GE Shareholders

Although I did say that Immelt was doing a great job, it was in reference to last year's $22.2 BILLION in net earnings and not in his or GE's overall performance.

Additionally, he cut me off at the knees and wouldn't let me finish my plea and rationale as to why GE should and could afford an annual COLA for ALL GE retirees.

The information that Mr. Immelt and the rest of 15 board members did NOT want to hear - AND THE PRESS TO REPORT BECAUSE this WIIL BE THE ONLY WAY FOR GE TO IMPLEMENT A COLA and THAT IS FOR THEM TO GET THIS KIND OF PUBLICITY, is pasted below. In fact, I've changed my mind and my whole presentation is pasted below, with a notation of where I was cut off.

Wednesday, April 23, 2008 – GE Annual Shareholders Meeting – Erie, PA

Good morning: My name is Bill Balyszak, of Auburn, NY. No, not Bill Belichik. I’m Bill Balyszak. The other Bill is somewhere in New England and I hear he’s just finished coming out of rehab. Is that true?

I just have a few comments to add to your latest ‘bump in the road’ and that is that some ‘drastic changes’ need to be made in the GE Corporate Hierarchy in order not to have anymore of these ‘bumps in the road.’

In fact, Mr. Immelt, I believe you were sandbagged by some of your underlings to miss your numbers by such a wide margin. In fact, I believe the market overreacted to your quarterly shortfall and presented a buying opportunity. I personally bought some GE stock. Unfortunately, my ‘buy’ couldn’t quite turn the market around. Now if my name was George Soros?

Enough said on that subject.

Now let me move on to a more pressing issue, and that is THE 210,000+ GE RETIREES’ LOW PENSIONS.

Although I feel that the December, 2007 pension increases should have been much larger than the actual 3% or so, I’m confident my fellow retirees are nevertheless thankful for this one time increase, as am I.

However, I feel that if in lieu of this one time minimal increase, the Board - in its stead or in addition to – should have implemented an annual COLA. This change would have been a much more equitable solution for all of us pensioners – union and non-union.

First, let me give you a synopsis of the Pension Plan, etc. that will show some very compelling numbers that substantiate the fact that a pension COLA – and more - is very affordable for GE.

 From 1998-2003, GE had pension surpluses that generated ‘pension credits’ that flowed – or moved – onto your Income Statements and boosted GE’s earnings by $8.8 billion. I and 210,000 other pensioners never received a penny of these ‘excess billions’ but we’re sure many within the GE executive ranks did. We believe it would have been much more equitable if GE shared this additional wealth with all retirees instead.

 On 12/31/07 - and in spite of this $8.8 billion movement – the
Pension Trust stood at $59.7 billion and was still overfunded by $16.8 billion - which was up by $5.3 billion from 2006’s overfunding - and was funded at a whooping 139% of its Liabilities.

 According to the 2007 GE Annual Report, the Principal Pension Plans had a ‘Gain on Investments’ of $4.5 billion (great!) and ‘Paid out Benefits’ of only $2.6 billion. As one can see, GE could have increased pensions by 50% and still had over $ ½ BILLION surplus from just the ‘Gains on Investments’ alone.

 However, because of GE’s latest ‘bump in the road’, and with the increasing pension surpluses, I sincerely hope the Board is not planning another ‘pension credit’ hit to OUR Pension Plan to bail out the bottom line of GE because of missed quarterly estimates.

 Additionally, in 2007, GE booked a record breaking $22.2 billion in Net Income. Congratulations to one and all, Mr. Immelt. You and GE are doing a great job here. And I don’t care what that gunslinger, Jack Welch says.

 In 2007, GE did not contribute one red cent towards the Pension Plan and hasn’t done so since 1987.

 And in 2007, GE increased their dividends by 11%, the 32nd straight annual increase. Fantastic. Keep it up!

However, this same Generous Electric that can raise dividends by 11% or more, for 32 straight years; has a huge $16.8 billion overfunding in our Pension plan, booked $22.2 billion in net profits last year and hasn’t contributed anything into the pension plan in the last 20 years says it can’t afford an annual Cost Of Living Adjustment of 3 to 6% for its retirees?

Ladies and gentlemen of the Board, that is truly being disingenuous!
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I was cut off at this point by Mr. Immelt and not allowed to finish, (although we’re allowed to have at least 5 minutes to speak, which the above didn’t take that much time,) So, listed below is the rest of my presentation that was never presented.:

But I’m also a GE shareholder; so dividend increases are great for me. Thanks again.

But how about the other thousands and thousands of GE pensioners that had to sell their GE stock - or never owned any to begin with - to supplement their low fixed pensions? These dividend increases didn’t help them 1 iota.

We retirees are being pummeled by the ravages of inflation! Especially in areas as basic as health insurance premiums, medical bills, prescription drugs, food, energy and housing. GE can raise their prices or sell their underperforming businesses - such as you did with plastics – to compensate for these shortfalls but what recourse do the retirees have? Become a Wal-Mart greeter or a McDonald’s clean-up person? Hell of way to spend their ‘golden years’, don’t you think?

Who would have ever dreamt that my paltry Social Security would outpace my GE pension for 25 years of service as an exempt employee in this day and age? And how many more GE pensioners are in this same – or worse - untenable situation? Thousands upon thousands, ladies and gentlemen.

We believe that no matter who does any analyses of GE’s balance sheet or the Pension Trust, the conclusions will show that there’s enough money for everyone concerned to get their ‘fair share’ and without jeopardizing the financial stability or integrity of GE or our Pension Trust Fund.

This is GE’s chance to walk the walk and take the lead and show America its equitable regard for the loyalty, dedication and hard work of all of its past employees. And that’s something that’s been forgotten by most of corporate America today – including the General Electric Company.

We retirees don’t ask for the world but we do ask that the Company we all helped build in the past and handed off to the next generation, be not forgotten.

All we ask for is to be able to keep our heads above the rising tide of inflation. And we don’t believe that’s asking too much.

And remember, Mr. Immelt and other members of the board, when you go into discussions on this, it was us retirees - when we were young - that helped make GE what it is today!

A Pension COLA. It’s the right thing to do. Period!

Thank you very much for allowing me to speak today.

Bill Balyszak
6039 South Street Road (315) 253-9216
Auburn, NY 13021 bfsfinancial@adelphia.net