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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region Forums41,000 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
ann---
(1,933 posts)my two-year contract is over with these clowns. I will NEVER use verizon wireless again. It is thievery.
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.
LiberalFighter
(51,170 posts)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.
TwilightGardener
(46,416 posts)absolutely NOTHING to any of these corporations?
riverbendviewgal
(4,254 posts)They are not in a union, eh? So they are not so protected.
leftyohiolib
(5,917 posts)but they do it to union employees as well
DavidDvorkin
(19,497 posts)(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.
JustAnotherGen
(31,937 posts)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.
FarCenter
(19,429 posts)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.
JustAnotherGen
(31,937 posts)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.
FarCenter
(19,429 posts)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.
Yo_Mama_Been_Loggin
(108,304 posts)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.
FarCenter
(19,429 posts)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.