About ARA

In Brief

The Aetna Retirees Association, Inc. (ARA) is a nonprofit association incorporated in Connecticut pursuant to Connecticut statutes and focused exclusively on the protection of retirement health and pension benefits for Aetna retirees and their beneficiaries.

A Little History

Ours is a very short history. Prior to the February 6th announcement that Aetna was eliminating the subsidy for dental, all those currently involved were content in the knowledge that they had Aetna's promise of benefits throughout their retirement. Those who retired before 1988 were confident of the Company's promise that these benefits would be free of charge.

Then things changed. Without knowing what others might be doing, John Dwyer was getting calls and e-mails from many retired co-workers who were feeling betrayed. John was particularly concerned because he felt that as an Executive Vice President in the Casualty Division he was the one who made these promises to about 2500 employees in Aetna's behalf.

At the same time, Bob Quinn and Emmett McTeague, two former Vice Presidents from Corporate Human Resources, were having similar feelings. They had made the promises themselves and guided many other HR people in advising those being laid off in the '90's that there were great advantages to retiring. While the dental benefit was not a major benefit and would not cause a financial problem for the people at their level in the organization, Bob and Emmett were familiar with data that showed the average retirement benefit to be around $6,000. For people at that income level, the new dental payments combined with increased deductibles in medical could consume as much as 10% of their income. These people deserved to have their concerns heard.

Bob and Emmett met with Company representatives and prepared materials to help those who wanted to voice their concerns to Chairman Rowe. John met with Company representatives and spoke to the issue at the Shareholders' meeting.

It was quickly clear that Aetna management had no intention of changing its position. They had already booked the savings into first quarter earning. The rules for debiting earnings because of anticipated benefits due retirees, allows Aetna to take a large credit to earnings even when canceling a small benefit like dental. In this case canceling a $3 million benefit resulted in a $32 million credit to earnings in the first quarter. Retiree conversations and letters had no impact. The rationale was: everybody else is doing it. (You all remember that one from when you had teenagers.)

Early in this process John learned of Bob and Emmett's efforts and vice versa, and they soon decided to combine their efforts. The first steps involved getting additional help and forming an organization. Fortunately they began getting calls and e-mails from other retirees who wanted to help.

Bob Gilligan is one of the many retirees angered by the Company's actions. He contacted the leaders of other retiree associations and decided he wanted to be a part of the solution. He soon became President of the new organization. Working with retired lawyers he filed for incorporation of the Association. During this time Bob Quinn worked with John Dwyer to put together our Board and with Emmett McTeague and Bob G. to put together a leadership team. Dues were set and an announcement sent out. The Aetna Retirees Association, Inc. was in business.

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