California
Texas
Florida
New Hampshire
Arizona
Virginia
Unknown
2.60%
1.80%
1.60%
1.60%
1.40%
1.20%
1.20%
1.00%
36
South Australia
Oregon
Colorado
Indiana
Rhode Island
Pennsylvania
Maryland
Connecticut
86,366 Pages Viewed by
4,484 Returning Visitors
14000
12000
Web Hits
10000
Page Loads
8000
Unique Visitors
First Time Visitors
6000
Returning Visitors
4000
2000
0
Q3 2007 Q4 2007 Q1 2008
Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009
37
Q3 2009 Q4 2009 Q1 2010
Popular Web Pages
Page
Home Page
Members
Benefits
Upcoming Events
Newsletter Archives
Raytheon News
Join Us
Goals
2008 2009 2010
201
126
39
32
22
22
13
8
232
125
55
17
14
7
14
4
164
118
120
47
8
20
20
4
38
A random
sample of
approximately
500 recent hits
reveals that
many members
are searching
for their
colleagues
Memoriam Section
Needs Improvement
Several members provided
information in the past
We urgently need new volunteers
to take up the challenge
Many of you have written
inquiring about the memoriam
feature
39
Membership Software
Updated
Easier to maintain membership
list
Simplifies office operations
Dues returning to January
renewal
Still 12 months extension of
membership
40
The Future Brings
Challenges
 We constantly respond to member
issues
 Act as an intermediary with Raytheon
 Need to Expand membership
 Considering adding a forum where
retirees can communicate directly
on items of interest to them
 Need a forum-master volunteer
41
Break
Time to stretch for a few minutes
42
Service Opportunities after
Reaching 55 (SOAR 55)
 Karen Albert is a Volunteer working with
individuals, groups, organizations and the
media to promote volunteer
opportunities.
 SOAR 55 works closely with over 85
nonprofit organizations in Newton and
the MetroWest area that are in need of
volunteer assistance.
 SOAR 55 offers maximum choice and
flexibility to its volunteers as it matches
personal interests, skills and individual
schedules with interesting and rewarding
opportunities to serve.
43
Phil Cohen, Director, Missile
and Ground Programs
 Phil Cohen, as part of Raytheon
Integrated Defense Systems (IDS) ,
is responsible for Patriot missile
and ground programs at all
manufacturing facilities at
Raytheon.
 Phil will talk about the new Patriot
multibillion dollar production
contract and the challenges that it
presents.
44
General Discussion
45
Thank You For Coming
This concludes our
membership meeting
Please feel free to visit the
museum or their snack bar
Hope to see or hear from you
in the coming months
Stay well
46