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A Message from the President

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A Message from the President ISSUE 2 2005 Colorado/ A MESSAGE FROM THE PRESIDENT PRESIDENTS LETTER Dear Fellow Retirees, I recently sent the letter below to all retirees who have an e-mail Qwest recently announced that the 2005 Annual Meeting will be in Denver on May 24, address, and for those of you 2005 at 10 AM at the Denver Center of Performing Arts. Proxy ballots and the Annual who do not, I am including the Report will be mailed to stockholders on about April 14, 2005. letter in this newsletter. Retirees are sponsoring two proxy proposals that will be voted on at this meeting and we are asking that if you own Qwest stock that you vote your shares to support these Retirees sometimes ask why as proposals. an organization do we get in- volved in proxy proposals at the The first proposal, Stockholder Proposal No. 4, requests the Board adopt a policy to Qwest Annual Stockholder meet- seek shareowner approval for future Supplemental Executive Retirement Plans ing, and the answer is fairly (SERPs) for senior executives. straightforward. We know that all of us have a highly vested The proponents are asking for this approval because of the excessive pension benefits stake in Qwest remaining finan- that accrue to senior executives over and above what is accumulated in the regular em- cially viable, and this requires ployee pension plan. Under this plan Dick Notebaert, Chairman, and Oren Shaffer, Chief Financial Officer, would accumulate an estimated lump sum payout of $12.1 good corporate governance. The million and $3.1 million, respectively, assuming that they stay with the company until issues that we select to submit age 65. reflect areas in which we feel that the Qwest Board of Direc- This level of retirement compensation is unwarranted, and therefore we ask you to vote tors have not sufficiently listened your shares FOR this proposal to put some checks and balances on the Board Compen- to stockholders in implementing sation Committee and the outlandish retirement benefits granted to senior executives. sound practices, and we craft proposals to address those per- The second proposal sponsored by retirees is Shareholder Proposal No. 5 which re- ceived deficiencies. Many other quests that the Board adopt a policy that in the event there is a substantial restatement stockholders seem to agree with of earnings, that all legal remedies will be pursued to have performance-based compen- sation and bonuses paid to those executives recovered for the benefit of the company. us, based on the number of shares that have been voted FOR The proponents believe that compensation should be closely tied to actual financial our proposals in the past and performance-and that the Company should seek to recover for shareholder any per- those we anticipate will be vot- formance-based compensation that is awarded due to fraudulent or erroneous financial ing with us this year. If you are a results. In other words, if you didn’t really earn it, you ought to be required to return it! Qwest stockholder, please take Please cast your votes FOR this proposal. the time to vote your shares FOR our proposals as well. Thank You. Mimi Hull Mimi Hull, President of the Association of US West Retirees Retiree Guardian Page 1 2005 issue 2 Colorado/Wyoming Activities AUSWR Brochure for 2005 Other Visits with Retirees On pages 9 and 10 of this newsletter is a copy of the We also would like to visit with the retirees in the new brochure for 2005, describing the benefits of Cheyenne Area during June if possible. We are belonging to the AUSWR and NRLN. There is also hoping we can join a Pioneer meeting there and have an application blank for a friend who is currently not been talking with Bill Foy, Area Representative. a member. We urge you to cut out this page and to use this information. Another version of the Qwest Pioneeer Website Report on Deaths and brochure will be available in the future from the Retirements Area Representatives. Since September of 2004, the Qwest Pioneer organization has taken over the reporting of all Visit to Colorado Springs Area Retirees retiree deaths and current retirements, when this Recently Betty Moore, Harvey Hoffman, Jack Ott report was abandoned by Qwest Human Resources. and I traveled to Colorado Springs to visit retirees at Their website address for this is a Pioneer luncheon meeting. Jack Artman, Area www.qwestpioneer.org/about/deathsandretirements.a Representative arranged this visit. In addition to the sp. They provided the last four months of 2004 by delicious buffet luncheon they had prepared, we State and Month of occurrence. were allowed to speak to the group about our organization and to answer their questions. We also However, the report for the first three months of signed up some new members. We thank the 2005 is shown for the total quarter, with no month Colorado Springs Pioneer retirees for their gracious given for these listings. Retirees have been hospitality. receiving this information regularly and it has meant a great deal to them. The people listed were the Pueblo Area Visit Planned employees they worked with and were friends with On May 27th a group of us will travel to Pueblo at for many years. This information is important to the invitation of Jane Gray, Area Representative, to them. We really urge the Pioneer organization to meet with retirees in her area. separate this information by state and month, as previously reported. Hazel Floyd CHANGES TO ADDRESS, TELEPHONE NO., OR E-MAIL ADDRESS If you have a change in your postal address, telephone number, or e-mail address, please use the form ( An- nual Dues Payment or Notification of Change) at the top of the inside back page of this Newsletter to no- tify us. Please send the changed information to the address shown at the bottom of the form. ALSO, your membership expiration date is included on the mailing address of this Newsletter. If you see that your expiration date is near, please use the Top Form to submit your annual dues, unless you have already done so. IF YOU KNOW any prospective members who have not yet joined the Association, please make the bot- tom form (New Member Application) available to them. IMPORTANT TAX INFORMATION The Association of U S WEST Retirees CO/WY is authorized as a nonprofit tax-exempt organization under Section 501(a) of the Internal Revenue Code. However, dues and donations are NOT DEDUCTIBLE on your personal tax return. Records are available via written request at P.O. Box 27027, Denver, CO 80227. A portion of your dues and donations goes to support the National Retirees Legislative Network (NRLN) in Washington, D.C. Retiree Guardian Page 2 2005 issue 2 A VIEW FROM WASHINGTON A.J. (Jim) Norby President NATIONAL RETIREE LEGISLATIVE NETWORK, INC. As I’m sure you all know by now, the Plan assets to be allocated through transfer NRLN’s mission is to do whatever we can out of the pension plans for other uses at the Congressional level to promote leg- have eroded the strength of pension plan islation that protects retirees from the en- assets. Clearly, the intent of Congress in croachment of our incomes while in retire- enacting ERISA was in large part to assure ment. We have interpreted this to include that Plans and their assets were to be used pensions that we earned and health care solely for the benefit of Plan beneficiaries. benefits we were promised. Even though Unfortunately, many exceptions have been our charter, in the strictest interpretation, carved away from the assets in one way or does not include Social Security and Medi- another. (e.g. Congressional action and care issues, we have decided to at least court decisions.) Additionally, and unfor- study, debate, and arrive at a position on tunately, it is permissible to allow a pen- the Social Security issue. This process has sion fund to pay for “early outs” and their just begun. In the next issue of the NRLN monetary enticements. Also, pension newsletter, The Focus, will be an article funds have been tapped for voluntary lay- that discusses the history of Social Secu- off bonuses, sometimes amounting to as rity. We, at this point, take no position on much as a year’s salary or wages. This the many proposals made on Social Secu- cost is normally paid for from corporate rity. We have, however, formed a committee of outstanding, operating expenses. And, finally, such added payments are not well-read retirees who, in a bipartisan way, will study and moni- accounted for in the calculation of the liabilities and, thus, are tor the debate. Later, the NRLN and its Board of Directors will understated. Surplus pension funds also may be used to establish carefully consider alternate positions. This is going to be a con- health care Trusts 401(h). This has the effect of lowering the tentious, perhaps divisive issue, but we must step up to the plate pension fund base which makes it more vulnerable to under and take a stance. funding and less able to weather a financial market turn down. The company reaps the benefits of dual advantages of offering I would like to discuss in this issue of “The View” a legislative retiree health care while not having to contribute current reve- initiative that the NRLN has undertaken. The reason that so nues to pay for it. many of us find that we’re in a financial bind is that while we were tucked away in retirement tending to our grandchildren, The plot thickens. Under current law the company is not re- our family and gardens, our former employers were off to quired to report detailed information on how it calculates its Washington to see how they could change to their advantage the funding status.
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