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BELLTEL RETIREEWinter 2007-2008 Volume 44
The Official Newsletter for Retirees and Employees of Bell Atlantic, GTE, NYNEX, Verizon and Its SubsidiariesPaid for by contributions from Verizon retirees
It’s just been a few months since theadvisory vote on executive payproxy put forth by Association of
BellTel Retirees president Bill Jonesachieved more than 50 percent of theshareowner vote at the May 3rd Veri-zon annual meeting.
Nearly six months later, on Novem-ber 1st, the Verizon Board of Directorsannounced that it will adopt the policyproviding the Shareowners an advisoryvote on executive pay packages. Thepolicy will go into effect starting withthe 2009 annual meeting.
Sandra O. Moose, Verizon’s presid-ing director said, “The Board believesthat these actions further strengthenVerizon’s corporate governance prac-tices. We believe that it is important toengage in an ongoing dialogue withshareholders and others.”
The company also intends to makeclearer the details of the types of com-pensation executives receive as sever-ance packages. Another policy willrequire the independent compensa-tion consultant to only work for theHuman Resources Committee and inno other capacity at Verizon. This was
another question previously raised bythe Association in past proxy cam-paigns.
The proposer of the victoriousproxy had his own take on the matter.“We retirees and employees have hadto tighten our belts, but it seems to methat the top of the house needs to leadby example,” said Mr. Jones.
Supporters of the BellTel effort,including the AFL-CIO applauded thecompany’s decision. “This is a strongvictory for investors,” stated RichardTrumka, the secretary-treasurer for thenational union. “Shareholders deliv-ered a vote of no confidence in CEOIvan Seidenberg’s pay, and the compa-ny took notice.”
According to FFiinnaanncciiaallWWeeeekk, theshareholders of seven different compa-nies voted in favor of say-on-pay prox-ies this year, but of those, Verizon is thefirst to actually adopt the measure.Insurance company Aflac had alreadyenacted an advisory vote on pay policyin February 2007.
Prior to Verizon’s Novemberannouncement, institutional investorsurged the company to adopt the proxy
measure. In a letter they stated, “As insti-tutional investors, we are concerned bythe disconnect between executive payand corporate performance at Verizonand other public companies.”
The Association and its leaders haveproposed numerous proxies in the lastdecade, with numerous resulting inboard policies clamping down onexcesses in corporate pensions, bene-fits, compensation and event haltingthe practice of using shadow profits toboost executive compensation.
Even with the announcement fromVerizon, AFL-CIO senior legal and pol-icy advisor Heather Slavkin is taking await-and-see stance on whether or notthe company will really put executivepay packages up for a vote. “As we allknow, the devil is in the details,” saidSlavkin. “We are eager to see how itactually looks when the managementproposal is submitted to shareholders.”
The Association will be meetingwith Verizon officers to obtain all of thedetails of these policy changes toensure that they will implement theplans in a manner that complies withthe spirit of our proposals.
Verizon Board Adopts BellTel Proxy
In September, General Motors (GM)and the United Auto Workers(UAW) reached an agreement in
contract negotiations after a two-dayunion strike, with union members rati-fying the contract. Similar negotiationswith Chrysler resulted in initial unionopposition, but were also approved. Atpress time, negotiations with Fordresulted in a tentative four year agree-ment.
However, what GM, Chrysler andthe UAW union leaders are calling asuccessful outcome others are calling abad break for workers, retirees andtheir families.
More important, some experts arepredicting that the deal will set a prece-dent, causing other big companies inother industries to follow suit and ridthemselves of obligations to theirretirees. The deal also puts the nationalhealth care system debate back to theforefront of elected officials’ agendas.
Details of the contract state that theburden of union retiree medical bene-fits will now fall into the hands of theunion, in what GM reps claim will savethe company from paying the near $51billion obligation it has to those retirees
UNITED AUTO WORKERS CONTRACT NEGOTIATIONS:
Will UAW Agreement Model Future of Retiree Benefits?
(Continued on page 8)
SAVE THE DATE:For the 2008 Association of
BellTel Retirees AnnualMembership Meeting
APRIL 23, 2008
At the Sturbridge Host Hoteland Conference Center
In Sturbridge, Massachusetts
Please add this important eventand date to your 2008 planningschedule, and watch for more
details to come.
Many members write to us andask, “Why don’t you do any-thing about a cost of living
adjustment to our pensions?” Let megive you the short answer first. WWeehhaavvee hhaadd tthhee iissssuuee ooff iinnffllaattiioonn pprrootteecc--ttiioonn ffoorr ppeennssiioonnss oonn tthhee ttoopp ooff oouurr lliissttooff iissssuueess ffoorr oouurr eennttiirree eexxiisstteennccee –– oovveerreelleevveenn yyeeaarrss..
The more complete answer is diffi-cult to explain but I will do my best.
Prior to the formation of the Associ-ation, this was the history of pensionincreases. For the period frombetween 1970 until and 1990, pensionincreases were given to retirees, onaverage, every 2 1⁄2 years in the amountof about one half of inflation in for thatperiod. After that, for all formerNYNEX retirees, the last across-the-board increase was given in 1991. ForBell Atlantic management retirees thelast increase was in 1993 and for BellAtlantic craft people the last increasewas in 1996.
The very first conversation that washeld in October 1995 between a fewretirees twelve years ago, that led tothe formation of this Association, cen-tered on this very subject. At that time,NYNEX retirees had not received apension increase in four years. Thatwas significant since it was the longestperiod without an increase in the pre-ceding 25 or more years. That issuewas the reason that a group of usbanded together and contributedfunds to hire an attorney to incorpo-rate: to send our first newsletter and arequest for contributions. It was laterthat we added other issues to our mis-sion, including the protection of ourhealthcare benefits.
We have never taken our eye off of
the pension increase issue. Every timewe meet with Chairman Seidenberg,we discuss the need for a pensionincrease. At every Verizon AnnualShareholder Meeting, we raise the pen-sion and healthcare issues and let theVerizon Board of Directors, Verizonofficers and the shareholders knowthat retirees have seen the buyingpower of our pensions shrink by about40%. At every meeting with the HumanResources officers we also discuss theneed for a pension increase.
What has happened since 1996?There were two things that happenedin recent history that were a result ofAssociation activities:
1) Prior to 1999, there was no mini-mum pension for Bell Atlantic retireesand there was a $400.00 per monthminimum for NYNEX retirees. Effec-tive in 1999, the minimum full pensionfor all service pensioners wasincreased to $500.00 per month, in2000 to $600.00 per month and in 2001to $700.00 per month for eligible par-ticipants with 30 or more years of serv-ice. For those with less service, theamounts were prorated. AApppprrooxxii--mmaatteellyy 2211,,000000 rreettiirreeeess bbeenneeffiitteedd ffrroommtthheessee iinnccrreeaasseess..
2) In the year 2000, a Special LumpSum Payment was made to all servicepensioners who retired prior to Febru-ary 1, 1995. This payment varied from$2,500.00 to $20,000.00 dependingupon the amount of the retiree’s pen-sion and the number of years the per-son was retired. OOvveerr 110000,,000000 rreettiirreeeessrreecceeiivveedd aa lluummpp ssuumm ppaayymmeenntt..
Since then, in spite of all of our con-tinued attempts, there have been nofurther increases in pensions. Part ofthe reason is that the stock market tooka dive in 2000. Coupled with that, avery large group of active employeestook an “early out” incentive. The com-bination of those two events causedthe excess funds from the pensionfund excess funds to drop from $26 bil-lion down to just $787 million. Thefund never went into the red but it tooka sizable hit. Since then, the fund assetsand the excess funds have recovered,but very slowly.
The Chairman states, when we meetwith him each year or so, that theyreview this issue annually and deter-mine if it is required and is prudent,
given financial considerations of thebusiness. During these reviews, Thecompany takes into consideration inthese reviews the added cost of retireehealthcare premiums as they considerthat an added benefit to retirees. Whilethe answer to the pension increasequestion has been “no” for the pastseven years, we are remain hopefulthat we can obtain some sort of infla-tion protection for retirees.
This is an overview of the history ofthis important issue and the actionsand accomplishments so far. II hhooppeeyyoouu uunnddeerrssttaanndd tthhaatt wwee wwiillll aallwwaayysskkeeeepp tthhiiss iissssuuee iinn tthhee ffoorreeffrroonntt ooff oouurrddiissccuussssiioonnss wwiitthh VVeerriizzoonn ooffffiicceerrss..
Winter 2007-2008BellTel Retiree2
President’s Messageby C. William Jones
Published by: Association of BellTel Retirees Inc.P.O. Box 33, Cold Spring Harbor, New York 11724 • (631) 367-3067website: www.belltelretirees.org
E-mail: [email protected] Hotline: (800) 261-9222
A 501 C3 IRS tax-exempt corporation Circulation Exceeds 100,000
UNITED, TO PROTECT OUR FUTURE
Advertising Representative:Jim Falborn (212) 260-1731
President and Executive Director:C. William Jones (410) 770-9485
Office ManagerChristina M. Kruger (631) 367-3067
Board of Directors:John M. Brennan, Chairman (201) 666-8174
Michael S. KucklincaExecutive Vice President (516) 741-2424
Eileen T. Lawrence, Treasurer (718) 229-6078Robert A. Rehm, Chief Financial Officer
(516) 827-0801Richard Knapp, Secretary (914) 779-6292
James E. Casey, Jr., Vice PresidentInformation Systems (540) 439-9568Pamela M. Harrison, Vice President
Union Relations (845) 225-6497John A. Parente, Vice President
Membership (518) 372-0526Joseph A. Ristuccia, Vice President
Government Relations (631) 765-1111Mike McFadden, Vice President Union Relations (856) 767-1131
Patricia Trent Wells, Director(212) 535-6859
Sandra D. Thorn, Director & Legal Counsel(631) 324-2027
Louis Miano, Director Emeritus(781) 444-8080
Association of BellTell Retirees Inc.
Winter 2007-2008 BellTel Retiree 3
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Please call (781)264-3106.
A Thank You from Your TreasurerDear Friends,
In our last newsletter, we spoke to you about our need for funds, and espe-cially the need for increased participation on the part of members who had nevercontributed. Our hope was to raise $165,000 to meet this year’s budget needs.
Your response was heartwarming and overwhelming! As we go to press withthis newsletter, the results of our September appeal have exceeded our goal bymore than $10,000. Thank you ever so much for coming through for us.
Over 1500 members contributed who had never supported us in the past. Theyare very anxious to remain part of our Association. In correspondence accompa-nying their donations, they explained that they misunderstood who we are: atotally independent volunteer organization, whose single source of funds ismember donations – and that our goal is to protect the pensions and benefits ofVerizon retirees. Many erroneously thought we were associated with the Tele-com Pioneers, or even Verizon.
Still others advised us that they did not want to receive the newsletter. Whilethis is disappointing, it is a cost savings for us. We will keep in touch with themonly once each year.
On behalf of Bill Jones and my fellow board members, I send a very specialthank you to those who had contributed earlier this year and responded with asseeccoonndd ggeenneerroouuss ccoonnttrriibbuuttiioonn. You brightened our spirits at a bleak moment,and you confirmed what we have always known: our members are as dedicatedas we are to our cause, and want us to continue to be the voice that Verizon hears.
To those of you who took the time to write to us, thank you for your thoughts,prayers and suggestions. We welcome them.
One more very important item: we send our thanks to Chris and Jackie at ourCold Spring Harbor office, who personally answered too many calls to count.The calls were non-stop for the first 10 days. And no matter how overwhelmedthey were, they always responded as the “voice with a smile.”
Finally, we wish all our members a happy and healthy holiday season. Welook forward to speaking with you in 2008, and sharing our accomplishmentsand goals.
Thank you again; you are the best!Eileen Lawrence,
Treasurer
It has been reported that Verizon isinterested in moving up its discus-
sions regarding the new contract withworkers. The present contractexpires on August 8, 2008. The Asso-ciation has a long history of standingunited with all workers, union andmanagement alike.
Our membership, as of the latestcount, is made up of 44% formerunion people and 56% former man-agement. We have said from ourbeginning in 1996 that we representall retirees regardless of their affilia-tion. Once we retire, we are all in thesame boat.
Association President and Execu-tive Director, C. William Jones, said,“Everyone hopes that the negotia-tions can be conducted in such amanner that a strike is not necessary.There are no winners in a strike.”
“However, continued Mr. Jones,should a strike take place, the Associ-ation asks members to honor picketlines. Further, the Associationrequests that members declineshould the company ask retirees tocome to work to replace strikingworkers.”
Thousands of IBEW and CWAworkers could be affected by a workstoppage; these are families that arefighting for the protection of theireconomic futures.
Association Stands United With Verizon
Workers
Winter 2007-2008BellTel Retiree4
In the wake of the Association ofBellTel Retirees’ victory in theproxy vote requesting “say on
executive pay,” the Securities andExchange Commission (SEC) hasdemanded more information fromroughly 300 companies that detailstheir executives’ salaries and bonuses.
SEC Chairman Christopher Cox hasupped his campaign to get full disclo-sure on executive pay, making it oneof his top priorities. Cox’s main com-plaint is the vagueness with which thedisclosures were written, often includ-ing a lot of hard-to-comprehend legal-speak.
The SEC letters were faxed to theCEOs of companies including PfizerInc., Prudential Financial Inc., Coca-Cola Co., General Electric Co., andAmerican Express Co. According toone insider, receipt of the letterscaused a stir among the CEOs, whoaren’t used to getting direct communi-cations from the SEC.
“The letters are intended to help
issuers better explain why they’vepaid executives what they’ve paidthem,” said SEC spokesman JohnNester.
With Pfizer, the SEC wants a betterdescription of what it is that theboard’s independent pay consultantdoes. Specifically, how the compen-sation board used tally sheets of datato determine executive pay. The tallysheets are supposed to paint a clearerpicture and breakdown of executivepay packages.
Last year, the then CEO of Pfizerhad, in his compensation package, theoption to collect a lump sum of $83million if he retired by the end of 2005.
Corporations that received the let-ters complained that the informationrequested by the SEC, specificallydetails of performance targets that areused to determine compensations andbonuses, are details that need toremain confidential and out of thehands of their competitors. Thesewere among the details required by
the winning Association of BellTelRetirees’ proxy.
The SEC response was a requestthat these companies then provide areal reason why the details need toremain confidential. Furthermore, theSEC wants companies to provide a listof their competitors and any informa-tion used to create target performancegoals that are tied into executives’ payand bonuses, also suggestions frompast Association proxies.
Companies were given at until mid-September to respond to the SEC’srequest for full disclosure, and anotherbatch of letters were expected to reachmore corporations in the near future.
SEC Requests More Disclosure on Executive Compensation
Attention All Snowbirds
For those of you who tem-porarily relocate to warmer
climates for the winter months,won’t you please take the time todrop us a note or email with yourmain and “snowbird” address, sothat we can update our recordsand forward all important retireecommunications to you.
This helps your Associationsubstantially by allowing themost direct and immediate cor-respondence with our members.It also eliminates substantial costof return postage and clericalassistance needed to correct theerrors in our database.
We would be more thanhappy to redirect your mail toyour snowbird address in thecolder months, and then revertto your main address for theremainder of the year.
Please send your information via email at:
[email protected] ormail to us at: P.O. Box 33,
Cold Spring Harbor, New York 11724.
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ATTORNEY ADVERTISING
Sandra DiIorio Thorn began heracademic career as a student ofItalian literature before obtain-
ing her law degree from RutgersSchool of Law in Newark, New Jersey.Prior to that, she graduated cum laudefrom Wells College, where shereceived her Phi Beta Kappa key, andearned her Master’s degree fromColumbia University.
However, Ms. Thorn decided thatbeing a college professor, her initialcareer goal, was not for her. “I wantedsomething more concrete that direct-ly affected people. And I found thelaw.”
While at Rutgers, Ms. Thorn servedas the administrative editor of the Rut-gers Law Review, a post reserved fortop law students.
For the first seven years of her lawcareer Ms. Thorn worked as an attor-ney with Skadden, Arps, Slate,Meagher and Flom, one of the topfirms in New York City. However, shedecided to leave private practice andpursued a career with Verizon, right atthe cusp of the break-up of the BellSystem.
The most recent retiree member tovolunteer her time to the Associationof BellTel Retirees’ board is nostranger to the issues concerning Ver-izon workers and retirees alike- Ms.Thorn worked for the Bell companiesas legal council since 1983.
Before she retired, Ms. Thornserved as Vice President and GeneralCouncil for the company in New York
and Connecticut, handling regulatorymatters and litigation for VerizonNew York
Some of her achievements as a Ver-izon employee include obtaining thefirst cable franchise for the companyin New York, creating and imple-menting an incentive regulation planand supervising both the New Yorkand Connecticut Regulatory LegalDepartments for Verizon.
“I really am enthusiastic to be anAssociation board member; I reallyadmire the members of the board. I
think they are very hard working andI’m proud to be a part of the board.”
Born in Providence, RI, Ms. Thornhas lived in New York for over 35years. She currently resides in NewYork City with her husband.
“At the time [I began working forthe Verizon companies], the regionaloperating companies did not haveanti-trust lawyers because AT&Tretained them, so I became the theirfirst anti-trust counsel,” said Ms.Thorn in an interview with BellTelRetiree.
Ms. Thorn joined the Associationboard in March 2007 to become theonly lawyer in the group. “I knewsome of the members on the Associa-tion board, but more importantly, Iwanted to join because I believe thatretiree health benefits are particularlyimportant.”
“I’ve seen people who did not havethose health benefits,” she continued,“and needed to rely on the kindnessof others to get by. The people whohave worked for the Verizon compa-nies, many of them have worked forthe company for over 40 years andthey need to be protected going for-ward as much as we can help them.”
Ms. Thorn expects that her experi-ence as an attorney will benefit the
Winter 2007-2008 BellTel Retiree 5
Recover Investment Losses!• Pension Buy-Out funds invested & lost?• Stockbrokers mismanaged your money?• Let me help you! (Cases on contingency basis only)
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We have many satisfied BellTel Retirees as clients & have effectively retrieved
hard earned pension $$$ lost carelessly.
Contact Debra G. Speyer, Esq. who representsBell Retirees nationwide. 1-800-510 STOCK
www.wallstreetfraud.com
Are you wonderingwhat the date after yourname on the address lineon the correspondenceyou receive from theAssociation signifies?
It is the date of yourlast contribution, placedthere for your (and our)convenience.
Legal Eagle Fighting for Retirees:Company's First Anti-Trust Expert Joins Board
New Association Board Member Sandra D. Thorn
(Continued on page 8)
In the Fall 2007 newsletter, theAssociation of BellTel RetireesBoard Members sent an appeal
to members who'd yet to make acontribution alerting them of theirstatus as members, as well as theAssociation’s need for donations.
The response was overwhelm-ing; not only did over 1500 of themembers who had never given acontribution send in donations, butwell over 1400 of the members whohad already donated money thisyear gave a second contribution. Atpress time, the donations were stillcoming in, and the Associationwould like to thank all contributorsfor your continued support of ourefforts.
Below are a few excerpted exam-ples of what your fellow Associationmembers had to say in response tothe fall appeal:
*****Giving to the Association is like
giving to yourself. Sorry I didn’trealize I hadn’t kept up with mydues.
Adele V. Anderson, Port Washington, NY
*****Sorry I never took the time to
read the literature you sent andthought it was associated with thePioneers.
M. J. W., Franklin, MA*****
This sentence [YYoouu hhaavvee nneevveerr,,eevveerr ffiinnaanncciiaallllyy ccoonnttrriibbuutteedd ttoo oouurreeffffoorrttss ttoo pprrootteecctt yyoouurr ppeennssiioonn aannddhheeaalltthhccaarree bbeenneeffiittss] pained my con-science that I contemplated suicide.I decided to donate and live.
S. F., New York, NY
*****Keep up the GREAT WORK.
Enclosed is a donation to help ourmembers who have a reason theycannot afford to pay or make a con-tribution to the Association. We arecounting on you to achieve our mis-sion.
John Watts, Ft. Orange, FL
*****I received your letter dated Fall
2007 with great interest and I read itcarefully. You all did a great job overmany years and I am happy to join.Please find my check enclosedherewith.
Adelheid Dexter, Charlotte, NC
*****I thought I did send my contribu-
tions in… [the] early part of 2007.I can only afford so much. As you
know, we have not had a raise inpension since I retired in 1994.
I’m sorry about not sending youany money for January-September2007. However keep up the goodwork that you do on my behalf.
L. Margaret Hathaway, Waterford, NY
*****
Your letter certainly got my atten-tion in more ways than one- somegood and some bad.
All of my last working years andall of my retirement years were con-sumed with the raising and takingcare of the three small children that Ibecame responsible for after beingwidowed at age thirty-seven.
In 1984 I was forced to retire ondisability which added to the prob-lems I already had…and a year and ahalf ago my disability became suchthat I could not live alone…
I’m enclosing a small donationwhich I realize cannot compensatefor all the newsletters in the past,and I do not expect to be left on themailing list as I don’t know what mydonations will be in the future.
…I wish you the best for the futureof the Association of BellTel Retirees.
K. W., Richmond, VA
Editor’s Note: The Associationwill keep KW on the mailing list as a“Complimentary Member.”
*****Thank you for the wonderful job
you and [the Association] are doingon the behalf of us old retired folks.Also thanks for the personalresponse to my last inquiry con-cerning COLA. It answered a lot ofmy questions. I only wish I got sucheffective and timely response fromthe [company] benefit office…some-times it is difficult to get the smallestrequest accomplished.
J. S. L., Gambrills, MD
*****I know you count on contribu-
tions of retirees and you work hardto help all of us. I will try to send asmuch money as I can to help ourcause.
I retired December 31, 1991, andnever dreamed I would never get acost of living increase each year.
Winter 2007-2008BellTel Retiree6
Members Respond to Fall AppealMember Mailbag
(Continued on page 10)
Winter 2007-2008 BellTel Retiree 7
Talk to a retired VerizonManager about your retirementsavings and income strategies.
Jim Biggins is a retired Verizon-Executive Director with a Master Degree
from Bentley College in PersonalFinancial Planning.
Call 877-639-7744 for a complimentaryconsultation and/or a second opinion
regarding your existing strategy.
You can email Jim at [email protected]
.
TALK TO A RETIRED VERIZON MANAGER ABOUT YOURRETIREMENT SAVINGS AND INCOME STRATEGIES.
Call 877-639-7744or Cell: 978-771-6540
for a complimentary consultation and/or a
second opinion regardingyour existing strategy. You can email Jim at
Jim Biggins is a retired Verizon- Executive Director witha Master Degree from Bentley College
in Personal Financial Planning.
In the Spring 2007 issue of the Bell-Tel Retiree, it was reported thatVerizon had agreed to spin off its
New England access lines in threestates to FairPoint Communications,of Charlotte, NC. The transactioncombines Verizon’s personnel andlocal exchange and related businessassets from Maine, New Hampshire,and Vermont with FairPoint.
However, there has been anincrease in both public concerns inthe New England states affected, espe-cially by members of the Associationof BellTel Retirees.
While most Wall Street analysts
view the deal as good for both compa-nies, union workers’ and retirees havemany significant concerns.
While customers have identifiedconcerns about future service qualityand costs, retirees in the region won-der how this might affect their pen-sions.
According to the details of thetransaction which have been dis-closed, about 3,000 Verizon employ-ees will continue their employmentwith the local telephone operatingcompanies located in those states,while receiving paychecks from theNorth Carolina -based FairPoint.
As FairPoint becomes the newemployer of the 3,000 former Verizonworkers, the North Carolina companywill assume pension and other postemployment benefit obligations foremployees remaining with the com-pany.
VVeerriizzoonn rreettiirreeeess ffrroomm tthhee MMaaiinnee,,NNeeww HHaammppsshhiirree aanndd VVeerrmmoonntt rreeggiioonnaallrreeaaddyy rreettiirreedd aatt tthhee ttiimmee ooff tthhee ssaalleewwiillll ccoonnttiinnuuee ttoo rreecceeiivvee tthheeiirr bbeenneeffiittssffrroomm VVeerriizzoonn..
The $2.7 billion sale/merger wasexpected to be completed by the endof 2007.
Under the terms of the agreement,FairPoint will distribute approximate-ly $1.015 billion in 53.8 million sharesof its common stock in a tax-free trans-action to the shareholders of Verizon.FairPoint will also assume $1.7 billionof debt from Verizon.
Fairpoint says the merger will allowit to expand DSL and other broadbandavailability within the first twelvemonths after the completion of theagreement. FairPoint also plans toincrease local operational presenceand create new local service centers toserve the three New England states.
In late October, the CWA asked theVermont’s Department of Public Ser-vice reject the sale. In Maine, a list of 23conditions was recommended by thestate’s Office of Public Advocatebefore the sale and merger could takeplace. The CWA also called for aninvestigation of the merger by theFederal Communications Commis-sion.
Verizon Sale of New England Lines: What Will This Mean for Retirees?
UPDATE: AARP vs. EEOC
As reported in the Fall 2007issue of the BellTel Retiree,
the American Association ofRetired Persons (AARP) sued theEqual Employment OpportunityCommission (EEOC) in order tostop them from enacting an AgeDiscrimination in EmploymentAct (ADEA) exemption thatwould allow corporations to cutoff retiree benefits for those eli-gible for Medicare.
As a result of a district courtruling stating that the EEOC can,in fact, issue the ADEA exemp-tion, the AARP has now gone tothe U.S. Supreme Court to reviewthe Third Circuit Court ofAppeals decision.
In the meantime, the EEOCwas ordered not to issue theexemption until the appeal isheard. A ruling is expectedsometime between October2007 and June 2008.
Winter 2007-2008BellTel Retiree8
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and their families. Instead, $36 billionof that debt will be put in a VEBA trustthat will now be managed by theunion.
“I’m pleased to say that we have aVEBA in place that will secure the ben-efits of our retirees,” said UAW Presi-dent Ron Gettelfinger.
More specifically, the contractwould not include any dental HMOs,only three of the medical HMOs previ-ously offered and all of the PPOs,except Blue Cross Blue Shield of Michi-gan, from which the contract retireeswere accustomed. In essence, underthe new contract, choices would belimited and co-pays would increasefrom $10 to roughly $25.
Other details of the agreementinclude a pension increase for retirees,which is offset by the increase in med-ical care contributions, early retirementoffers to veteran workers, and lowerpay structures for new employees andthe promise of annual bonuses or lumpsum payments for current employees.
While company and union repshave applauded their efforts in negoti-ating these new terms, the fallout forboth is plain to see.
GM can no longer claim the medicalbenefits monies as an asset, which willcause stock prices to fall in the wake ofthe contract negotiations. This in turnputs a strain on the company to makefurther cutbacks, evident in the fact thatnews outlets reported the tentative sta-tus of 15 plants throughout the country;it is forecast that some of them willsoon have to close.
GM reps continue to tout the deal as
a good move for the company, keepingthem competitive in the automobilemanufacturing sector, and in a state-ment said the agreement would be “thebasis for maintaining and strengthen-ing its core manufacturing base in theUnited States.”
According to GM Chairman andChief Executive Rick Wagoner, “Thisagreement helps us close the funda-mental and competitive gaps that existin our business.”
Retirees and UAW union membershave reportedly spoken out against thevote, not fully faithful that the new con-tracts are a good thing, mostly due tothe fact that initial negotiationsbetween the union and the companieswere closed to UAW rank-and-filemembers.
“I’m just wondering what we aregiving up,” said Lyle Coleman, a veter-an GM employee from the Detroit area.Still, he believes the VEBA could be agood thing. “It’s a big burden off thecompany. If it’s managed right, it willbe okay.”
During the ratification process of the
agreement between the union and GM,where the 74,000 UAW members voteon whether to adopt the new contract,one union local in Romulus, MI reject-ed the agreement. The same outcomeoccurred with the local in Messina, NY;the Messina plant is one of the 15scheduled to be shut down.
Even with the few locals not votingfor the agreement, two-thirds of theUAW members agreed and ratified thenew GM contract. With Chrysler, thecontract was ratified by a narrow mar-gin. Shortly thereafter, the automobilemaker slashed about 12,000 jobs.
The Ford contract ratification wasstill underway as of press time. Thetentative agreement mirrored the onesnegotiated with GM and Chrysler inthat retiree benefits will no longer bethe responsibility of the company, andlower wages will be offered to newhires, as well as buy-out optionsoffered to current employees whoretire early or give up their jobs.
Will UAW Agreement Model Future of Retiree Benefits?(Continued from page 1)
Association board and members.“Because I’m a lawyer, I’m hopingthat the Association can use myexpertise. I’m hoping I can helpadvise the Association on when alawyer is needed and when we canrely on ourselves.”
A recent retiree of the company,Ms. Thorn hopes to help recruit morecurrent employees join the ranks ofthe Association. “I also think being arecent retiree gives me more insightas to why the company makes itsdecisions, because the company isnot the company it was when all ofthe other board members retired.”
Today, Ms. Thorn focuses her timeand legal expertise to the New YorkLaw School as an adjunct professor,teaching Legal Reasoning and Writingto students since 2006 when sheretired from her duties at Verizon.“Teaching law is different. I’m teach-ing people how to be a practicinglawyer which isn’t taught in lawschool.”
(Continued from page 5)
Sandra D. Thorn
Winter 2007-2008 BellTel Retiree 9
GOTLEIB & ASSOCIATES, LLCRETIREMENT PLANNING
WWW.INVEST2RETIRE.COM
We specialize in assisting Verizon/Bell Atlantic Retirees!
Securities offered through Securities America, Inc. Member NASD/SIPC and Advisory services offered through Securities Amer-ica Advisors, Inc. Leo A. Gotleib, Representative. Gotleib & Associates, LLC and Securities America, Inc are not affiliated. Gotleib& Associates, LLC and Securities America, Inc. are not endorsed or retained by nor affiliated with Verizon, IBEW or CWA. Gotleib& Associates, LLC is an independently owned company that specializes in retirement planning. 12/1/06
Are you worried about outlivingyour retirement savings?
Call us at 1-800-644-4204to schedule a second opinion
or visit us at www.invest2retire.com
WE ADMIRE AND SUPPORT THE PIONEERSbut ..
WE DO NOT RECEIVE FUNDS FROM THE PIONEERS OR VERIZONWe depend upon your financial support
The Pioneers and theAssociation of BellTel Retirees:
Two Different Retiree OrganizationsWe were pleased by the response to our September appeal, but were very
surprised to learn that a number of you still believe oouurr letters and newslet-ters are from The Pioneers, rather than the Association of BellTel Retirees.Although we have often explained our organization, and published our mis-sion statement in the newsletter, we will take this opportunity to once againsum up what we do for you, vs. what the Pioneers do.
Association of BellTel Retirees Inc.
• Governed by an all-volunteer board– over 9000 hours of volunteer timeeach year
• Our only source of funds is fromyou – our members
• Dedicated to protecting the pen-sions and healthcare of Verizonretirees
• Strategies include: 1. presenting shareowner proposals2. meeting with Verizon corporate
leaders;3. supporting healthcare legislation
to roll back your cost for health-care: HR1322 - through ProtectSeniors.Org
4. Quarterly newsletter to informmembers of our goals, accom-plishments, financial health, retireenews, and Pioneer events
5. Litigation, if and when necessary6. Speaking at Pioneer and other
group meetings, when invited
• Governed by volunteer board
• Supported financially by dues
from employees and fundraising
activities of the various Chapters
and Councils
• Also, the Verizon Foundation
and other telecommunications
foundations give operational
support Grants
• Dedicated to community volun-
teer projects, with special focus
on education
• Volunteer workers are retirees
or active employees from
telecommunications companies
organized in chapters across the
US and Canada
TelecomPioneers
ConcessionTelephone Service
We receive many calls from
retirees regarding their
concession telephone service.
The typical problem is that they
have lost all or part of their con-
cession service.
It is important for retirees and
active employees to understand a
few things about concession
service. First, concession service
is not applicable to all services. At
the time a service is ordered you
should ask if that service is cov-
ered by the plan. Second, there
has been a long-standing policy
that most package plans do not
receive the concession service
discount and no concession dis-
counts apply to packages that
combine local and long distance.
That is not to say that you
should not subscribe to a pack-
age plan. However, you should
do the math before you add prod-
ucts or change your telephone
service. Your business office rep-
resentative should be able to help
you compare what a total pack-
age plan costs – remembering
that discounts may not apply.
You can then choose the most
cost-effective way to order your
service.
Your business office number
can easily be found in the front
pages of your Verizon telephone
book as well as your monthly
telephone bill. Wells Fargo TPA
can also provide information
regarding your eligibility for con-
cession service. To reach Wells
Fargo TPA call at 1-800-898-3886.
Whatever happened to “you willnever have to pay for health care?”
Please keep fighting for us or elsethe people working now won’t getany pensions at all.
Margaret Terry, New City, NY
*****Sorry I’m behind in my dues. I’m
92 years young and a bit forgetful.I admire and support your efforts
to keep our pensions and all yourgood work. I like the newsletter,too. Don’t forget me.
Edith Martin, Cutler Bay, FL
*****Enclosed find a check … towards
our goal of $165,000.I retired almost 2 years ago at
age 55 from Verizon with 35 years.I would not have what I have
today if it wasn’t for Ma Bell and theUnion. I now look forward to beinga BellTel Retiree member for the rest
of my life. I feel it is a responsibilityto protect what we earned for our-selves, and future retirees.
Management or Craft, it’s notimportant now. The Association isour “Union” now, and I want yourvoice to stay loud and clear.
Thanks for all your hard work.Fred Schwarz, Port Ewen, NY
*****I already received my 2007 card.
After reading your recent article Ithought a little extra was in order. Ireally appreciate the work you do!
Rosalie Starahs,Paoli, PA
*****After reading the previous issue
of the BellTel Retiree and this latestone I decided to double my dona-tion for this year. I’m sorry I can’tmake it more because the greatwork you’re doing deserves it.
J. C., Hawthorne, NY
Member Mailbag(Continued from page 6)
Winter 2007-2008BellTel Retiree10
Paid for by ProtectSeniors.org
HELP US HELP YOU!Financial support is needed to help pass our law:
The Emergency Retiree Health Benefits Protection ActHR 1322
CONTRIBUTE TODAY!BE A GRASSROOTS VOLUNTEER!
Send contributions to:ProtectSeniors.Org, P.O. Box 476, Cold Spring Harbor, NY11724
Protect5eniors.Org is a 501(c)(4) nonprofit organization.Contributions are not tax-deductible
ProtectSeniors.OrgTel: 1-800-398-3044/WWW.PROTECTSENIORS.ORG
Parting Ways with NRLN
The Association of BellTelRetirees was one of the origi-nal founders of the National
Retiree Legislative Network in 2003.We did that because we realized thatafter having financed the drafting ofa bill, which is now called the Emer-gency Retiree Health Benefits Pro-tection Act (HR 1322), we neededhelp to get it passed.
The concept of inviting retireeorganizations from all parts of thecountry and from all industries tojoin together to lobby for a commoncause was a great idea. Unfortu-nately, it did not turn out the way wehad planned.
A number of problems devel-oped. First, there were not manyretiree organizations that wereorganized as activists. Rather, mostwere social in nature and frequentlywere supported financially by thecompany from which the folks
retired. Of those who were createdto perform an activist role, only avery few were large enough to cre-ate any critical mass.
Our organization and one or twoothers expended untold hourscoaching these small organizationson recruiting, fund raising and orga-nizational structure but, much toour disappointment, they did notgrow and prosper. As a result, a fewof the larger organizations were leftto finance the NRLN.
The final blow was when theNRLN moved HR 1322 the Emer-gency Retiree Health Benefits Pro-tection Act, to the back burner anddirected their efforts toward otherlegislative pursuits. Board membersof the Association of BellTel Retireestried to convince the NRLN leader-ship that the saving of our healthcarebenefits should be a top priority.When our efforts failed we had to
withdraw and seek another solu-tion.
That solution was to join Protect-Seniors.Org, a lobbying organiza-tion open to retirees of all compa-nies in all industries. This organiza-tion was founded by an Associationboard member. Two other Associa-tion leaders serve on the board aswell. ProtectSeniors.Org is dedicat-ed to one cause at this time – passing(HR 1322). After all, what issue ismore important than to provide thesame protections that exist underERISA for our pensions, to ourhealthcare benefits?
We hope that this has cleared upany confusion that you might haveconcerning the relationshipbetween, the Association of BellTelRetirees, ProtectSeniors.Org andNRLN. Should you need more infor-mation, We urge you to call, email orwrite to us.
Winter 2007-2008 BellTel Retiree 11
Third Quarter Earnings Looking Good
Verizon reported an increase inearnings in the company’s third
quarter: net income was listed at $4.2billion, up 19 percent from last year’snumbers. The company also report-ed its revenues as $23.8 billion in rev-enues, up by 5.8 percent.
Earnings and income improve-ments were attributed to the 1.6 mil-lion new wireless customers, bring-ing the total to 63.7 million, and the 1.3million new FiOS customers addedsince launching the service in 2005.
“It has taken a long time and cost alot of money for Verizon to get towhere they are today with their televi-sion and internet,” said Jeff Kagan, anindependent telecom analyst. “How-ever, now that they are beginning todeliver on the FiOS promise, the cus-tomers seem to be welcoming theoffering.”
Vonage and Verizon Settle Patent Suit
After a U.S. Court of Appeals for theFederal Circuit upheld the deci-
sion that Vonage infringed upon Veri-zon’s patents on Voice over InternetProtocol (VoIP) services, the two tele-com companies have settled the dis-pute. The terms, which are depend-ent upon the outcome of the Court ofAppeals decision on Vonage’s peti-tion for a rehearing for two of thethree patents in question, are as fol-lows:
If Vonage is granted a rehearing orthe injunction is vacated, Vonage willpay Verizon $80 million dollars.
If the courts uphold the originaldecisions, Vonage will have to payVerizon $117 million.
In the initial court decision, Von-age was also ordered to pay Verizon 5percent in royalties on all futureincome from the use of its patentedtechnology. “We’re pleased to put
this dispute behind us and believethis settlement is in the best interestsof Vonage and its customers,” saidSharon O’Leary, Vonage’s chief legalofficer.
Verizon Expands Service to Asia
On October 31, Verizon announcedthat it had received licenses to
offer telecom services to large busi-nesses in India.
The licenses, which allow Verizonto offer national and internationallong distance services, put the com-pany in direct competition withAT&T. The latter won similar licensesin India in 2006.
Verizon Business already has alicense to provide internet service inIndia.
Verizon Business News
MISSION STATEMENTThe Association of BellTel
Retirees Inc. is dedicated topromote the protection andenhancement of the pensionsand benefits for retirees andbeneficiaries of the companiesand subsidiaries that make upthe Verizon Corporation.
The Association will con-vince the company to properlycare for its thousands of dedi-cated retired employees.
The Association will con-duct activities designed to edu-cate elected federal, state andlocal representatives and pro-mote the passage of legislationwhich will protect and guaran-tee, rather than invade, ourhard-earned pension and ben-efits funds.
Association Board Member RobertRehm spoke on 9/20/07 at the
Nesconsett Pioneer meeting in St.James, NY. About 60 attendeesappeared to appreciate the Associa-tion’s efforts on their behalf andenjoyed a one hour talk that includedthe delivery of the 2007 Proxy presen-tation given at VZ Annual Sharehold-ers Meeting in Pittsburgh.
The Neconsett Pioneers are alwayslooking for new members; to jointhem contact Jack Malone at(631)499-1144.
*******
On October 3rd, Association presi-dent Bill Jones spoke at the Cae-
sar Rodney Life Member Club Fall Lun-cheon meeting in Georgetown, DE.
In attendance were about 70 veryattentive members. Also on hand dur-ing Mr. Jones’ talk was Laura Howard,a new Delaware resident and Associa-tion staff member.
Mr. Jones spoke about the recent,past and planned activities of theAssociation and updated those pres-ent on the legislative activities of Pro-tectSeniors.Org, a gressroots organi-zation that focuses on the passage ofH.R. 1322, the Emergency RetireeHealth Benefits Protection Act.
While there were very few ques-tions at the end of Mr. Jones’ talk, hewas approached by many of theattendees at the close of the meeting.Most were very complimentary of theAssociation’s work, while others hadproblems with which they neededadvice or help.
Mr. Jones found it to be a worth-while trip.
*******
Association Board Member MikeMcFadden organized what he
considered the Association’s bestblood drive to date on October 30th.“Our goal was 50 pints and weexceeded that by 14 to send the redCross 64 pints for distribution,” saidMr. McFadden.
Since April 2005, the Associationhas collected 411 pints of blood.
When broken down into blood prod-ucts this amount of blood has thepotential to help over 1200 patients inhospitals. “We are very proud of whatwe do,” says Mr. McFadden, “and it iseasy once you have run a couple ofdrives.”
Mr. McFadden adds that events likethe blood drive offer retirees andactive Verizon employees a chance toget together and see each other a fewtimes a year.
Anyone interested in starting ablood drive in their area can call Mikeat 856-767-1131. The Red Cross willgive you all the help that you need;contact them at 1-800-261-9222. “Itwill only cost you some time to helpbring the gift of life to someone,” saysMr. McFadden. “It could even be oneof your own.”
*******
On November 1, 2007, AssociationBoard Member Mike Kucklinca
spoke to a group of retirees in West
Hempstead, NY at a Pioneer meetingfor the Paumonok Chapter. Thirty-eight people were in attendance tohear Mr. Kucklinka speak for an houron the history and future of the Asso-ciation.
Comments from the attendeesincluded awe at the number of non-contributing members as reported inthe Fall 2007 BellTel Retiree. Retireespresent also voiced appreciation forthe number of volunteer hours put inby Association board members, andagreed with and applauded the Asso-ciation’s fight for promises not kept.
Mr. Kucklinka also took the time toask those in attendance to update theircontact information for future com-munications from the Association.
*******If you'd like a representative from
the Association to speak at your event,please contact the office at 631-367-3067, or via email at [email protected]
Winter 2007-2008BellTel Retiree12
RETIREE NEWS & NOTES
DID YOU ACCEPT THE BUY-OUT?MEET YOUR BROKER AT A SEMINAR?DO YOU OWN A VARIABLE ANNUITY?
IF YOU ANSWERED “YES” TO ANY OF THESE QUESTIONS , YOU MAY BE ENTITLED TO MONEY?
NO FEE UNLESS WE RECOVER MONEY FOR YOUSTOCKBROKER GAMBLE WITH YOUR 401(K) OR IRA?
CALL US TODAY!
TOLL FREE: 1-800-586-9652
ACTUAL RECOVERIES:
TIME ISRUNNING OUT!
$200,000 - RECOVERY FOR A CLIENT WHO PURCHASED A VARIABLE ANNUITY$175,000 - BELL TELL MEMBER WHO LOST MONEY AFTER TAKING THE BUY-OUT$80,000 - BELL TELL MEMBER WHO LOST MONEY AFTER MEETING BROKER AT A SEMINAR$30,000 - SETTLEMENT FOR RETIRED BELL TELL MEMBER
UPDATE 11/7/07 $85,000 SETTLEMENT FOR BELL TELL RETIREE WHO LOSTMONEY AFTER HIS BROKER INVESTED IN TECH STOCKS
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