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Thu Nov 29, 2012, 01:01 PM

41,000 Retirees Say Verizon Is Dumping Them

DALLAS (CN) - Verizon is dumping its pension obligations to 41,000 retired managers at the end of the year and transferring them to Prudential, "simply to enhance its corporate credit rating," retirees say in a federal class action.
Lead plaintiff William Lee, on behalf of beneficiaries of the Verizon Management Pension Plan, sued Verizon Communications and five affiliates, and The Prudential Insurance Company of America, in Federal Court.
Verizon announced in October that it will no longer provide pensions to its 41,000 management retirees and that Prudential will provide them insurance annuities instead.
The plaintiffs say this "unprecedented" action violates the Employee Retirement Income Security Act and protections under the Pension Benefit Guaranty Corporation.
"Verizon, one of the most financially successful U.S. corporations, intends to 'de-risk,' or abandon, its long-term responsibility for financing and paying the pension obligations of 41,000 retirees, simply to enhance its corporate credit rating" the 40-page complaint states.

http://www.courthousenews.com/2012/11/29/52660.htm

13 replies, 1716 views

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Arrow 13 replies Author Time Post
Reply 41,000 Retirees Say Verizon Is Dumping Them (Original post)
douglas9 Nov 2012 OP
ann--- Nov 2012 #1
MuseRider Nov 2012 #7
LiberalFighter Nov 2012 #12
TwilightGardener Nov 2012 #2
riverbendviewgal Nov 2012 #3
leftyohiolib Nov 2012 #6
DavidDvorkin Nov 2012 #8
JustAnotherGen Nov 2012 #4
FarCenter Nov 2012 #10
JustAnotherGen Nov 2012 #11
FarCenter Nov 2012 #13
Yo_Mama_Been_Loggin Nov 2012 #5
FarCenter Nov 2012 #9

Response to douglas9 (Original post)

Thu Nov 29, 2012, 01:06 PM

1. I cannot wait until

my two-year contract is over with these clowns. I will NEVER use verizon wireless again. It is thievery.

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Response to ann--- (Reply #1)

Thu Nov 29, 2012, 02:42 PM

7. CREDO

We could not wait any longer. I have had nothing but the best service and care from Verizon but my husband and I could not take it anymore. Yesterday we started the process, there is a $350 bailout right now that will most likely take care of what you would have to pay Verizon to get out. Check it out, they are such a good progressive company. Been wanting to do this for years.

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Response to MuseRider (Reply #7)

Thu Nov 29, 2012, 04:47 PM

12. I was checking them out yesterday but still clueless

I am hearing impaired but do not have the usual type of hearing aid. I'm not sure about what phones will provide the necessary volume for my need. Right now, I only have a land line phone that has 45 decibel increase which works great for me.

My hearing aid has a piece that kept in my shirt pocket and means all sound needs to reach that point when talking to someone. So if I talk to someone face to face it needs to go down instead of to my ears.

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Response to douglas9 (Original post)

Thu Nov 29, 2012, 01:08 PM

2. Sickening. When will people learn that employees mean

absolutely NOTHING to any of these corporations?

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Response to douglas9 (Original post)

Thu Nov 29, 2012, 01:13 PM

3. these people are managers

They are not in a union, eh? So they are not so protected.

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Response to riverbendviewgal (Reply #3)

Thu Nov 29, 2012, 02:06 PM

6. that's what happens when you become managment you sell everything to the whims of the company

but they do it to union employees as well

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Response to riverbendviewgal (Reply #3)

Thu Nov 29, 2012, 03:03 PM

8. When I worked for the phone company

(US West), I was labeled a manager even though I didn't manage anyone. I was a software developer.

They classified as management anyone who wasn't climbing telephone poles or answering customer calls. I think that was standard practice kept over from the Bell system days, and I suspect it applies to Verizon, as well.

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Response to douglas9 (Original post)

Thu Nov 29, 2012, 01:16 PM

4. Dollars and cents

That's what it comes down to . . .


I wonder how much more the Verizon, Fios, Verizon Wireless, Prepaid, Vodafone customers would be willing to pay in order for VZ Comm to continue it in house?


Would it be $10 per month? $8 per month?


And what they would be pay for an EXPANSION of this program? I.E. Extend it to all employees?

I.E. Would anyone at DU pay more to VZW so us 30/40 somethings in the company can get the Pension Plan that these folks have/had?


I think this sucks overall (I was caught in the ass at Global Crossing in 2001 so I know how dangerous this is) - but what would it be worth in terms of monthly bills to make sure that ALL Verizon Employees had a Pension Plan?


I truthfully had no idea it existed - Just re-did my benes last Tuesday for 2013. I'm telling you - this does not exist at all.

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Response to JustAnotherGen (Reply #4)

Thu Nov 29, 2012, 03:45 PM

10. Defined benefit pension plans are very risky

With layoffs, mass terminations, spinouts, mergers and acquisitions, business unit terminations, bankruptcies, leveraged buyouts, etc., tying your future retirement to the fortunes of some corporate entity is very risky.

A defined benefit plan just seems more stable until it isn't.

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Response to FarCenter (Reply #10)

Thu Nov 29, 2012, 04:34 PM

11. That's what I'm thinking



Granted - after my Global Crossing 401K being robbed by them (GC) - I don't even rely on the Verizon 401K per se . . . I use it for tax deduction ONLY and take my chances on my own.

But - I've heard that there are still business units with employees working here today that get this old pension.

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Response to JustAnotherGen (Reply #11)

Thu Nov 29, 2012, 05:23 PM

13. The 401K also shelters investment income.

So you should max out your 401K contributions in order to get the maximum deduction on your taxes and to shelter the investment income from those savings in future years IF the 401K provides the opportunity to diversify your investments in low-fee funds. Many 401Ks put the company match in company stock, and you should roll out of company stock into diversified funds as soon as the plan permits. You have enough company-correlated risk in just being employed by them.

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Response to douglas9 (Original post)

Thu Nov 29, 2012, 01:38 PM

5. I used to work for Verizon

They dumped a defined pension for management several years ago and gave them an enhanced 401K instead. Those mentioned in this article must have retired from VZ before that.

I just retired from Frontier Communications which took over several of Verizon's service areas two years ago. I decided to take the lump sum option instead of an annuity for fear they'd pull the same shit that Verizon has in this case.

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Response to douglas9 (Original post)

Thu Nov 29, 2012, 03:40 PM

9. If Prudential goes bankrupt, does PBGC still step in to pay the remainder?

That would seem to be the major difference from the current arrangement, other than one's view of whether Verizon or Prudential is the more stable corporation.

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