Not good news for Verizon managers...

Employees who do not have 15 years of service with the additional 18 months of service added as of June 30, 2006, will not have any company subsidy for healthcare or life insurance. However, upon achieving retirement eligibility, they will have access to these plans at their own expense upon retirement.


No medical coverage after retirement.


Also...
Management Pension Plan
Verizon management employees will not earn pension benefits after June 30, 2006.
Employees will be entitled to the benefits they have earned as of June 30, 2006. Employees with 10 or more years of service as of Jan.1, 2002, will be entitled to the greater of the value of their cash balance account or the traditional highest average pay pension.
Additionally, for management employees earning pension benefits as of June 30, 2006, Verizon will enhance the pension benefit earned as of June 30, 2006--adding 18 months of additional pay credits to cash balance accounts and, if applicable, 18 months of service to the calculation of the highest average pay formula.
Management employees can grow into early retirement eligibility with Verizon after June 30, 2006, but the additional 18 months of service will not count for this purpose.
Beginning Jan. 1, 2006, new management employees will not earn pension benefits.

Message edited 12/6/2005 1:42:17 PM.

Re: Not good news for Verizon managers...

That's the way it goes with so many companies.. it's Bull Sh1t

The bargain in good faith, and then pull it away.

Did you know that is how 401ks came about? Originally 401ks were designed to be a way for upper management to save taxes. Companies figured they really didn't cost anything, so why not extend tax savings to all employees... eventually they were able to bait & switch- pull pensions and give 401ks in place. Pensions are guaranteed- 401ks are not (ask the enron people).

Of course, the Fed'l Government guarantees pensions- but will all the legacy airlines and possible big 3 auto makers going bankrupt and defaulting on their pension obligations, the fed'l government will not be able to back them all.

Plus- did you know that the high-end executives (of course) get to keep their golden parachutes. I read once that Rick Lazio (who ran against Hillary for the Senate) consulted for either polaroid or kodak (one of the two)- he wound up getting retirement benefits as if he worked there 15+ years, and yet the people who DID work there get practicially nothing (I think i'm thinking of Polaroid b/c the article said the woman wound up getting like $50 a month or something)....

We're going to have a lot of old people living in poverty. People that have worked hard and tried to do the right thing.

It's a shame... when they say the rich get richer- it is the truth.

I wish some politician would do something about this... it is so sad.

Re: Not good news for Verizon managers...

My company did something very similar with the Pension Plan. If you were under 30 years of age and did not have 10 years of service, you were not eligible for the Pension Plan and were put into a cash balance plan. The plans are significantly different. What s*cks about that is I was in the company 9 years 10 months and was almost 30 years. However, if a new employee was over the required age, they fell into the pension plan. I felt that it was reverse discrimination because it only affected 300 employees. There was nothing we could do about it. I guess this is where companies are justifying savings.

Re: Not good news for Verizon managers...

What's going on at Verizon? Are they laying people off? We think someone we know was laid off from there but aren't sure.

Re: Not good news for Verizon managers...

That s*cks Karissa. But, unfortunately, that's most companies now. My mom is 62 and she was grandfathered in because of how long she worked for her company but she is the only person I know, other than civil servants and government workers, that will retain health insurance after she retires. And it's not even full - they'll contribute the amount they contributed in 2001 to whatever it costs so she'll have to cover the rest. But it's still better than nothing, which is what most of us will get

Re: Not good news for Verizon managers...

Posted by Leeners

That s*cks Karissa. But, unfortunately, that's most companies now. My mom is 62 and she was grandfathered in because of how long she worked for her company but she is the only person I know, other than civil servants and government workers, that will retain health insurance after she retires. And it's not even full - they'll contribute the amount they contributed in 2001 to whatever it costs so she'll have to cover the rest. But it's still better than nothing, which is what most of us will get

Re: Not good news for Verizon managers...

I am not a manager! I always said no to the management position. I am union.

Re: Not good news for Verizon managers...

I'm so glad my DH stayed union too . DH's best friend recently switched to management and regrets it sooooo much but there's no going back!

Re: Not good news for Verizon managers...

this is a growing trend as healthcare becomes expensive, companies are starting to crunch numbers and do want to pay for it.

Re: Not good news for Verizon managers...

Posted by betty

I'm so glad my DH stayed union too . DH's best friend recently switched to management and regrets it sooooo much but there's no going back!