BELLTEL RETIREEFall 2006 Volume 39

The Official Newsletter for Retirees of Bell Atlantic, GTE, NYNEX, Verizon and Its SubsidiariesPaid for by contributions from Verizon retirees

10 Years of Service to the Verizon Retiree CommunityH 1996 H H 2006 H

By Representative John Tierney

After years of hard work, allAmericans deserve to retirewith the confidence that they

will be financially secure and haveaccess to high quality health care. Inall too many instances, companies arebreaking their promises to retirees,leaving individuals like you withouthealth care benefits that they werepromised upon retirement.

In fact, just over 30% of largeemployers offered health benefits totheir retirees, according to a 2004study by the Kaiser Family Founda-tion. In the 1980s, nearly 70% of thesefirms offered such benefits. In addi-tion, of the employers that do offercoverage, many have reduced theterms of coverage by increasing pre-miums, co-payments anddeductibles, resulting in a gradualerosion of employer-sponsored ben-efits. While retiree health care costsare rising rapidly, private-sector pen-sions usually do not keep pace.

Due to the lack ofstrong laws to protectAmericans in this area,Americans across thecountry are growingincreasingly concernedabout their retirementsecurity. To address thisissue, I am a proudauthor of the EEmmeerr--ggeennccyy RReettiirreeee HHeeaalltthhBBeenneeffiittss PPrrootteeccttiioonn AAcctt((HH..RR.. 11332222)), which seeksto ensure that compa-nies honor the commit-ments they make totheir retirees.

Although retireeskept their end of the bargain duringyears of hard work, the companieshave not held up theirs. H.R. 1322 willprevent companies from using loop-holes to renege on promises andjeopardize the life savings of peoplewho are forced to dip into their livingexpenses in order to make up for cutor cancelled health benefits.

We cannot allowcompanies to continuecutting retiree healthcare and threateningAmericans’ retirementsecurity. America hasto get back to its legacyof striving for opportu-nity, prosperity, securi-ty, fairness andaccountability for allcitizens.

In the 1938 addresson the third anniver-sary of the Social Secu-rity Act, PresidentFranklin Rooseveltdeclared: “There is still

today a frontier...that remains uncon-quered, an America unclaimed. This isthe great, the nationwide, frontier ofinsecurity, of human want and fear.This is the frontier - the America - wehave set ourselves to reclaim.”

In response, working together, weimplemented the Social Security

Retiree Health Care Cut to Increase Corporate Profits

Rep. John Tierney (D-MA)

According to the CWA, Insteadof bringing MCI into the exist-ing Enterprise Services Groups

at the company and using experi-enced union workers, Verizon has setup a non-union company, VerizonBusiness (VZB) to take on work fromMCI, while also quietly absorbingwork that has long been performedby its union members.

According to the union’sUnity@Verizon communications,many work and service orders thatwere previously performed by Veri-zon union workers have quietly beenswitched to this new non-union Veri-zon Business entity.

The CWA states that tech work andservice orders for pre-merger cus-tomers like University of Maryland,

Con Edison, andWashington Mutu-al Bank have beenshifted to the newentity, VZB. Theysay that in build-ings that contain both Verizon andMCI multiplexers, the new circuits areall going onto the VZB equipment.

The union points to new officebuildings for the New York Times andBank of America, all of which requiremultiple voice and data lines, havehad not a single service order thathave come to union service represen-tatives.

Another matter the CWA questionsis Verizon’s claim that its core com-puter systems and VZB’s systems areseparate, and core employers have no

access to VZB’ssystems and data.The union ques-tions this by not-ing that a Verizonunion technician

has had calls from VZB to check up onthat company’s trouble tickets.

The union has indicated that it ispursuing discussions with the com-pany as well as a review of possiblegrievances and other legal options.“We need to let the company knowthat we will not sit quietly by andwatch our work disappear,” accord-ing the CWA communication. It goeson to say, “We must stop Verizon’splan to wall off good union wagesand benefits and destroy unionjobs.”

CWA Spotlights Shifting of Union Work to New MCI Affiliated Non-Union Shop(Continued on page 7)

Ihave good news and good news.Which do you want to hear first?OK, we are really excited about the

formation of our new organization,ProtectSeniors.Org. Our office inWashington is set up; our Chief Lob-byist is in place and is already work-ing the halls of Congress; we havereceived our 501 c 4 tax status andmany retiree supporters have madecontributions to get us started.

Further, we have formed a politicalaction committee called ProtectSe-niors.Org Political Action and we arepresently collecting contributionsthat will be used to support the elec-tion campaigns of Members of Con-gress who have or will support ourbill.

We are in the process of conduct-ing a nation-wide direct mail solicita-tion drive that is aimed at attractingfolks from all over the country, fromall industries to join us in this impor-tant journey. We are putting the fin-ishing touches on a five-state presscampaign to gain name recognition.

We have created a mass e-mail sys-tem to communicate with our mem-bership and enlist their help in thisimportant effort. We have also sub-scribed to CapWiz, a user-friendlysystem that will deliver your mes-sages to your Representatives inWashington.

We have worked hard for over fiveyears to get the Emergency RetireeHealth Benefits Protection Act (HR1322) through Congress. While wehave had great support from Democ-rats, we have yet to have a Republicanco sponsor our bill. We hope tochange that shortly.

Fall 2006BellTel Retiree2

President’s Messageby C. William Jones

This new organization, formed bythe Association of BellTel RetireesInc., is the key, we believe, to moveour bill forward. However, we can-not do it without your help. Here iswhat you can do:

If you have not joined Protect-Seniors.Org, please do so. (www.ProtectSeniors.Org).

If you have joined, please make acontribution to ProtectSeniors.OrgPolitical Action.

Get your friends, neighbors, rela-tives and co-workers to do the same.

Volunteer to join our GrassrootsLegislative Network and becomepart of the solution to our healthcareprotection effort.

Call the ProtectSeniors.Org officeif you have questions or would liketo help (1-800-398-3044).

Thank you for your continuedsupport. You are a wonderful groupof dedicated telephone people whohave given your lives to serve thepublic. It is time that you give some-thing back to yourself and your co-workers to preserve your financialsecurity in retirement.

Verizon Communications is pay-ing $49 million to more than12,300 retirees and current

employees in 13 states to settle gov-ernment allegations that it discrimi-nates against pregnant women. Thesettlement was the largest of its kind inpregnancy related discriminationsuits, according to the United StatesEqual Employment OpportunitiesCommission (EEOC).

The company first reached thisagreement in 2002 when the EEOC,which along with two labor unions,accused Verizon and its predecessorcompanies for failing to count the timespent by employees on maternity andparental leave towards pensions.

The agreement covers womenemployed by Bell Atlantic or NYNEXat any time since January 8, 1994, whotook pregnancy or maternity-relatedleave of absence between July 12,1965 and April 28, 1979 or a leave ofabsence to care for a newborn child

between July 12, 1965 and December31, 1983.

The settlement benefits effectedemployees who worked in: Connecti-cut, Delaware, Maine, Maryland, Mass-achusetts, New Hampshire, NewYork, New Jersey, Pennsylvania,Rhode Island, Vermont, Virginia, andThe District of Columbia.

____________

Company Surpasses 100th Municipal Market for Its

Broadcast TV Services:In July Verizon won its 100th

municipal franchise to offer videoand television services in CollegevilleBorough, Pennsylvania, SkippackTownship, Pennsylvania and Camar-illo California bringing the total num-ber of areas served to 102 nationwideas of our news deadline. Fiber OpticService (FiOS) approvals give thecompany the right to open up newmarkets for corporate and consumer

video sales.The company has also signed a deal

to carry sports programming, allow-ing it to compete with old line cabletelevision operators in this medium.Verizon now carries SportsNet NewYork, which airs New York Mets andNew York Jets games, as well as avideo-on-demand deal with CBS, NBCUniversal, Discovery Networks andothers.

______________

Verizon Wireless Inching Up on Cingular in Wireless:

Verizon Wireless announced thatits wireless customer base grew by 1.8million consumers in the 2nd quarteras opposed to Cingular Wirelesswhose customer base grew by just 1.5million new subscribers. In the racefor first, Verizon has 51.3 million wire-less subscribers, behind Cingular inthe lead with more than 54 millionsubscribers.

Verizon Pays $49 Million to Settle Pregnancy Discrimination Suit

Pension loss victims from acrossthe nation and from a variety ofindustries appeared earlier this

year in Washington, D.C. in a meetingconvened by the Claude PepperFoundation.

The event titled “DisintegratingPensions National Crisis: Call toAction” included Thomas Spulak,chair of Pepper Foundation and for-mer Staff Director of House of RulesCommittee and Association of BellTelRetiree President C. William Jones par-ticipated.

A panel of pension loss victimsincluded retirees and former workersfrom Enron, IBM, AT&T, and Verizon.

Also taking part in the event werepolicy experts from the AFL-CIO, Pen-sion Rights Center, Ernst and Young,Ameriprise Financial Services andUniversity of Florida.

Victims told heart-wrenching per-sonal experiences of impact of lossesin their expected pensions on theirlives and families. During the eventpanelists proposed changes that areneeded to guarantee that workers areprotected from losing earned benefits.

According to the foundation, thenational pension crisis is “threatening

the lifeblood of nearly all Americanseniors and their families, as well asyounger workers.” Among the statis-tics they cite, is that out of 142.6 mil-lion active American workers only 101million have a private pension plan

and hundreds of major companiesincluding: United Airlines, GM, IBM,Verizon, Sears, Hewlett Packard,Polaroid, ATT and Enron havereduced their guaranteed retirementplans.

Fall 2006 BellTel Retiree 3

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“Disintegrating Pensions” Topic of Concern

According to the Rocky Moun-tain News, Qwest Communi-cations agreed to pay former

U.S. West CEO, Sol Trujillo a $72 mil-lion golden parachute only one daybefore the merger of the two compa-nies, which occurred in June of 2000.

The previously undisclosed exec-utive perk was uncovered by retireeadvocate and attorney CurtisKennedy, who was keynote speakerat the Association of BellTel Retirees10th annual membership meeting inMay. Mr. Kennedy serves as an attor-ney for both the Association of U SWest Retirees and Association of Bell-Tel Retirees.

Mr. Kennedy characterized the pay-out to the former exec as “outrageous.”

The golden severance packageincluded a $5.5 million dollar alloca-tion to allow him use of the compa-ny’s corporate jet for 3 1/2 years afterleaving the company’s employment.

If he had stayed with the company,Mr. Trujillo’s four-year employmentretention package would have beenworth $48 million. Amazingly, byleaving the company he nearly dou-bled his payout overnight.

Mr. Trujillo is now chief executiveof Telsta and Australian Communica-tion giant.

Lynn Turner a former chiefaccountant with the Securities andExchange Commission, now current-ly research director of the sharehold-er advisory group Glass Lewis & Co.,

said the Trujillo arrangement is anoth-er example of why changes in execu-tive pay disclosure are warranted.

“One must seriously question whatvalue or benefit was provided toinvestors by a $72 million paymentfor doing nothing but walking away.”Turner said. Trujillo worked with U.S.West for 26 years, including two asC.E.O.

The SEC approved new rules inJuly that require additional executivecompensation disclosure.

The $72 million that Trujilloreceived included a $36.9 million feebecause the company changed man-agement control; a $10 million sign-ing agreement; $13.7 million pension

US West CEO Gets $72 Million Golden ParachuteMillions Go Undisclosed for Years Until Attorney, Retained by US West & BellTel Retirees, Uncovers Agreements

(Continued on page 8)

Fall 2006BellTel Retiree4

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ASSOCIATION OF BELLTEL RETIREES INC.PO BOX 61, Glen Head, NY 11545-0061

Yes! I want to join the Association of BellTel Retirees Inc. I support you in your fightto protect the pension and benefit rights of both craft and management retirees andactive employees. Enclosed is my tax-deductible contribution of:Active Employee Member* o $75 o $50 o $36.50‡ o $25 or Other $______

* All names are kept strictly confidential ‡ Only 10¢ a dayThe Association of BellTel Retirees is a 501 (c) (3) IRS • Tax-Exempt Corporation representing retirees and active employees of Verizon, all of its subsidiaries and all of the companies that were combined to form Verizon. 9/06

Retiree Member* o $75 o $50 o $36.50‡ o $25 o $20 or Other $_____

Check Enclosed o or Charge contribution to my o Visa o MasterCardCredit Card Acct.# _______________________________________Exp. Date ______Signature______________________________________________________________Name ______________________________________________________________________________Address __________________________________________E-mail_______________________________

City/State/Zip Code: ___________________________________Telephone:__________________________

o Craft o Management I retired or expect to retire in (year) _____ from (Co.) _________________

Dorothy Waibel met her futurehusband, Roy Waibel on whatshe recalls as a great blind

date. At the time, Dorothy was innursing school and a few monthsafter their date, Roy enlisted in theU.S. Navy.

In February 1943, he was assignedto a destroyer escort ship in theAtlantic Ocean that traveled from theU.S. to South America. He was thentransferred to a troop transport travel-ing from France to the Pacific Theaterin the Philippine Islands. Later in thewar, he was assigned to the “Brule”and the “Gen. Omar Bundy” trans-porting troops back and forth to theWest Coast and Japan.

Like many young couples in thosetimes, World War II and the demandsof nursing school upon Dorothyallowed little time for the two to see

each other. So in order to communi-cate, they wrote letters and it wasn’tuntil the end of the war that theywould be reunited.

In 1945, Roy Waibel was dis-charged from the Navy after nearlythree years of service and once home,Roy and Dorothy married at theElsmere Presbyterian Church inWilmington, Delaware. When Dia-mond State Telephone Companyoffered Roy a job as an installer, earn-ing $36.00 a week in March of 1951 hejumped at the opportunity to have acareer with the telephone company.

Dorothy recalls that as a registerednurse she earned the same salary.With good jobs and security the cou-ple could now build upon theirdream of having a family.

In November of 1952, Roy andDorothy welcomed their first son

who was born with a heart conditionand passed away after just fivemonths of life. In 1954 the couplewas blessed with the birth of a sec-ond son, David, and in 1958 a thirdson, Paul, followed. In between, theysettled in a new home just outsideWilmington, Delaware.

At Diamond State Telephone Roybecame very active in the localunion, rising to position of Vice Pres-ident.

The couple’s dedication was alsoto their family. When their boys wereold enough to join the Boy Scouts,Roy became a Scout Master. Heplanned hikes in the PennsylvaniaMountains and a 50 mile hike fromthe Maryland state border to New Jer-sey. Roy continued as Scout Masterfor Troop 43 for 15 years.

Looking back over careers thatspan decades with the company,think about of all the blizzards,nor’easters, hurricanes or timeswhen a project deadline kept youaway from the family. In those timesit has been these spouses who heldthings together at home as we werefocused on the Spirit of Service.

After nearly thirty years with thecompany, Roy retired in March of1981 as a PBX installer. He and, byextension, Dorothy had givendecades of their lives to the companyand the union. On December 13,2005 Roy, a member of the Associa-tion of BellTel Retirees, passed awayat age 81.

Recently Dorothy wrote to theAssociation to tell of their life togeth-er.

Among the more than 111,500members of the Association aremany, many surviving spouses, justlike Dorothy Waibel. The Associa-tion recognizes the vital importanceof protecting the benefits and rightsof our surviving spouses and not onlyVerizon retirees.

We often get calls from Verizonsurviving spouses after the passing oftheir loved one seeking guidanceand letting us know that they wouldlike to continue receiving the BellTelRetiree newsletter or continue to

Surviving Spouse Offers Thanks in Telling Her Life Story

(Continued on page 7)

Fall 2006 BellTel Retiree 5

By Jim Chumley

Iheard from the Escalation Com-mittee at Verizon regarding myparticular concerns with rising

contributory premiums (nay, sky-rocketing) for retiree healthcare cov-erage.

I was told that basically, Verizonnegotiates every year with the varioushealthcare providers. A provider’scharge for coverage may vary loca-tion-to-location in part, based on thenumber of retirees/employers whowill be under the respectiveprovider’s coverage umbrella.

A large number of folks covered bya provider’s plan will provide a largerbase over which Verizon can spreadthe cost of coverage. A smaller clusterwill cost more per unit to cover. Per-haps this is one reason why the pre-mium costs are so varied around thecountry, zip code by zip code.

Florida, for example, has signifi-cantly lower rates for coverage thandoes Texas. Austin has higher premi-um rates than does the Dallas area.

Secondly, Verizon/GTE, uses a sys-tem to determine a monetary capbased on the number of the individ-ual’s service years. That percentage,or cap, limits the benefit coverageeach employee may receive, with 29years being a breakpoint betweenlower and higher amount of companycontribution. Thus, for those whoretired before and after 29 years, thereare different caps. This contributes tothe reason for further variationsacross the retiree population.

In January 2006 I originated myquest for answers to the rising retireecontributory healthcare premiums.At the time, Cigna (in my case) told meto call Verizon. Now that Verizon hasspoken, the finger points back toCigna, or any of the healthcare

providers that have held out for ever-increasing revenues.

Wouldn’t it seem that Verizonshould have sufficient muscle tonegotiate better rates for its retirees’healthcare coverage? The pillars ofpower have not done so. Instead,they adhere to pricing formulated fif-teen or more years ago (per Escala-tion Committee).

The spokesperson for the VerizonEscalation Committee told me that agreat number of complaints havebeen filed with Verizon regarding thissubject.

Thanks for the concern and assis-tance the Association of BellTelRetirees has provided on this matter. Iam encouraged by your enthusiasm.Please continue what you are doing toease the financial burdens beingplaced on us by these healthcare issues.

Jim Chumley is a retiree from GTEwho resides in Austin, Texas.

Healthcare Cost Escalation for Pre-Medicare Retirees

Help Us To Keep You Informed

While our newsletter is our pri-mary communications vehicle, e-mail and our web site are particularlyvaluable to get information outquickly. Please give us your e-mailaddress if you have not done so andbe sure to notify us when it changes.

We have occasions when an e-mailis the only way we can get informa-tion to you in a timely manner.You can send it to us at: association@belltelretirees.org.

Thanks for your cooperation.

Since its start up, ProtectSeniors.Orghas several immediate accom-plishments and is building on that

effort every day. The organization wasgranted its official 501 ( C ) ( 4 ) tax sta-tus as a recognized non-profit organi-zation. It has also taken steps to opena separate political action committee(PAC) which enables the group to sup-port the campaigns of elected officialswho stand behind pro-retiree legisla-tion in Washington, D.C.

As we go to press leaders and volun-teers from ProtectSeniors.Org havebeen working the halls of Congress toseek Republican sponsorship of theEmergency Retiree Health ProtectionAct (HR1322). The organization is alsoworking on an upcoming town hallmeeting somewhere in New Englandthat would include an opportunity forcandid discussion between retireesand Members of Congress.

On the membership front we havesome good news. In just the first 100days following the announcement ofProtectSeniors.Org’s establishment,more than 29,000 signed up for mem-bership and 400 donated to the PoliticalAction arm, supporting the cause ofretirees on Capitol Hill.

We need you to join, if you have not

already done so. We encourage you torecruit every retiree in your neighbor-hood, place of worship and retiree andsenior citizen family and friends to jointo make this grassroots effort in Wash-ington, D.C. take root and grow in all 50states.

If America’s retirees have enoughvotes to elect our own President anddetermine the outcome of every Con-gressional race in the United States,why is it that corporations and drugcompanies are successfully able to passanti-retiree legislation time and again?How is it that our elected officials areessentially allowed to dress up a pigand put lipstick on it and tell America’ssenior citizens and retirees that this isgood for you so accept it? All the whilethey know it is to the detriment of theretiree class in this nation.

ProtectSeniors.Org is not just forretirees from the telephone companyor Verizon, but retirees from everycompany and every industry in Ameri-ca. It is for those who were promisedlifetime health coverage – that was paidfor in our working years by acceptinglower salaries – and now find that cov-erage being diminished or eliminated.

This has already happened to mil-lions of American retirees withoutrecourse and now that the judicial sys-tem has ruled against retirees and infavor of the corporations in their desireto take these benefits away fromretirees, our only road to fix the prob-lem now lies with influencing changeto the laws of the land. HR1322 is thebill that, when passed into law, will pro-tect America’s retirees from wholesaleloss of their earned healthcare benefitsand protections.

We ask you all to join and play a rolein growing ProtectSeniors.Org’s mem-ber base; ask friends to send in a dona-tion to ProtectSeniors.Org. Have themsign up to play a part in our growingnational grass roots network whichhopes to have leaders in every Con-gressional District in the 50 states.

The protection of your benefits isworth it so take action today to getinvolved. Member and recruitmentbrochures are available upon requestfor distribution in your community.For more information go to www.ProtectSeniors.Org or call 202-434-8193.

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Fall 2006BellTel Retiree6

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ProtectSeniors.Org Growing in Washington, D.C.

Here Is How To Sign Up to ProtectSeniors.Org

___________________________________________________________________Name___________________________________________________________________Address___________________________________________________________________

___________________________________________________________________Email Phone

Suggested Contribution Amount o $100 o $75 o $50 o $25 o $10 Method of Payment o Check o Visa o MasterCard

_____________/____________/___________/____________Credit Card #

________________Exp. Date Three digit security code:_______

___________________________________________________________________Signature

o I would like to be contacted about volunteer opportunities with ProtectSeniors.Org

Make checks payable to ProtectSeniors.Org Donations are not tax deductible

ProtectSeniors.Org601 Pennsylvania Avenue, NW, • Suite 900 South Building Washington, DC 20004

Phone: (202) 434-8193 • E-mail: paul@protectseniors.org • Website: www.protectseniors.org

support our efforts to communicateon behalf of retirees and get vital leg-islation passed in Washington, D.C.

When we think about the protec-tion of the pensions and benefits weworked so hard to earn – and why wevolunteer our time in retirement tocarry out the mission of the Associa-tion – the answer remains “The Spiritof Service” as Angus McDonaldwould have espoused or the givingback to community that Pioneeringhas shown us.

As Retirees we must always be cog-nizant of the obligation we have to bethere for our fellow retirees and theirsurviving spouses.

This past April 20, Dorothy and

Roy would have celebrated their 60th

wedding anniversary. As Dorothyexpressed, instead she will be eter-nally grateful for the 59 years and 8months they spent together as hus-band and wife.

It is reading heartfelt letters like

Fall 2006 BellTel Retiree 7

ATTENTIONVERIZON EMPLOYEES

Joshua A. MazerVice President-Investments2661 Riva Road, Suite 101, Annapolis, MD 214011 (800) 766-2240 • (410) 224-0020In serving you, we generally act as a broker-dealer, but may act as an investment adviser for certain accountsfor which we are appointed as investment adviser, and our obligations will vary with the role we play. Unless weotherwise specifically indicate in writing, we are acting only as a broker-dealer. Please consult Important Infor-mation About Your Relationship with A.G. Edwards on agedwards.com for a discussion of the difference betweenour brokerage and advisory services. 2006 A.G. Edwards & Sons, Inc. • Member SIPC

The Wrong Decision About Your Retirement Plan Assets Could Cost YouIf you’re receiving a retirement pension or lump sum distribution, fromVerizon or any other company, your alternatives may be baffling.Take the first step toward making the right financial decisions. Calltoday for your free copy of our “Managing Your Retirement Plan Distri-butions” report.A.G. Edwards is not endorsed by or affiliated with Verizon.

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program, the G.I. Bill and unemploy-ment insurance. Employers provid-ed health care and retirement bene-fits. Later, Social Security was dra-matically expanded under the Eisen-hower Administration to include dis-ability insurance and, later still,Medicare and Medicaid were estab-lished to protect Americans.

As we addressed American’s senseof insecurity in the 1930s, and yearsfollowing, we need to address theproblem we face today with compa-nies cutting back on retiree healthcare and pension benefits. I ampleased to see that retirees are not sit-ting back and allowing corporateAmerica to continue to raid theirhealth benefits.

HH..RR.. 11332222 wwoouulldd ssttoopp pprrooffiittaabblleeccoommppaanniieess ffrroomm uunnffaaiirrllyy ccuuttttiinngg tthheehhaarrdd--eeaarrnneedd hheeaalltthh bbeenneeffiittss ooffrreettiirreeeess.. Further, it would:

Prohibit group health plans frommaking post-retirement reductions inretiree benefits;

Require plans to adopt provisionsbarring post-retirement cuts in retireehealth benefits;

Require employers to restore ben-efits reduced after retirement;

Provide an exemption for employ-ers who are unable to restore benefitsbecause they would experience sub-stantial business hardship, as deter-mined by the Secretary of Labor; and

Create a loan guarantee programto assist employers in restoringretiree health benefits.

We must do all that we can to pre-vent workers’ hard-earned retirementbenefits from being reduced or elimi-nated and to protect the retirementsecurity of thousands of employees,retirees and their families. With yourhelp, I will continue to fight this fight.

_______________________

Representative John Tierney is aMember of the United States Congressrepresenting the 6th CongressionalDistrict in Massachusetts and is theauthor and sponsor of HR 1322. Con-gressman Tierney serves on theHouse committee on Education andThe Workforce which has jurisdictionover pension and benefit legislationin the United States.

Retiree Health Care Cut to Increase Corporate Profits(Continued from page 1)

those from members like DorothyWaibel that reinforce the importanceof the mission of this retiree organi-zation to continue its fight for theprotection of the pensions and bene-fits for all of our retirees, futureretirees and surviving spouses.

Surviving Spouse Offers Thanks in Telling Her Life Story (Continued from page 4)

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In October a ClintEastwood andSteven Spielberg

film, Flag of Our Fathersis set to be releasedtelling the story of the sixmen who raised theAmerican flag at the Bat-tle of Iwo Jima, creatingone of the most viewedphotos in history.

A member of theAssociation of BellTelRetirees was recruited toplay a small but histori-cally accurate part in thefilm, as the White Houseteletype operator.

In two key scenes of the movie, a

U.S. Army TG-7B tele-type and a U.S. ArmyTXC-1 FacsimileMachine are beingused by the RooseveltWhite House. Theoperator of themachines in themovie is Don RobertHouse, an activemember of the Asso-ciation and a retireefrom Ameritech, nowa part of AT&T.

It was last Octoberwhen Don arrived inHollywood for two

days of filming on Sound Stage 2 at theold Goldwyn Studios. Once on set,

BellTel Retiree Appears in Clint Eastwood & Steven Spielberg Movie

Verizon Communications Inchas proposed a spin-off of itsYellow Pages publishing oper-

ations and its on-line directory:SuperPages.com.

In a Form 10 registration filed withthe Securities and Exchange Commis-sion (SEC), the company provideddetails about its proposal to create anew independent publicly-tradedcompany. Form 10 is an official regula-tory request by a company or entity toregister stock with the SEC and to belisted on the national stock exchange.It also informs potential investorsabout business financial statementsand possible risk factors. A spin-offwould be subject of final approval bythe Verizon Board of Directors.

At our news deadline, two privateequity firms are reportedly preparinga bid for Verizon Yellow Pages: Provi-

dence Equity Partners Inc. of Provi-dence, RI, and Boston’s Thomas H.Lee Partners LP.

It is not clear at this point where thenewly proposed company would beheadquartered. The present companyis headquartered in Dallas, with 7,100employees located throughout thecountry.

Though there are many detailsrelated to this proposed spin off thatstill need to be resolved, some keypoints are maintaining the currentbenefits level for both active andretired employees.

Verizon Information Services(Yellow Pages) is presently in whatis called a “quiet period”, which willlast from now until after the spin-off iscompleted and this limits the amountof information that can be shared withemployees.

Verizon Yellow Page Spin-off in the Works

payment; $5.5 million airplane useallowance; $2 million for him to rentnew personal or professional officespace; and a variety of perks includ-ing $943,441 in club memberships;$100,000 limousine service; $13,000to attend the World Economic Forumand some $1.5-$2 million in stockoptions.

The Association of BellTelRetirees has waged numerous proxyshareowner proxy campaignsagainst its own former employer Ver-izon Communications — winning onmultiple occasions – in an attempt tohalt overly generous payouts to topexecutives in the form of compensa-tion, benefits, bonus stock optionsand golden parachutes.

Golden Parachute(Continued from page 3)

House was given a 1940’s style hair-cut, had his goatee shaved, his mod-ern era glasses were confiscated andhe was dressed in attire befitting theera and his role at the White House.

In the past Don has provided vin-tage machines for films, but this wasthe first time getting face time in amajor motion picture.

In retirement, Don is Curator of the non-profit North American Data Communications Museum(www.nadcomm.com). The museumcollects, displays and keeps theequipment which powered the com-munications revolutions of the twen-tieth century, from telegraphy to digi-tal telephony operational. The organ-ization maintains everything from theteletype to modem technology.

Don’s insights and knowledge ofthis machinery, and its use is whatbrought him together with the pro-ducers.

Back on the White House set for hisbig moment, Don was seated next toa secretary’s desk, equipped with amodel 15 (TG-7B) teletype, where heexplained to Director, Clint Eastwoodthe format of the machine and its mes-sages and how it might have been uti-lized at the time to communicate mili-tary messages.

BellTel Member Don RobertHouse on set of movie FlagOf Our Fathers.

On July 28th the Pension Pro-tection Act of 2006 was pass-es in the House of Represen-

tatives. On August 3rd the bill passedin the Senate.

This measure, as it stands now onCapitol Hill, would affect more than44 million people relying on pensionplans and more individuals who aresaving for retirement through IRAsand 401 (k) plans.

In what is considered to be anunconventional move, the House ofRepresentatives took out a part of thePension bill that would have extendedfavorable tax breaks and attached it tothe Estate Tax and Extension of TaxRelief Act of 2006, calling for changesto Estate Tax and minimum wage.

The Pension bill consists of a vari-ety of provisions meant to strengthenthe funding rules for defined benefitpension plans. Tightening fundingrequirements, ensuring employersare making greater contributions totheir pension funds, will secure theirsolvency and avoiding potentialmulti-billion dollar tax payer bailoutof the Federal Pension Benefit Guar-anty Corporation (PBGC).

Under the bill, company’s pensionplans will have to be 100-percentfunded and if not, they will berequired to be fully funded withinseven years.

If employers are not in compli-ance, the bill has restrictions on howthey can fund their plans.

Those firms that are below 80-per-cent funded are prohibited fromusing credit balances for funding ormaking any new promises of bene-fits. Plans that are less than 60-per-cent funded also will be subject torestrictions.

The bill also contains penalties foremployers by prohibiting companiesfrom offering special pensions toexecutives if their general employeepension plan is at risk or the compa-ny is in bankruptcy. It also providesadded assurances to taxpayers thatthey won’t be left responsible forpaying pension promises by institut-ing a termination premium of $1,250per participant if a plan sponsor ter-minates an unfunded pension plan.In the event of bankruptcy, the for-

mer plan sponsor must pay this afterthe company emerges from bank-ruptcy.

The bill will also provide greaterlegal certainty to cash balance plans,including the provision of a safe har-bor rule for testing these types ofplans for age discrimination.

The bill also addresses retirementsavings held in IRAs and 401 (k)s.The bill encourages workers to saveby allowing companies to automati-cally enroll employees into 401 (k)plans.

Major Provisions of the Pension Protection Bill:

• Requires employers withdefined-benefit plans to make suffi-cient contributions to meet a 100 per-cent funding target and erase fundingshortfalls over seven years.

• Forces employers with “at-risk”plans to make accelerated contribu-tions. Under one scenario, a plan isdeemed at-risk if it falls below 70 per-cent funded status using assumptionsthat employees take the most expen-sive benefits and retire at the earliestpossible date.

• Changes the interest rate modelused for measuring a company’s pen-sion liabilities.

• Prohibits employers and unionsfrom increasing benefits if a plan isless than 80 percent funded, unless

the benefits are paid for immediately. • Restricts the use of deferred exec-

utive compensation arrangements foremployers with severely underfund-ed pension plans.

• Ends the legal uncertainty sur-rounding cash balance pension plansand establishes a simple age discrimi-nation standard for all defined-benefitplans.

• Bars companies from forcingemployees to invest any of their ownretirement savings contributions incompany stock.

• Permits qualified financial com-panies to offer face-to-face invest-ment advice to help employees man-age 401(k) and other retirementoptions. Those companies would berequired to base recommendationson employer-sponsored plans suchas 401(k)s on a certified computermodel.

• Makes permanent provisions in a2001 tax cut law that raised annualcontribution limits for IRAs.

• Gives taxpayers the option ofdepositing a portion of their federaltax refund directly into an IRA.

• Allows employers to offer auto-matic enrollment in employer-spon-sored defined contribution pensionplans such as 401(k)s.

• Allows employers with definedbenefit pension plans that are morethan 120 percent funded to use assetsto fund retiree health benefits.

Fall 2006 BellTel Retiree

Recover Investment Losses!• Pension Buy-Out funds invested & lost?• Stockbrokers mismanaged your money?• Let me help you!

(Cases on contingency basis only)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

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Pension Protection Rules Up For Consideration on Capitol Hill

9

Fall 2006BellTel Retiree10

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: association@belltelretirees.org Hotline: (800) 261-9222

A 501 C3 IRS tax-exempt corporation Circulation Exceeds 111,500

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. Kucklinca,Executive 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) 225-6497Joanne Jacobsen, Director (941) 493-7874

John A. Parente, Vice PresidentMembership (518) 372-0526

Joseph A. Ristuccia, Vice PresidentGovernment Relations (631) 765-1111

Thomas J. Sisti, DirectorUnion Relations (201) 794-6494

Patricia Trent Wells, Director(212) 535-6859

Louis Miano, Director Emeritus(781) 444-8080

Association of BellTell Retirees Inc.

Member Mailbag

Dear Association,My wife and I, both retirees from

Bell Atlantic, NJ, just finished readingthe summer 2006 issue of BellRetirees. We couldn’t help but com-ment that it was one of the mostinformative that we have received.Especially so was your message con-cerning the need for three organiza-tions.

A short time ago we received oursolicitation to help support the newlyorganized PSO. As retirees, we havebudget constraints and cannot alwaysdonate to the many, many organiza-tions seeking financial aid, so thesolicitation was set aside.

After reading your message anddiscussing it, we decided that wecouldn’t afford Not to contribute. Forshould our current pension and bene-fits be diminished, we wouldn’t beable to donate to any charitableorganization. We would, more than

likely, move from the donor side tothe needy side. The need for strengthin numbers was very apparent.Thanks again for the timely message.Rest assured all three organizationswill be on our donation list.

Jacqueline & Bernard SeekoHackettstown, NJ,

* * *Dear Association, As a retired craft member, I con-

tributed $25 for my membership.However a “Member Mailbag” (Sum-mer 2006 Edition) convinced me thatI should do better. Enclosed pleaseaccept my additional check for $25 tohelp the cause. Mr. German’s messagereally struck home.

Richard ShieldsRetired Switchman, Bell of PA

Pittsburg, PA* * *

EEDDIITTOORRSS NNOOTTEE:: After receiving multiple reader

comments we have decided to reprinta letter submitted by C&P Retiree Roy

C. German:Dear Association,I believe my last year’s contribu-

tion was $100.00. While I was consid-ering whether or not I could affordthat amount again this year it came tome that I cannot afford to lose my pre-scription benefit plan and end up inthat insane Federal Medicare D planor lose my supplemental health insur-ance either. The association may notbe able to stop Verizon but you arethe only thing standing in their way. Itherefore have increased my contri-butions by 50 percent. Keep swing-ing at ‘em.

Roy C. GermanDistrict Manager (retired)

C&P TelephonePolk City, Florida

Members, We Need Members!

While we have a very large membership at this time, we can neverhave too many. Our success in carrying out our mission to protectand enhance retiree pension and benefits is dependent upon the

power of our people. The more members we have, the greater our power.That is true when dealing with our former employer as well as when we areworking the halls of Congress.

Do us, and yourself, a big favor; please recruit two additional members forthe Association. Help us reach all of Verizon’s retirees in order to maximize ourinfluence. And, don’t forget, we encourage active employees to join as well.

Just send us their names, addresses, telephone numbers and e-mailaddresses and we will take care of the rest. You can use: telephone (1-800-261-9222), e-mail (association@belltelretirees.org) or US mail ( P.O. Box 33,Cold Spring Harbor, NY 11724).

OOvveerr 1133,,000000 PPiioonneeeerrssEExxppeecctteedd aatt VViirrggiinniiaa

FFaammiillyy GGaatthheerriinngg::The Pioneers Old Dominion Chap-

ter will hold their 27th annual FamilyFun Day on Sunday, October 1, 2006at Kings Dominion Amusement Parkin Richmond, VA.

The park is closed to the public forthis gathering and only those associat-ed with the Pioneers are admitted.Last year more than 13,000 friends andfamily of the Pioneers joined for thisday of fun and activities. Bring yourchildren and grandchildren, as thepark will be at their complete dispos-al from 10am to 8pm. All Pioneers andAssociation members, family andfriends are invited to participate.

Discounted tickets are $20.00 perperson. An optional full picnic lunchincluding food, beverage and icecream is also available for $13.50 per

person for those ages 7 and up; and$7.95 for attendees ages 3-6.

For more information contactCarol Warburton 757-489-8948; orEmail: sissygirlcarol1@aol.com orinformation can be found online atwww.verizonvirginiapioneers.org

* * * *Association Chairman Jack Bren-

nan spoke before two Pioneer LifeMember groups in New Jersey inJune. Jack joined with members ofthe Hack-Eng-Hud Life MemberGroup on June 13 and the followingday joined retirees from the Trenton-Burlington Member Group. Eachgroup had an impressive 60-65 mem-bers in attendance and led a lively dis-cussion about the Association’s annu-al proxy campaign, questions aboutthe Verizon retiree death benefit; theimportance of the recent formation ofnew lobbying organization calledProtectSeniors.Org and how it isworking to support the EmergencyRetiree Health Benefits Protection Act(HR1322) on Capitol Hill.

* * * *Retirees from upstate New York

recently gathered in Syracuse for theEmpire Federal Telephone’s AnnualMeeting in Syracuse, NY.

The Blue Ridge Council of the Pio-neers will hold a Crab Feast from 1-4p.m. on Saturday, September 23 at thePythian Building located at 330 Wal-lace Lane, Fredericksburg, Virginia.

The menu includes crabs, shrimp,hamburgers, hot dogs and soft drinks.Cost is $21 for adults and $8.50 fornon-crab eaters and children under12. For reservations, please send acheck before September 10, payableto the Telecom Pioneers, to FlorenceMonroe, 1101 Oakwood Street, Fred-ericksburg, VA 22701 or to RobinWillis, 19011 Industrial Drive,Culpeper, VA 22701. Please attach alist of names of the people attendingin your party.

Inquiries may be directed to Flo-rence Monroe at 540- 373-3541 orRobin Willis at 540-825-9924.

Fall 2006 BellTel Retiree 11

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.

“Did you ever feel like everyone out there was after your money?”

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If not ask for a FREE video, which you may find helpful in planning your retirement.

Call 1-800-427-9781 today Ask for Jim Mack – Retired Nynex

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Legacy Financial Advisors is not owned or operated by Legacy Financial Services, Inc. or Legacy Advisory Services, Inc.

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Fall 2006BellTel Retiree12

Verizon Quarterly ProfitFalls as Revenue Grows

on MCI Merger CostsIn August Verizon said its second

quarter profit fell 24% to $1.6 billionor 55 cents per share due to mergerintegration costs.

The results included 9 cents ashare in expenses from the formerMCI Inc., which merged with Verizonon Jan. 6. Excluding results post MCImerger the company had profit of 64cents a share. Revenues for the quar-ter were up 25.6% to $22.7 billionfrom the same period in 2005.Growth was attributed to Verizon’swireless and broadband units.

Even the pensions and benefits offormer elected officials thrown out ofoffice for wrong doing are secureaccording to the report. Among theexamples they note: Former Rep.Randy “Duke” Cunningham, (R-CA),who was sentenced to jail for eightyears and four months after pleadingguilty to bribery is still entitled to anannual pension of about $36,000 forthe 15 years he served in the House,not including his military pension or401K.

Another instance is embattled for-mer House Majority Leader TomDeLay, (R-TX) who after serving 22years has qualified for an initial pen-sion of $56,000. He could receive pen-sion payments of up to $2 million in hislifetime.

But according to James Klein, Presi-dent of the American Benefits Council,Congress’ slow action on national pen-sion reform may be in part, due to theoverall health and security provided by

its own pension. “I don’t think thatmany people in Congress would bequite so indifferent to the demise of thedefined-benefit plan if they didn’t havesuch a robust plan themselves,” hesaid.

As reported in another article in theBellTel newsletter, both Houses ofCongress are working on a variety ofpension reforms that many feel arelong overdue.

According to the National Taxpay-ers Union, after three decades RepHenry Hyde (R-IL) is retiring and willreceive a pension of $119,000 a yearand Ted Stevens (R-AL) a 38-year veter-an of the Senate would receive a pen-sion of $125,000 if he retired at the endof his current term in office.

Former Presidents of the UnitedStates, for comparison sake, receive ataxable pension equal to base pay ofCabinet Secretaries, currently$183,500.

After just 12 years in office a fed-eral lawmaker is able to retire atthe age of 60 and receive a pen-

sion of $25,000 a year and lifetime ben-efits that could be more than $800,000,not including 401 (k) benefits, accord-ing to a recent analysis by the SeattlePost Intelligencer.

Any Member of Congress whoremains in office for five years alsoqualifies for taxpayer subsidizedhealthcare until reaching Medicareage.

The newspaper’s analysis clearlywas that Congressional pensions arefar better and more lucrative thanthose for taxpayers in the private sec-tor, beginning earlier, granting a fixedmonthly payment based on yearsworked and pay that increases a thirdfaster than the average private pen-sion.

Members of Congress with fiveyears in office are eligible for full bene-fits at age 62.

After 20 years of service Members ofCongress can receive full benefits atonly age 50.

According to John Ehrhardt, a cor-porate retirement expert, regularCOLA’s received by Members of Con-gress could add about 25 percent tothe value of the Congressional planover a recipient’s lifetime.

To Live Like a Congressman in Retirement