http://news.yahoo.com/s/nm/20051206/bs_nm/telecoms_verizon_retirement_dc
NEW YORK (Reuters) - Verizon Communications (NYSE:VZ - news), the
second-biggest U.S. telecoms firm, said on Monday it was restructuring
retirement benefits for 50,000 managers in a bid to save $3 billion over the
next 10 years.
Under the plan -- for which Verizon will take an estimated fourth-quarter
pre-tax charge of $97 million -- managers will no longer earn pension
benefits or receive service credits toward healthcare benefits from next
July.
Employees currently covered by a defined-benefit plan -- which typically has
a fixed payout at retirement based on earnings and years of service -- will
keep pension benefits already earned, and on June 30 will receive an
18-month enhancement to the value of their pension and retiree medical
benefits.
Frank Muto
Co-founder - Washington Bureau for ISP Advocacy - WBIA
Telecom Summit Ad Hoc Committee
http://gigabytemarch.blog.com/ www.wbia.us
- Original Message -
Actually, VZ is just hitting management:
Late Monday the company said it plans to freeze its guaranteed pension
plan for 50,000 of its managers, a move that could save the
telecommunications giant $3 billion during the next decade. The company
said it would expand its own contributions to managers' 401(k)
retirement savings plans and noted employees would retain benefits they
have already earned, but not accrue any additional benefits.
MCI killed all pensions under BK. So working for VZ means 401k and lots
of disgruntled employees who will blame loss of revenue NOT on bonehead
Tele-Baron management policies but on competitors for eating their
lunch. That means more DSL slamming; more delays in repairs and
installs. CLECs and ISPs will feel the brunt, since the Tele-Barons have
done an excellent job of manipulating the CWA leadership. (Anyone
remember the commercial with the wife of the SBC employee who was going
to lose his job over UNE-P???)
Regards,
Peter
RAD-INFO, Inc. - NSP Strategist
We Help ISPs Connect Communicate
813.963.5884
http://4isps.com
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