Verizon Communications Freezes Defined Benefit Pension Plan

State Journal, The, December, 2005 by Anonymous

Verizon Communications Inc. has announced a restructuring of retirement benefits for active management employees covered by a defined benefit plan. The restructuring is part of a plan to reduce costs by $3 billion over 10 years.

The employees will retain pension benefits they already have earned and continue to be eligible to grow into their early retirement pensions. They will receive an 18-month enhancement June 30, 2006, to the value of their pension and retiree medical benefits, the company said.

In addition, the company will increase matching dollars for its Management Savings Plan 401(k) for these employees, as well as for MCI managers who join Verizon after the close of the planned Verizon/MCI merger.

Under the restructured benefit plans, after June 30,...

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