NEWSLETTER OF THE ASSOCIATION OF U S WEST RETIREESNOW BRINGING YOU NEWS FROM ASSOCIATION MEMBERS IN ALL 14 U S WEST STATES!

GUARDIANRETIREETHE

SUMMER 2004

WE WERE THE OPERATORS AND REPAIR CLERKS, THE INSTALLERS AND LINEMEN, THE ENGINEERS AND NETWORK PLANNERS, THE CRAFT AND MANAGEMENTEMPLOYEES OF EVERY DESCRIPTION WHO BROUGHT TELECOMMUNICATIONS TO THE HOMES, BUSINESSES, AND INSTITUTIONS OF 14 STATES. NOW WE ARE UNITEDIN OUR COMMITMENT TO PRESERVE AND ENHANCE THE RETIREMENT BENEFITS PROMISED TO US AND TO THOSE WHO FOLLOW US AS TODAY’S ACTIVE EMPLOYEES.

2A Guardian

Angel NamedBob

4Legal

Activities

5First-Hand Report

Qwest AnnualMeeting

6Advocacy:

Guarding OurBenefits

12The View

fromWashington

16Milestones

17Local News

I N S I D E

Dear Friends,Ten years ago, when I became

involved in helping to organize aretiree organization for U S West re-tirees, little did I realize the comingonslaught of “takebacks” by cor-porate America. At that time therewere some rumblings, particularlyin the health care benefits arena.However, that was just a stiff breezecompared to the hurricane of today!

Corporate executives havethrown commitments to retireesaside, using the excuse that the cor-poration must be competitive whilesenior executive compensation continues to beobscene.

As an organization, we have found it necessaryto employ three attorneys in an attempt to protect

our benefits and rights. As I’m sureyou are aware, this is costly, but Ibelieve absolutely necessary. With-out competent legal counsel I amconvinced that we all would be farworse off today.

Finally, I appeal to each of youto become involved in our upcom-ing election. Please take the time toeducate yourself as to whichcandidates in your state will supportretiree issues. I am convincedunless we stem the tide, throughprotective legislation, the injustices

currently practiced by many of ourcorporations will continue!

Nelson B. Phelps, president and executive directorof the Association of U S West Retirees.

THREE LAWYERS FIGHT TAKEBACKSPRESIDENT’S LETTER

Nelson Phelps

Without competent legal counsel I am convinced thatwe all would be far worse off today.

A GUARDIAN ANGEL NAMED BOB

Bob Bossert, editor of this newsletter the past three years, passed away suddenly on May 8. He had gone for a walk on a favorite woodsy trail near his house in Shoreview, a nice suburb northeast of the Twin Cities. He had left a note for wife Lois and son Scott

that he would be back in a couple of hours, but he never returned. A sudden diabetic coma has been determined as the cause of his death.

Many of you knew Bob. Many of you didn’t. He left us at the relatively young age of 53, on a sparkling blue Minnesota spring afternoon.

Bob was a guy we all took for granted. His “job” as Guardian editor entailed assembling a lot of very important information from a lot of other good and concerned people in 14 states, and putting it all together in a cogent manner that we could all un-derstand and heed.

That’s not an easy task, and the skills and care with which to do it are not to be taken for granted. Bob brought to the job years of experience as a reporter at the Minot (N.D.) Daily News, and more years as a superb reporter and editor and writer and photographer on Northwestern Bell and U S West employee publications.

Bob was above politics. He didn’t know how to say anything bad about anyone, ever. He was always truly interested in the people he wrote about, and the people he knew. He cared about them, long before “caring person” became a banal cliché. He was a gentle man, for all of us to emulate. He wrote of the facts, and let us all decide.

Bob easily could have been a shining star at any national or international publication, but he chose to write about telephone people, for a lot less money and fame and fortune, as an active employee, and more recently as our editor, our friend, and now, as our gentle Guardian Angel. We love you, Bob. Thanks.

A POSITIVE PERSPECTIVE

Qwest’s 2003 Annual Report by Eldon Graham

Qwest’s recently released 2003 Annual Report (see it and other information about the company at www.qwest.com/about/investor/) provides some encouraging news about our pension fund. You may recall that at the end of 1999 (six months before the merger with Qwest) the U S West pension fund had a surplus of $5.7 billion. (There is a surplus when the value of pension fund assets exceeds expected future pension payments to retirees.) By the end of 2001 the surplus had shrunk to just $1.5 billion, and by the end of 2002 the pension fund was $314 million short of what was needed. The situation improved in 2003. In its report the company has said that at the end of 2003 there was again a small $50 million pension surplus. That’s important for a number of reasons, most notably because the company has said its willingness to continue to pay death benefits depends upon the condition of the pension fund.

Contributing to the surplus last year was a $1.7 billion gain in the value of assets and 37% reduction in benefits paid. The asset gain was 68% greater than benefits paid; a sign the pension plan may be able to sustain itself.

There’s something else encouraging in this latest report. While many companies have been accused of manipulating their pension calculations

to make them look better, Qwest used a more conservative “discount rate” that made the pension surplus smaller than if it had

(Continued on page 3)

repeated the “discount rate” used in 2002. A new disclosure in the 2003 report is the pension fund’s asset allocation: 63% equities (e.g., stocks), 24% debt (e.g.,

bonds), 6% real estate and 7% unspecified other. In an earlier article we spoke about the federal prescription drug subsidy to begin in 2006 which will probably reduce

Qwest’s cost of health care provided to retirees. Some companies have reportedly elected to begin taking credit for that future drug subsidy in their 2003 earnings reports, but Qwest opted to wait for “authoritative guidance on the accounting for the fed-eral subsidy” before recognizing the effects of the subsidy.

And the company offered up some positive news for shareowners as well. During 2003 Qwest reduced total debt by more than 22%, and in spite of a 7% decrease in operating revenue it slashed its operating loss by nearly 99%.

With all the concerns we have had since the merger, let’s hope 2003 marks the beginning of better times. Eldon Graham is Vice President of the Oregon/Washington Pension Equity Council

(Continued from page 2 - A Positive Perspective)

I wish our Association had the funds with which to launch a “Spirit of Disservice” advertising campaign to let the world know what Qwest, a once honorable company, is doing to its retirees and active employees.

Qwest’s successful “Spirit of Service” ad campaign extols the employees and customers now providing and using their services, as the company struggles to survive and excel. The ironic dichotomy here is that many of us retirees, and those before us, built that Spirit of Service. Our thanks has been a series of betrayals and broken prom-ises and unanswered questions posed to the lawyer-staffed Inhumane Resources Department in Denver as to “what’s next?”

We post-1990 retirees started taking an estimated $2,000 decrease in our meager annual pensions in January, with the 20-percent “cost-sharing” plan foisted on us to help them pay for “soaring health care costs.” That’s conservative, and it’s a lot higher for retirees paying exorbitantly higher co-pays for more drugs and doctor visits and hospital stays. We had already taken many “demotions,” as the cost of living soars and no pension increases come for many years.

So, that’s some context for customers watching and reading those warm-and-fuzzy “Spirit of Service” commer-cials and ads. The campaign doesn’t reveal how many of those active employees are having their benefits chopped, and how many of them are being terrorized into long hours of work, humiliated and threatened with firing at not reach-ing unrealistic sales goals, and plagued with worry of being among the latest 5,000 soon to be “down-sized,” that silly euphemism we all know too well.

We hear that we “still have some of the best benefits in

“SPIRIT OF DISSERVICE” CAMPAIGN the country.” True, but we also see what’s happening to other Baby Bell kids and grandkids, and we are not naive enough to think that the big boys don’t check signals every day. The old Ma Bell has become Mother Centipede, and she drops shoes every day. I have an AT&T retiree pal in Texas who pays 60 percent of his health-insurance costs. He has heart and other problems, and had to go back to work to pay his bills – clean-ing rented sewer snakes for Home Depot. His only salvation is a sharp sense of gallows humor.

Reporters are beginning to catch on to how Qwest and other companies finagle retirees out of long promised benefits and zoom the savings right to their bottom lines (See St. Paul Pioneer Press story synopsis on Page 7). The Wall Street Jour-nal also has reported how “soaring healthcare costs” often are not soaring at all, but made to soar with devious accounting tricks.

What do Qwest and other companies do to challenge HMOs on executive salaries and benefits that are at least as obscene as their own? And the drug companies who are the real benefactors of the disgraceful new Medicare prescription bill, and whose prices also are obscene?

And here’s a facet that I’m amazed no reporter digs into: Qwest and predecessors for many years collected from cus-tomers billions of dollars specifically designated for pensions and benefits in rate structures approved by state regulatory commissions. Why do these commissions and state attorneys general not require them to keep all the promises they were paid to keep?

Paid with rate money collected from many of the customers they now are wooing with those “Spirit of Service” commer-cials.

-- Tom Lee

LEGALACTIVITES

LEGALACTIVITES

The Retiree Guardian / Summer 2004 4

Colvin v. Qwest (Retiree Telephone Concessionlawsuit). The case filed by Wesley Colvin will enterthe formal discovery stage later this month. Thatmeans we will be allowed to get records fromQwest and take depositions to prove the commit-ment was to continue telephone concession to thoseretirees living in exchanges Qwest sold toIndependent Telephone Companies. Mr. Colvinlives near La Junta, Colorado and his local phoneservice exchange was sold by Qwest to anIndependent Telephone Company. As you know, thecompany decided to save about $150,000 per monthby ending the retiree telephone concession serviceto persons living in exchanges owned by Indepen-dent Telephone Companies. The savings is aboutthe same amount being paid monthly to deposedformer Qwest CEO Joseph Nacchio. After con-ducting some necessary discovery, by the end of thesummer, we will ask the trial judge to allow the caseto proceed on behalf of about 4,500 retirees who,like Mr. Colvin, are no longer getting the RetireeTelephone Concession reimbursement. There willbe an update at the end of the summer. Pleasecontinue to mail Curtis Kennedy photocopies ofsupportive documents concerning the company’scommitment to provide retiree telephone conces-sion reimbursement.

Strauss v. Anschutz. (Shareholder DerivativeLawsuit) Mr. Strauss’ attorneys filed this lawsuit asa shareholder derivative case, meaning Mr. Strausswanted Qwest to force Mr. Anschutz, Mr. Nacchioand about 10 others to pay Qwest damages for allthe alleged wrongdoing which Mr. Strausscontended exceeded $2 billion. However, beforedoing any formal discovery and forcing the former

By Curtis. L. Kennedy, Attorney-at-law, Denver, CO

This is a brief update on certain pending legal matters involving theAssociation of U S West Retirees and certain members:

officers and directors to answer questions underoath, Mr. Strauss’ attorneys reached a settlementagreement with the defendants and Qwest. InFebruary, Mr. Strauss asked the trial judge toapprove a settlement that does not require any of thedefendants to pay a single dime to the company, andthe attorneys are asking for fees in the amount of$7.5 million payable from an insurance policy fund.On behalf of AUSWR and several members wefiled objections and are seeking permission tointervene so as to do some discovery to prove thesettlement is inadequate. We think the attorney’sfees requested are extremely excessive. We are notalone. Several major institutional investors,including CALPERS, took our cue and have filedsame or similar objections. There will be a hearingby the Denver County District Court judge on June15 to decide whether the proposed settlementshould be approved. There will be an update at theend of the summer.

AUSWR and the Department of Labor (DOL)(Freedom of Information Act request for pensionplan information) AUSWR members have longknown that, supposedly, there was an “investiga-tion” being conducted by the Kansas City DOLoffice concerning wrongdoing associated with theQwest Pension Plan. Despite two years, nothing hashappened. So, we made a formal request under theFreedom of Information Act (FOIA) and asked forthe records of the alleged “investigation.” TheKansas City office flatly refused. On March 16,2004, we sent a formal appeal to the DOL Solicitorin Washington, DC and the agency has not yetresponded, although agency personnel have(continued on page 8)

By Hazel Floyd, President – Colorado/Wyoming AUSWR(See Denver Post columnist Al Lewis’ story, “Qwest Board Hides Out in Plain Sight,” on page 9.)

The 2004 Annual Meeting of Qwest was heldMay 25th in the Ballroom of the Marriott City Centerin Denver. All the Qwest employees greeted uswarmly, but we did not feel the Chairman and CEODick Notebaert’s greeting was as friendly as lastDecember’s. Some of us were also reminiscing aboutnot receiving lighted pens and those great Qwestnotebooks we received at previous meetings. Weentered the ballroom as a group again and filled thecenter section with microphones on each side.

Notebaert was alone on the podium for the entiremeeting. He was very businesslike and started withnaming three challenges Qwest is faced with: 1.Qwest is now a commodity and must differ fromother commodities with the service they provide; 2.Regulations – Competitors have advantages withoutregulations. Qwest is improving to equal nonregu-lated on time required to provide service; and 3. NewFeatures – The shift in technology has grown to 27percent no-line phones. Demand for DSL hasincreased for both land lines and no-lines. On VoiceOver Internet Protocol Qwest was first out of the box,but must have back-up for that. Following that, wewere shown clips on the large screens of happycustomers with ‘Spirit of Service’ promotions.Notebaert then exchanged pleasantries with the CWAPresident John Thompson.

The re-election of four directors, and theirproposal to allow directors to be removed withoutcause both passed with over 90 percent.

The meeting took on a different tone when allshareholder proposals were rejected.

Proposal #3 from the California State Teachersorganization, who own 4.4 million shares, requestedseparate chairman and chief executives on the QwestBoard. This was defeated with 70.6 percent againstand 28.4 percent for.

Proposal #4 concerning supplemental executiveretirement pensions (SERP) was presented by ourteam – Jaclyn Prokesh, Richard Schneider and my-self. I read the proposal and supporting statement andJaclyn added an additional comment. This proposalwas defeated with 69.1 percent against and 29.9percent for. Not bad for a first time effort!

Proposal #5 was presented by Eldon Graham,Vice President OR/WA PEC, on behalf of himself andHoward Rickman, President, Oregon/Washington

PEC. This proposal requested that two-thirds of theboard be independent with no significant ties toQwest. It was defeated with 73.9 percent against and25.1 percent for.

During the time when votes were being counted,we were allowed discussion and questions andanswers from the audience.

Mimi Hull led with a statement which coveredmany retiree problems: no pension increase, obsceneexecutive pay, loss of all dividends, increased medicalcosts for post 90 retirees, loss of concessions toretirees in non-Qwest service areas and the threat oflosing death benefits.

Hy Bradley, a Utah AUSWR retiree, tookNotebaert to task for refusing to introduce directorspresent, or explain their absence.

Gerald Armstrong, a regular annual meetingattendee, also criticized Notebaert concerning theabsence of directors with no explanation, and for theiropposition to shareholder proposals.

Ed Kerber stated the news from the SBCsettlement, which will give Notebaert and Allen$2,500 bonuses for 2004 as SBC retirees, and that theyshould be very happy with this.

Nelson Phelps reminded Notebaert and the boardmembers present that retirees have not had a pensionincrease since January of 1996, while during that timeexecutive compensation has been excessive. Thereasons given for the executive compensation are thatthe company must be competitive to attract top candi-dates. The company must be competitive – anotherreason used for retiree takeaways. Nelson used therecent headline in the Rocky Mountain News “CEO’SRode Bull” which referred to Notebaert’s being namedNo. 18 out of 50 top-paid Colorado CEOs, andcompared it with retiree headline “Retirees RideDonkey.”

Several other shareholders criticized Qwest forusing the security firm of Wackenhut, which has beenin the news lately for security lapses. Notebaert statedhe would refer complaints to their Compliance Officer.

We were all very disappointed that Notebaertwould not answer any questions, nor would hecomment on stockholder concerns. Thanks to allretirees who participated and who attended thismeeting to support us. We must continue to show ourstrength, and we will.

Summer 2004 / The Retiree Guardian 5

A FIRST-HAND REPORT FROMTHE QWEST ANNUAL MEETING

ADVOCACY:

The Retiree Guardian / Summer 20046

ADVOCACY:And the Beat Goes on . . . It seems like it was just yesterday. But did you

know that your Retiree Advocate program has beenin existence for the past three years, since June 2001,when it was first brought forward? My, how timeflies when you’re having fun!

Recently, we have been asked to clarify anumber of items and issues:

Death BenefitsWe recently asked Qwest: Are management

personnel who retire after January 1, 2004 still eli-gible for the Death Benefit? There is no differentialbetween occupational and management retirees (atthis time) as it relates to the Death Benefit. TheUnion agreed contractually to its elimination forthose who retired after December 31, 2003. Here isthe response we got from Felicity O’Herron inQwest’s Human Resources Department:

“Howard:The Death Benefit was eliminated for all retirees

who retired after December 31, 2003, managementand occupational. It currently remains in place forpeople with TOE dates before February 28, 1993who die while actively employed, as long as they’vebeen continuously employed.” – Felicity O’Herron(Added by AUSWR: Also remains in place for thosepresently retired who qualified, and retired beforeJanuary 1, 2004.)

We also need to clarify: The Death Benefit is notan insurance policy. It is part of the Pension Plan,and it amounts to the last year’s salary made whileworking. The first $5,000 is tax-free, and theremainder is taxable. That, alone, shows that it is notviewed by the IRS as an insurance policy. We havebeen made aware that Qwest would like to eliminatethis benefit for existing retirees, but is presently

holding off We have informed them that wepresently plan on a class action lawsuit if theycontinue down this path.

The Union signed off on the elimination of theDeath Benefit for anyone who retired as of, or after,January 1, 2004. New employees who were hired inearly 1993 are also not covered by the DeathBenefit (see above).

Life insurance is an entirely different benefit. Itamounts to one year’s salary, with a 10-percentreduction each year starting at age 65 until age 70,when it is at 50 percent of that last year’s salary.There are also some other governing items,including the fact that the lowest benefit is $20,000,and then it moves up to $30,000. Examples: If youretired and your last year’s salary was $25,000, itwould be reduced to below $20,000 at age 70, sothe minimum would be applied – i. e., $20,000. Ifyour salary was higher and your applicable lifeinsurance fell between $20,001 and $29,999, yoursurvivors would receive a minimum of $30,000. Ifit was above $30,000 at age 70, then the higheramount would apply. None of the life insuranceproceeds is taxable.

The life insurance can be designated for bene-ficiaries other than the spouse if requested, or to theEstate. The death benefit is only payable to the sur-viving spouse or, in some special cases, to a depen-dent child.

Primarily, you need to recognize that these twoare completely separate benefits, and monetarily aretreated very differently.

Telephone DiscountsA Qwest letter was mailed in December 2003

outlining the company discount plan for retirees. A(continued on page 9)

Guarding Our BenefitsBY HOWARD RICKMAN – OMBUDSMAN, AUSWR

Critically Important Reminder: If you have concerns/problems with any benefits, you shouldfirst contact the Qwest Service Center at 1-800-729-7526. During this contact, you should note thedate, time and name of the person(s) you talked to. This information will assist your RetireeAdvocates in getting a resolution if you are not successful through the Service Center. Your StateAdvocates are listed in each Retiree Guardian newsletter.

BOARD HIDES OUT IN PLAIN SIGHTBy Al Lewis, Columnist

I could have written this column last week, butsince it’s about Qwest, I figured you’re used towaiting.

Waiting for service, waiting for the stock to hitfour lousy dollars, waiting for regulators to exact asettlement for past sins, waiting to settle nastyshareholder lawsuits, and waiting for BellSouth orSBC Communications to absorb this mess with atakeover bid.

Qwest sure loves to tout its “Spirit of Service”campaign. But what we’ve really got is the Ghost ofAccountability.

At Qwest’s annual shareholder meeting on May25, three measures to improve corporate govern-ance were voted down at management’s suggestion.

That’s business as usual for shareholder meet-ings, where finely attired corporate officers anddirectors often just pretend to care about feedback.

What was not business as usual: CEO RichardNotebaert did not introduce Qwest’s board of direc-tors to the shareholders they are supposed torepresent.

He also did not do this at Qwest’s previousshareholder meeting in December. But this time,Qwest’s persistent gadfly Gerald Armstrong askedNotebaert to do so. And Notebaert declined. WhenQwest retiree Hy Bradley made the same request,Notebaert declined again.

Notebaert’s response was like a lawyer tellingtwo cops they can’t interview the suspects, onlymost of these inquisitors were harmless senior citi-zens with a stake in the company.

After the meeting, I asked Notebaert if thedirectors were hiding behind the stage curtain. Hesaid they were in the audience. A Qwest spokesmanlater confirmed that 10 of Qwest’s 13 directors wereat the meeting with special badges that identifiedthem.

So why didn’t Notebaert introduce them? “Itjust takes up too much time,” hetold me.

Jack Ehnes, chief executive ofthe California State Teachers’ Re-tirement System, a Qwest investor,couldn’t believe it. “If I was a boardmember in that audience, I wouldhave absolutely stood up and intro-duced myself,” he said.

Mark Harnett, president ofMacKenzie Partners Inc., a New

York-based proxy solicitation firm that works withEhnes’ group, also could not believe it.

Harnett has been to more than 200 annualshareholder meetings, but he said this was the firstwhere the board of directors was not introduced.

“Usually, they are in the front row. They getintroduced one by one. They all stand. Face theaudience. And sit back down,” he said.

For an additional reality check, I called JohnMeredith, executive director of the Center forCorporate Change, a Colorado-based group of busi-ness leaders and academicians who study the causesof unethical behavior.

“How are you going to make decisions on theboard if you don’t take the heat?” he asked.

So why are Qwest’s directors hiding?“Nine of the 13 were the cause of the problems

that we have today,” Armstrong said.I made enough unreturned calls to Qwest’s

directors last week to know that they don’t want totalk about this issue.

Qwest founder Phil Anschutz did not appear atthe meeting. I am not sure of the two others who didnot attend.

Since Notebaert wouldn’t introduce Qwest’sboard, I will. Besides Anschutz and Notebaert, theyare: Linda Alvarado of Alvarado Construction;Thomas Donohue of the U.S. Chamber of Com-merce; Jordan Haines of Fourth Financial Corp.;Cannon Harvey of the Anschutz Corp.; PeterHellman of Nordstron Corp.; venture capitalistVinrod Khosla; Frank Popoff, formerly of DowChemical; Craig Slater of the Anschutz Corp.;Thomas Stephens of MacMillan Bloedel Limited;Charles Biggs, former consultant for Deloitte Con-sulting, and Dane Brooksher, chairman of ProLogic.Biggs and Brooksher are new to the board.

Most of these directors were around whenformer CEO Joe Nacchio ran the company to thebrink of bankruptcy.

Most of them are named inshareholder lawsuits. And with U.S.Department of Justice and U. S.Securities and Exchange Commis-sion actions hanging over them,maybe they’re cautious of a forumwhere they might say somethingthat could be held against them.

Like, “Hi, I’m still on theboard.”

Summer 2004 / The Retiree Guardian 7

Denver Post, June 1

Qwest sureloves to tout its

“Spirit of Service”campaign. But what

we’ve really gotis the Ghost ofAccountability.

The Retiree Guardian / Summer 20048

“As most of you know, on January 1 Qwestdiscontinued concession service for many of ourretirees living outside the Qwest service area. Asnear as we can determine, this impacted nearly5,000 of our fellow retirees. This is just anotherexample of the corporation chiseling away at ourearned and promised benefits. I,along with our Executive Board,have authorized our attorney,Curtis Kennedy, to prepare alawsuit to force the company toreinstate concession service tothose who were impacted by thiscallous act! However, WE NEEDYOUR HELP! Please take the timeto look through your personaldocuments for any letters,company newsletters or othermaterials that deal with concessionservice for retirees. Please sendoriginals or copies to Curtis at8405 East Princeton Ave., Denver,CO 80237.”

Kennedy, in another urgent

reported several times over the past month that theyare working on the matter. If we do not get aresponse by mid-June, we intend to file a civilaction and ask a federal court judge to force theDOL to give us the requested information. Therewill be an update at the end of the summer.

There are other legal issues resulting frombehind the scenes communications betweenAUSWR membership and Qwest, and these issueshave not ripened into civil actions. For instance, webelieve Qwest leadership continues to hold off

trying to end the Pension Death Benefit becauseAUSWR made it clear that there will be litigation ifthat occurs. Thus, there is no pending lawsuitconcerning the Pension Death Benefit. Thecompany has refused to provide AUSWR membersrequested information concerning Qwest PensionPlan investments and related informationconcerning the administration of the pension plan.We will decide what appropriate action will betaken when we get the information we are seekingfrom the DOL. There will be an update at the end ofthe summer.

request on April 10, asked specifically for anoriginal copy of the February 12, 1990 issue of theemployee newspaper, U S West Today, which has astory on Page 3 headlined “Concession: If you haveit now, you still will under new plan.”

In the March 12 edition of the La Junta(Colorado) Tribune, reporterRodney Baird wrote that La Juntaresident and U S West 1990 retireeWesley Colvin had filed a class-action lawsuit against Qwest. “Thesuit is on behalf of over 4,500 re-tired employees who have enjoyeda telephone service discount aspart of their retirement package,”Baird reported. Colvin worked forU S West and Mountain Bell for 30years.

In the story, Colvin says that“Qwest recently terminated a long-standing contract with retirees pro-viding a ‘Telephone ConcessionReimbursement’ plan and is thusliable for breach of contract.”

PHELPS, KENNEDY ISSUE URGENT PLEAFOR HELP IN CONCESSIONS LAWSUIT

(See Attorney Curtis Kennedy’s legal update on Page 16.)

Nelson Phelps, AUSWR president and executive director, and Association Counsel Curtis Kennedy,have issued an urgent request to retirees and others for documents relating to Qwest concessions

for services. In a February 24 letter, Phelps writes:

LEGAL ACTIVITIES (continued from page 4)

This is just

another example

of the corporation

chiseling away

at our earned

and promised

benefits.

(See report on untimely death of Guardian Editor Bob Bossert on Page 2)

LETTERSTO THE EDITOR...

Working with a ProIn working with Bob, you

were working with a profession-al. After agreement was reachedon a new, more-unified Guardian,it was Bob’s task to make ithappen, and he did. Everyone inthe 14-state organization feltcomfortable working with him.He was fair, open to input, andalways followed through on hiscommitments.

Jim BurnsOutgoing ChairmanNWB/U S West RetireeAssociation, Omaha, NE

Gentleness, KindnessBob and I worked together

over the past couple of years onthe Guardian. What impressedme most was his gentleness andkindness. He was wonderful towork with. He was a professionalin what he did. I am thankful thatI had an opportunity to talk withhim last fall when I was inMinnesota. I will miss him. Ourcondolences go out to his wife,Lois, and son, Scott.

Nelson PhelpsPresident and ExecutiveDirector,Association of U S West RetireesDenver, CO

A Man of His WordBob Bossert was a friend of

mine. He was a true professional,an excellent editor, and – mostimportant of all – a man of hisword. His expertise at his tradewas such that we recently hiredhim to design, write and publishthe first edition of the NRLNNewsletter. It was a large success.We will miss him.

Jim NorbyPresident, National RetireeLegislative Network,Washington, D.C.

I Will Miss Him Bob, Guardian Publisher

Mike Halvorson and I would gettogether for lunch occasionally toshare feedback on electronic andprint publishing, mailing sched-ules and many other issues. Bobe-mailed me after our first lunch:“It was so nice seeing you again.You haven’t changed since yourNorthwestern Bell days.” Thatwas 25 years ago, and Bob waskind enough to overlook the agingprocess. At our last lunch, inMarch, he talked about gettingtraining to become a webmaster -adding to his many skills as helooked for a new employer; hehad been “down-sized” out of hissecond job since undergoing thatprocess with U S West. We had

such a nice visit, and I will misshim so very much!

Phyllis KielblockExecutive Secretary,Database Administrator andE-mail CoordinatorNWB/U S West RetireeAssociationEden Prairie, MN

Committed to BestI spoke with Bob directly

only a couple of times, but com-municated with him via e-mailfor the most part. What I remem-ber most is his commitment todoing the very best job possible.He was expert with his skills andwas very helpful in brainstorm-ing with us to come up wth betterways to share and work with theelectronic copies of the news-letter. It is a loss for all of us tolose such a gentle soul. I praythat he is at peace and that hiswife and family can find thecomfort of knowing that Bob willlive on in our hearts andmemories

Donnetta MitchellMurray, UTArea Chair,Utah, Idaho & MontanaAUSWR

(continued on page 11)

The Retiree Guardian / Summer 200410

Summer 2004 / The Retiree Guardian 11

LETTERS TO THE EDITOR...A Credit to Us All

Bob always conducted him-self in a professional mannerthroughout my experience inworking with him. His work wastop-drawer and insightful. I firstworked with him while he was inPublic Relations for U S West,and later when he did marketingfor the Interprise group, and Iprovided help from a regulatoryperspective. I worked with Bobafter my retirement on Commis-sion meetings in which retireeswere involved. His excellentjournalism and Guardian man-agement brought great credit toall our endeavors.

John O’BrienRegulatory RepresentativeNWB/U S West RetireeAssociationSt. Paul, MN

Bob the Dimpled ProI first met Bob at the 2002

AUSWR Annual Meeting inSioux Falls. I was drawn to him,and we bonded immediately. Iteased him about his gorgeousdimples, and he took a picture of“the old lady from Omaha” forthe Guardian. We giggled likeschool kids. Bob was passionateabout maintaining integrity inthe written word. He was theconsummate professional. I hopehe has the peace he so richlydeserves.

Ada BorkDirector, NWB/U S WestRetiree Association, Omaha, NE

Quiet, Kind, TalentedBob and I worked together

while he and I were at NorthernStates Power (now Excel), and Ialso knew him when he workedat U S West up the street. He wasquiet, kind and a very talentedprofesstional. I really enjoyedworking with him.

Jerry MillerRetired Creative Director,Northern States PowerMinneapolis, MN

Humble, ThoughtfulBob and I often worked to-

gether when I was an AV managerat U S West and NWB. He had aquiet way of putting photosubjects and others at ease. He wasa gifted photographer and lovedthe outdoors. He had a strongsense of right and wrong, and theonly time I saw him mad waswhen he was righting a wrong toanother. What a lovely gift it waswhen he shot my retirement party.I complimented him on hisGuardian work, and he shuffledhis feet and said: “Others do thework.” Talent, kindness, humility:a rare combination these days.

George WellesRetired Audio Visual Manager,U S WestMinnetonka, MN

(continued from page 10)

ELDON GRAHAM WAS AUTHOR OFGUARDIAN LAWSUIT STORY

The lead story in The Retiree Guardian Winter 2004 edition, “AUSWR Authorizes Lawsuit,”was written by Eldon Graham, Vice President, Oregon/Washington Pension Equity Council. Hisby-line was inadvertently left off this critically important story. Eldon is the author of an equallyimportant analysis of retiree issues in the 2003 Qwest Annual Report, on Page 6 of thisGuardian. We deeply regret the oversight in the last issue, and thank Eldon for these and hismany other insightful contributions.

Summer 2004 / The Retiree Guardian 9

paragraph on the AT&T credit stated that there wouldbe a change, and that in order to continue to receivethe long-distance credit, eligible retirees would needto switch to Qwest LD. Complete details on whenthis will take place and how we can switch to QwestLD were to be sent by the company “in early 2004.”Early 2004 seems to have slipped by without anyfurther information from Qwest. Did we miss thisinformation, or is it still in the mill (or mail)?

Don’t do anything until you get the directive anddirections from Qwest, or you may lose your LDconcession.

Health CareHealth care issues have continued to decrease,

for which we are really thankful. Recently, we have

The loud message comes from one companyafter another: Surging health-care costs for retiredworkers are creating a giant burden. So companieshave been cutting health benefits for their retirees orrequiring them to contribute more to the cost.

Time for a reality check: In fact, no matter howhigh health-care costs go, well over half of largeAmerican corporations face only limited impactfrom the increases when it comes to their retirees.They have established ceilings on how much theywill ever spend per retiree for health care. If healthcosts go above the caps, it’s the retiree, not thecompany, who’s responsible.

Yet numerous companies are cutting retirees’health benefits anyway. One possible factor: Whencompanies cut these benefits, they create instantincome. This isn’t just the savings that come fromnot spending as much. Rather, thanks to complexaccounting rules, the very act of cutting retirees’future health-care benefits lets companies reduce aliability and generate an immediate accounting gain.

In some cases it flows straight to the bottom

line. More often it sits on the books like a cookiejar, from which a company takes a piece each yearthat helps it meet its earnings targets.

The art of minimizing retiree-benefit costswhile creating income is arcane and poorly under-stood by the public – and by the retirees.

(The story, which should be read in its entire-ty, goes on to relate how big companies began inthe early 1990s to set ceilings on how much theywould ever spend for retiree health care, no matterwhat happened to medical costs in general.Examples are cited of retirees from IBM, Aetna,Caterpillar and others. Writes Schultz: “It mayseem strange that a company can get income fromcutting benefits it hasn’t paid and may never pay,but that’s how it works.”)

When a company’s liability for retiree healthcare soars, it’s usually just because of some changein the assumptions that went into the liabilityformula – a change the company itself made.

A shift could be in store, if interest rates risefrom current historic lows.

encountered problems with the new bank, andcontinued problems for surviving spouses, withCompLink. These concerns are being activelyworked on through the Benefit Office.

Once again: Your Retiree Advocate is here tohelp you! The advocate for your state is listed ineach Retiree Guardian newsletter, and on web sites:www.uswestretiree.org and www.qwestretiree.org.

Howard Rickman, Beaverton, OR, retired as Dis-trict Manager – Network Services in 1983. He wasresponsible for all Central Office operations in theGreater Portland/Vancouver Area of Oregon/Washington. He is a vintage USWAR leader, formerRetiree Voice Chairman, and organizer of theOmbudsman and Advocate Programs.

ADVOCACY: GUARDING OUR BENEFITS (continued from page 6)

MUST Reading from the March 16 Wall Street Journal --

HOW CUTS IN RETIREE BENEFITSFATTEN COMPANIES’ BOTTOM LINES

By Ellen E. Schultz and Theo Francis

(Note: Schultz and Francis have covered retiree issues comprehensively for years, and ourAssociation members have been in touch with them. We should watch for their stories daily, because

there’s more to come. Excerpts from their March 16 story follow.)

The Retiree Guardian / Summer 200412

It has been published a numberof times, but let’s review again themission of the NRLN. It has alsobeen referred to as “our objec-tives”.

For the benefit of newer mem-bers, let me explain, briefly, whywe have a National RetireeLegislative Network. Some fouryears ago, it became apparent thatlitigation (through the court sys-tem) was not going to gain anybenefit to retirees, because theERISA laws, which had beenpassed in the 70s, had beenamended and interpreted in such away as to make class action lawsuits a losing proposition. We wereadvised by our lawyers, at thetime, to seek relief elsewhere, andthey recommended Federal Legis-lation. It was apparent by this timethat our former employers weregoing to follow the letter of the lawrather than their commitments inthe treatment of retirees in theirbenefits and pensions. So, weformed the NRLN around theobjectives shown in the MissionStatement.

This brings us to the here andnow.

Most recently, we have seenbig business assault the pensionfunding process itself. Corporateheads have asked Congress toallow a two year moratorium towithhold pension fund payments.Their requests came as stock market profits wereebbing and bottom lines were suffering. Recentreports from the Pension Benefit GuaranteeCorporation Fund are grim. Defaults are on the rise,and a two year hiatus would be in opposition toretiree interests. Congress granted this accommo-dation with little or no discussion. Critics wereignored, and so was any consideration given forother plans.

Congress is now faced withdeciding what should be given firstconsideration: corporation’s bottomlines or the corporation’s fiduciary

responsibility to their retiree’spension funding. It should be aclear case of doing the right thing.It is time to demand seriouslegislative reforms on the Federallevel.

The most egregious legislationto come from Capitol Hill recentlyis the Medicare Prescription DrugLaw passed in December. Leadersof the legislation kept colleaguesin the dark about its contents andscope, but the bill passed. Littleinformation about the bill wasmade to the public beforehand.When finally made public, it wasbad news for the retirees. Aftermonths of arm twisting, the billpassed, but not without greatdifficulty. The price tag for the billis now estimated at something over500 billion dollars over the nextdecade.

At stake are the pension andhealth care funds earned by over 45million corporate retirees duringtheir lifetime. Corporate leadersare playing a new game these days.They will stop at nothing tosucceed. Their leaders know theirretirement funds represent greatsums of money. It’s apparentlyworth the risk to divert thesebenefits, but corporations need theblessings of politicians who arewilling to remove regulatory bar-riers and change the rules.

What must retirees do to pre-serve what is rightfully theirs?

Retirees across the country who see the writingon the wall are forming and joining retiree associ-ations and affiliating with the NRLN. They are alsojoining in the cause by joining as individuals. TheNRLN is gearing up to take the fight to the grassroots level and make our issues a priority in thehalls of Congress.

We need a ground swell by retir-ees and interested citizens to get theretiree’s message out. The messagemust be carried to Congress, the

THE VIEW FROM WASHINGTONNRLN PRESIDENT’S REPORT

Jim Norby

(continued on page 13)

MISSION

We seek to securefederal legislation thatwill guarantee the fair

and equitable treatmentof retirees in private andpublic sector, health andpension programs, and

will improve theadequacy of benefits

provided by suchprograms. Also, we arecommitted to watch forand stop legislation thatthreatens retiree healthand pension programs.

Summer 2004 / The Retiree Guardian 13

Administration, and the Media, andwithin our local communities. Wemust build a strong, grass rootsorganization to level the playingfield. Congress listens to the folksback home. We retirees must uniteand create a huge voting block thatwill demand the attention oflegislators on Capitol Hill.

Volunteer advocates are vitallyneeded to let politicians know thatretiree’s interests are a priority.Congressional leaders must under-stand that retiree issues are tooimportant to be placed on the chop-ping block by uncaring, greedy,power hungry corporate leaderswho skirt the law for their own selfinterests. The need now is morecritical than ever because of thebarrage of laws and deregulationsthat have been allowed to pass.This makes it imperative thatretiree leaders emerge at the grassroots organization and becomeinvolved in the broad politicalarena in delivering the retireemessage. Members of Congresslisten very closely, especially tothose folks who have knowledgeand first hand experience in thearea they are advocating. By beingon the front lines, you are in aposition to explain the impact thatFederal policy is having on yourlife, personally. This kind of infor-mation is invaluable and persua-sive to members of Congress.

Other than the issues previ-ously mentioned, the following is a summary ofmajor issues on which the NRLN has assumed aposition.

• We advocate the passage of HR1322 –legislation that we both wrote and arranged forintroduction into the House of Representatives.(Emergency Retiree Health Benefits Protection Act,an amendment to ERISA to provide protection forretiree health benefits)

• Support of a proposed rule by the FederalAccounting Standards Board (FASB) that wouldrequire publicly traded companies to list the value ofstock options as expense on their financialstatements.

• Support for a bi-partisaneffort in Congress to allow theimportation of lower cost prescrip-tion drugs from Canada and othercountries.

• Support of congressionalrepeal of the so called SEC420 and401(H). As written, this UnitedStates Code allows corporations touse various means to skim pensiontrusts in order to enhance corpo-rate profits.

Two final matters that youshould know about.

The Affordable Health CareTeam of volunteers remainsfocused on identifying otherorganizations around the countrythat have an interest in health carereform. Specifically, they are cur-rently conducting a survey ofhealth reform proposals in theinterest of seeking a consensus.The goal of this group is toresearch and propose legislationthat a broad spectrum of interestedparties and both political partiescan support. If this happens to bean area that you have an interest orexperience and would like tovolunteer, please let me know.

Second, we continue to devel-op the National Legislative Com-mittee that we hope to have inplace by the start of the summerelection campaign. This Commit-tee will have State chairs in nearlyall states (We have members in allstates.) They will be responsible

for the advocacy of our NRLN issues withcongressional candidates, incumbents, and thepress. This is the heart and soul of the NRLN – agrass roots advocacy network. Later, we will takethese committees down to all 435 CongressionalDistricts. We need your help. Let me know if youwould like to participate. A training package is nowin production, and volunteers are already gettingorganized. More to follow.

God Speed.

Regards,Jim Norby

THE VIEW FROM WASHINGTON (continued from page 12)

Congressional

leaders must

understand that

retiree issues are

too important to

be placed on the

chopping block by

uncaring, greedy,

power hungry

corporate leaders

who skirt the law

for their own

self interests.

The need now is

more critical than

ever because of

the barrage of laws

and deregulations

that have been

allowed to pass.

Summer 2004 / The Retiree Guardian 15

IN THE MEDIAIN THE MEDIAFrom media coverage around the region and nation.

St. Paul Pioneer Press, May 16

Little Benefit to RetirementRetirees who thought their health insurance wascovered get cut off as companies change. (Qwestsegment of story by Gail MarksJarvis follows.)

Feeling Let DownRodney Peterson also didn’t think he’d have a

health care worry when he retired 21 years ago fromNorthwestern Bell in Duluth. His employer guaran-teed coverage for life. But now he’s paying about$800 a year, and at 81, he can’t work for the extramoney.

That’s part of his problem. Two years ago, hemoved from his home in Duluth to an apartment inRice Lake, Wis., because he could no longer keepup a house and routine paperwork. He needed to benear a daughter in Wisconsin who could help him.

After his move, Qwest – which had acquired theformer Northwestern Bell – told him he’d have topay more for insurance in Wisconsin than he paid inMinnesota. With the extra financial burden, he nowwonders how he will afford to fix the brakes on hiscar.

“I feel like we’ve been let down,” Petersonsays.

Peterson is not the only one feeling that way.Many of Qwest’s employees were absorbed fromcompanies Qwest purchased, and their cultureswere different, says Dick Caldwell of Arden Hills, aformer speechwriter for U S West executives.

When people worked for Northwestern Bell,they agreed to work for lower pay than elsewhere,but they did it because the culture promised retire-ment security – including lifetime health insurance,says Caldwell.

“They should act honorably and continue pay-ing, rather than letting a threat hang over retirees,”he says of Qwest.

He adds that the extra health costs retirees arenow bearing is a slap in the face to those who ralliedto Qwest’s defense about a year ago.

Qwest wanted to offer long-distance phone

service to customers, and the company had to getapproval from state regulators. Retirees were calledupon to urge regulators to help. They made the pleafor Qwest so the company could keep payingpensions and health benefits, Caldwell says.

Just a short time afterward, retirees receivedwhat Tom Lee of Hopkins calls “our horrifyingHalloween letter.” Mailed in October, the letter fromQwest told some retirees that they would have tostart paying 20 percent of their health insurance.

Qwest declined an interview for this story, butin a written statement said, “In an age of ever-increasing benefit costs and an extremely competi-tive marketplace environment, it has become neces-sary for Qwest – like other major U.S. companiesincluding AT&T, BellSouth and SBC – to modify itsbenefit plans for retired employees.”

Under an accounting rule, companies are re-quired to book their expenses for future retiree bene-fits years before the employees leave the company.Then, if the benefits are changed and will cost acompany less in the future than earlier anticipated,the company can log the savings as income. Theprocedure is not one companies publicize, andIBM* declined to discuss it.

Most companies are free to cut benefits at willas long as their documents say they might do it, saysMinneapolis attorney John Nichols.

But most people planning for retirement don’thunt through the legalese and consequently aretaken by surprise.

“I was dumb enough that I didn’t read every-thing,” Lee says. Instead, on the day he retired at age58, “I jumped up in the air and clicked my heels.”

(U S West retiree and former Guardian editorDick Caldwell is shown in page-width photo,opening a box of mailed prescription drugs. SaidDick: “I was hoping they’d use the shot of mewriting at my computer.” He is mid-way throughhis book, “The Assault on the American Dream,”on retiree and broader societal issues.)

*Earlier reference

The Retiree Guardian / Summer 200414

IN THE MEDIAIN THE MEDIAFrom media coverage around the region and nation.

Rocky Mountain News, May 22

Qwest Honchos Still Don’t Get itPlenty of companies are taking serious steps to

meet shareholder demands for better corporate gov-ernance. Dell, Disney and even the New York StockExchange are among the growing number of U.S.firms that have reformed their boards or separatedthe tasks of chairman and CEO to protect againstmismanagement. On the other hand, we have Qwest,which seems to be running in the opposite direction.

Rocky Mountain News, May 1

Nacchio’s Showboating Stole theSpotlight as Qwest Began Sinking

(Ex-Rocky reporter Lisa Everitt was tossing outa lot of dot-com-era promotional artifacts when shecame across a can of blue paint Joe Nacchio senther. Jersey Joe had held a news conference to unveilQwest’s new blue logo, and told Everitt, who inter-

rupted a painting project and showed up at theimpromptu event with paint in her hair: “If you getQwest on the front page again, I’ll send you agallon of cobalt blue.” Excerpts of her commentsfollow.)

“Reporters are supposed to be objective, but itwas hard not to drink the Internet Kool-Aid. And atQwest they brewed up Kool-Aid by the gallon anddelivered it via the oversized persona of CEO JoeNacchio. . . I talked to him a lot in those days,because Qwest had a publicity operation that wassecond to none. They also had an annoying habit ofclosing deals on the weekend.”

“Not too long after Nacchio’s departure in2002, three former telecom reporters were loungingin someone’s back yard, quite at leisure because,having left the News for greener dot-com pastures,we were all unemployed. We remembered deridingInternet companies in the newsroom, than writingstories that appeared to take them seriously –because, after all, we weren’t supposed to insertopinions.”

TRUJILLO IS‘AGENT ORANGE’ NO MORE

Sol Trujillo, U S West’s last CEO and the man who took Joe Nacchio’s $40 billion offer for

Qwest, quit as CEO of Orange SA, a unit of France Telecom, in March, after only 13 months

on the job. Bloomberg News reported on March 31 that the move “is part of broader changes

across the France Telecom group,” quoting spokesman Stuart Jackson. France Telecom took

over the mobile-phone unit in 2003. Trujillo has been replaced by COO Sanjiv Ahuja.

Wyoming-born Trujillo spent 26 years with U S West, including two as CEO. He left after

clashing with Nacchio.

RETIRED Arizona February 2004 Anderson, Ramona Barnes, Margaret Cardella, Cheryl Carr, Robert Coppus, Dorothy Jarvis, Jana March 2004 Atwell, Joellen Baker, Carol S Evans, Minnie M Gabriel, Rocky C Galaway, Howard Robles, Rosa L Rzewnicki, Raymond Sanner, Gayle M Skillman, Quindolyn April 2004 Brown, Keith E Dedmon, Janet L Garduno, Constance M Garver, Donnie L Gersitz Cherlin, Bernice Gilmer, Michael W Hogue, Susanne M Lahale, Christine L Pangaro, Judy T Pina, Margarite G Prather, Lindsey Nicole Rose, Barbara C Scudder, Dianne M Velimirovic, Judith L Williams, Michael V Zwickl, Pamela A Colorado February 2004 Arellano, Larry Baird, Judith Bowler, Thomas Dalton, Emery Esmiol, Clifford Flom, Marvin Groen, Lynn Kennedy, Robert Raglon, Sharon Richardson, James Rogers, Landa Sitch, Paula Vaida, Mickey

Waddell, William March 2004 Baird, Jeannette M Busby, Linda L Ermish, Rodney A Griffith, Janet E Hamilton, George K Hammond, Terry L Hefenieder, Robyn Holt, Julia M Layton, Peggy A Pepion, Gaylene C Sewolt, Lori A Smith, Gary S Stuber, Judy L April 2004 Arguello, Julia L Bechtold, Virginia Clough, Dale A Darby, Mary M Flores, Peter P Harrod, Bruce A Hecht, Diana Kraas, Karen Mascarenas, Carl Meckley IV, Daniel G Pulanco, Jacob E Redlin, Catherine A Sodia-Plemons, Luanne Vanderploeg, Leon J Idaho February 2004 Hartman-Weirich, Jeanette Montana February 2004 Jackman, David March 2004 Detling, Leo F Duncan, Gary S Newman, Bonnee April 2004 Mycke, Kirk R Ross, Keith W Nevada March 2004 Edwards, John A New Mexico

February 2004 Lucero, Bernadette Montoya, Carmen Silva, Nancy March 2004 Bachicha, Isabel R Trujillo, Georgia I Wakeham, Frederick April 2004 Aranda, Joseph H Dixon, Joseph F Strunk, Donald R Oregon February 2004 Faust, Jay Henley, Bob Noble, Rachel Rettmann, Charlotte March 2004 Beechey, Kathleen Cartmill, Mark R Catton, Terry L Chew, Jauruey Enyeart, Craig K Galitz, Keith G Goss, William V Kiley, Patricia J Natale, Marcia L Paddock, Patti L Plotts, Gwen M Sagner, Kimberley J Sanchez, Gail L Waters, Susan C Waters, William J April 2004 Gillespie, Connie E Jones, Thomas L Mann-Green, Joan M Ramirez, Shelley

Valin, Gregory W Utah February 2004 Austin, Beverly Burton, Virginia Cirillo, Teresa Collopy, Phyllis Daniel, Thelda Greenland, Susan Horton, David Huff, Jack Long, Jerry Sagers, Gary Wymore, Patricia March 2004 Georgell, Mark L Mathewson, Shirley R Post, Marilyn Sickles, Yonanda M April 2004 Rasmusen, Margaret A Shepherd, Becky A Washington February 2004 Clark, Edward Gabel, Donald Heaney, Mary March 2004 Anderson, Robert J Borkman, John W Brown, Donald P Forrest, Francis J Fox, Richard T Gates, Archer L Goral, Michael L Hanson, Doris K Lee, William E Liston, Jean M Mullin, Robert A Shaw, Lorelie M Similia, Everett W April 2004 Arnold, Gary R Burk, Barbara A Colson, Elizabeth A Haight, Rodney P Howlett, Lorraine C Juliano, William J Kohler, Kathleen A Malone, Francis A Moore, Wanetca T

Mullin, Keven L Ray, Carol D Sheppard, Robert D Washington, Pamela D Williams, Susan G Woo, Mimi B Wyoming March 2004 Brown, Sandra K Hansen, Gary W Nichols, Loralyn S Snively, Kathleen Watkins, Paul H April 2004 Glassburn, Richard K Morgan, Randall D Rorabaugh, Roy E DECEASED Arizona February 2004 Brown, Dora Carr, Muriel Harden, Allen Nelson, Hazel M March 2004 Abraham, Patricia Brown, Ralph Carroll, Andrew Eglinton, James Elefante, Michael Moriarty, Edith Norberg, Betty Reese, Cecil Stockton, Robert April 2004 Bedford, Josephine Campbell, Ermalee Chase, Russell Gleim, Bernice Makarov, Donald Port, Algerd Steggs, Richard Turner, Gordon California March 2004 Johnson, Doris

milestones

The following information is also available on-line at the Qwest Human Resources web page: www.yourhrinfo.uswest.com/touch.shtml

NOTEBAERT (BUT NOT EMPLOYEES OR RETIREES) GETS A BIG RAISE

In a year in which CEOs of companies such as Papa John’s Pizza are declining raises and bonuses, and directing that managers and other employees receive raises instead, Qwest CEO Richard Notebaert got his base salary raised to a cool $1.1 million (from $613,462 in 2002), and hauled out a whopping bonus of more than $2.9 million. He also got $617,418 in “other compensation,” according to Qwest’s proxy statement, filed with the Securities and Exchange Commission in March. That’s more than twice the 2003 bundle, of $252,126. And he got options for two million shares of Qwest common stock, after getting five million in 2002.

(Colorado February 2004 Kriegshauser, William Luman, Lorraine Reed, Velma March 2004 Allen, Omer Bertollt, Helen Bosley, Harold Brus, Madelyene Carlson, Henry Faber, John Forgey, Helen Jordan, Doris Lowell, Mildred Miller, June Morrison, John Ratekin, William April 2004 Chaffin, Ruby Denton, Dora Deschane, Felix Dreith, Mary Ehrman, Marjorie Freed, George Genova, Josephine Hagan, Charles Johnson, Walter Madsen, George Miller, Jessie Reynolds, Mary Salum, Marjorie Sheridan, William Smith, Charles White, Barbara

Idaho March 2004 Clark, Katherine Knight, Robert April 2004 Hartwell, Thurlow Rauch, Anna Robertson, Verne Strand, Robert Woods, Ruby Montana February 2004 Foster, Sandra March 2004 Mayer, Annie Roullier, William Thompson, L April 2004 Haigh, N Nevada March 2004 Browning, Ronald New Mexico February 2004 Finley, Connie Holland, Eual March 2004 Hill, William

Milks, Marjorie Patrick, Elsie April 2004 Taylor, Vince Oregon February 2004 Stephens, F March 2004 Carpenter, Eugene Dentler, Jeanette Gignac, V Jones, B Lybarger, James Schacher, L Tremayne, Gail Tripp, D April 2004 Burns, Franklin Deines, Kathryn Holmes, R Houser, Mary Lamphear, Julia Leonetti, Wayne Miner, H Shaffer, Glen Vanatta, Kathleen Voigt, R Utah February 2004 Bowen, Paul Hagen, Helen Summers, John

Thompson, Eudene March 2004 Clark, Ruth Haselman, M Ledingham, Jackie Lowther, Bernice Malin, Beverly Millard, Gereald Stark Della April 2004 Garff, O Hill, Robert Hutchings, Howard Olsen, Fayne Schwab, Elouise Stocking, Allen Washington February 2004 Bostrom, W Briggs, D Dickman, H Minor, Robert Pearce, R Pittman, K March 2004 Clarke, Earle Dalzell, Hillis Eagle, Gerda Flory, Myrna Hegdahl, R Holt, R Isler, R Johnson, O Kiefer, B

Kirtley, Barbara Lang, R Lewis, H Miesner, R Numair, B Numrich, H Schneider, Fritz Souffay, L Stepney, Mae Stone, Marcus Wong, Lola April 2004 Cook, Janeen Dittmer, B Gear, Helen Greenlaw, John Hastie, Alvin Hawley, Richard Hicks, Mary Jabus, Marilyn Lamb, Gloria Lumbar, Howard Moore, J Mosier, D Rickbeil, N Ritchey, Angie Rumsey, Bettie Wade, Harold Woodward, Daniel Wyoming February 2004 Daniels,Gilbert Swaim, Lois March 2004 Reed, Mary

milestones

The following information is also available on-line at the Qwest Human Resources web page: www.yourhrinfo.uswest.com/touch.shtml

Montana Town Meeting To All Montana Retirees: There will be a meeting at the Red Lion Colonial Inn in Helena on July 22, 2004 from 10:00A.M. to 12 noon. Fea-tured speakers will be: Donnetta Mitchell, Utah president and area chair; Nelson Phelps, AUSWR president and executive director; Howard Rickman, director of retiree advocates; and Curtis Kennedy, our attorney. They will fill us in on the latest developments affecting retirees plus answer any questions you have. I urge all of you who possibly can to attend this important meeting. Also, we have found in the past year that many surviving spouses of retirees have had problems with or just don’t know what their entitlements are, so Jack Saunders has agreed to help them or a beneficiary. Jack’s phone number and email address are listed under Board Members on the following page. If retirees are not sure what a spouse’s entitlements are, please contact Jack. Thanks Jack for undertaking this important function. Don Archibald, Montana president

Annual Meeting in Salt Lake City

The annual meeting of the Utah/Idaho/Montana AUSWR is scheduled for September 18, 2004 from 10:00 A.M. to 12:00 Noon. It will be held again at the Hillcrest Junior High School, 126 East 5300 South in Murray,. Utah. (That’s just South of IHOP on State Street.). Featured guest speakers will be: Nelson Phelps, AUSWR president and executive director and Curtis Kennedy, Attorney. Refreshments will be served beginning at 9:30 A.M. Please mark this date on your calendar now to attend this important meeting . Donnetta Mitchell, Utah president and Utah/Idaho/Montana area chair

Letter from Membership Chair

Having served as the president of the local chapter (7704) of the Communications Workers of America (CWA) for many years, I now find myself being contacted by several people who question why I am involved with AUSWR—an organization that some perceive to be “just for management.” I want to take this opportunity to clear up the misconception about who the AUSWR represents and point out that the CWA represents active union and non-union employees. When we retire, there is no separation between man-agement and non-management, union and non-union. We are all one , and we need to get behind the AUSWR—an organization that is fighting very hard to protect the current and future benefits of ALL retirees. In my current position as membership chair for AUSWR, I encourage all retirees to get involved with AUSWR. Attend the annual meetings, read the newsletters, contribute financially and do your part to ensure that the benefits we worked so hard to get, after retirement will still be there down the road for all of us. Maxine Hughes, membership chair—Utah/Idaho/Montana AUSWR

MEMBER DONATION/UPDATE FORM—AUSWR Association of U S WEST (Qwest) Retirees—Utah/Idaho/Montana

Name_______________________________________________________________Date___________________________ Address _________________________________________________Chg Addr [ ] Telephone______________________ City_________________________________State_______ZIP___________-______email__________________________ [ ] Retiree Year Retired or Expect to Retire ____________From State____________From Company__________ [ ] Active Employee [ ] Surviving Spouse I am willing to________Serve on the Board of Trustees ________Be on the Calling Committee

Please make checks payable to: AUSWR and mail to: AUSWR c/o Leone Rogers 1132 E. 2700 S. #33 Salt Lake City, UT 84106-2643 AUSWR-Utah/Idaho/Montana is a non-profit tax-exempt organization but dues are NOT deductible on tax returns. Records are kept at 6138 Garden Gate Dr, West Valley City, UT 84128. (Please enter comments on reverse)

Amount ____________Administration & Newsletter ____________Legal & Legislative Fund ____________Total Donation

Board Members and Contact Information UTAH President Donnetta Mitchell (donnetta.mitchell@att.net) 801 269-9997 Vice President Hy Bradley (bradleyhy@mindspring.com) 801 543-4488 Treasurer Leone Rogers 801 484-9353 Sec/Data Base/News Susan Johnson (dick.sooz@comcast.net) 801 963-6220 Govt/PUC Rep Paul Sjoblom (drifter@qwest.net) 801-455-1141 Retiree Advocate Dick Johnson (dick.sooz@comcast.net) 801 963-6220 Retiree Advocate Byron Lemmon (96th.ESGR@usarc-emh2.army.mil) 801 295-4653 Membership Chair Maxine Hughes (maxinephughes@msn.com 801 255-4469 Salt Lake Area Rep Steve Linton (linton1@berite.com) 801 268-2855 Central Utah Rep. Ralph Walters (waltersrg@att.net) 801 375-6449 Northern Utah Rep Verla Elwood (verlaelwood@aol.com) 801 782-5800 Southern Utah Rep Dave Chapman (dchapma@infowest.com) 435 634-1301 Email Coordinator Edith Young (sis2@comcast.net. 801 484-2098 Public Relations Eve Mary Verde (everde@kued.org) 801-261-3333 Advisor Marva Alexander (malex2@uofu.net) 801-263-3877 Advisor Ralph Bayles 801-484-6299 Advisor Dianne Chidester (polkadothorse@aol.com) 801-292-6540 Advisor Elna Johnson (elnacj@msn.com) 801-269-9555 Advisor Gerda Rosenberg 801-295-2756 Advisor Lorraine Young (lorikay@xmission.com) 801-487-0240

IDAHO President Gary Lewis (mydodo@msn.com) 208 888-4510 Govt Contact Gary Lewis 208 888-4519 Membership/Email Norris Lynch (nlynch@velocitus.net) 208 343-4059 Retiree Advocate Shirley Moss, (samoss@velocitus.net) 208 342-3449 MONTANA President Don Archibald (rayce511@msn.com 406 457-9123 State Coordinator Bob Fifer 406 442-7976 Retiree Advocate Terry McDonald (montanamac@mt.net 406 442-0725 Membership Lois Ranf (lranf@msn.com) 406 227-9255 Calling Committee Vi Clements 406 442-4299 Communications John Secor (jsecor@imt.net) 406 443-3215 Email Coordinator Dee Patton (judee@in-tch.com) 406 443-4597 Billings-Hardin Gus Frazer (dcgf@webtv.net) 406 656-1837 Bitterroot Valley JoAnne Salyer 406 777-2246 Bozeman-Livingston Mary Lou Aicher (aicher@imt.net) 406 586-4044 Butte-Anaconda Bob Evans (aa7lu@montana.com 406 723-6270 Glendive-Baker-Glasgow Charles Woods (jwoods@mcn.net) 406 365-2837 Great Falls Ralph Brackett (ralphbrack@aol.com) 406 453-8334 Helena Jack Saunders (bertiesaunders@qwest.net 406 442-2011 Missoula Tom Simpson (thomass@cybernet1.com) 406 642-3966

Summer 2004 / The Retiree Guardian 19

Note to Members

Please notify us of address, phone number and/or email changes. Email dick.sooz@comcast net, phone 801-963-6220, or mail to the address on the back of this newsletter. You may also notify your State Membership Representative or any officer listed under Board Member Informa-tion at the left. Snowbirds should let us know each time they move, since we can only keep one address at a time in our data base. You may use the above form for donations, changes as mentioned above, or you can give it to someone who is not yet on our mailing list. If you are interested in receiving informa-tion on an ongoing basis about Association activities, please send us your email ad-dress. To keep up-to-date with information con-cerning your association, Qwest, or retiree information in general, log on to our web site:

www.uswestretiree.com www.qwestretiree.com

.

The Association of U S WEST Retirees (AUSWR) 6138 Garden Gate Dr. West Valley City, UT 84128-2590 Forwarding Service Requested

NON-PROFIT U S POSTAGE

PAID SALT LAKE CITY,

UTAH PERMIT NO 57

Utah/Idaho/Montana Edition

Annual Meeting Saturday, September 21, 2004 at 10:00A.M.

Hillcrest Junior High

126 E 5300 South Murray, Utah