BELLTEL RETIREE The Official Newsletter for Union and Management Retirees and Employees of Bell Atlantic, GTE, Idearc/SuperMedia, NYNEX, and its Subsidiaries. Paid for by contributions from Verizon and Idearc/Supermedia retirees.

Winter 2012-13 Volume 64

Spotlight: Verizon Retirees Under Economic Assault Retirees Mount Legal Challenge Against Former Verizon Retirees Verizon Transfer of 41,000 Pensioners Transferred To Idearc/ Supermedia Lose Healthcare n a financial bait and switch more are being given no choice, no voice and typical of a used car lot, Verizon no protection in the transfer of their Benefits & Life Insurance Iblindsided tens-of-thousands of its pension assets, we are calling upon the By Curtis L. Kennedy own retirees on October 17th when it company to reverse this action and halt Attorney-at-law disclosed the sale of 41,000 management this predatory business transaction that ffective January 1, 2014 Verizon retirees pensions to Pru - will impact many retirees who were transferred dential Insurance Com - retired Americans, Eagainst their will to a new under - pany of America in who labored a life - nourished company will lose healthcare exchange for $7.5 bil - By transferring and time to fund their and life insurance benefits. ALL lion in pension assets. earned pension bene - OTHER VERIZON RETIREES Following the pension converting the 41,000 fits.” COULD BE NEXT. This article by the spin off announcement, The Association of Association’s special legal counsel Curtis the Association immedi - pensions to an BellTel Retirees Inc. L. Kennedy breaks down the issues you ately sought the counsel has retained experts need to be aware of and concerned of insurance and annuity insurance company, and counsel and is about. industry experts for their moving forward with What Was Idearc Truly analysis of the plan. We Verizon retirees lose legal action on behalf Worth When the Spin-Off from asked, “is this change of the tens of thou - Verizon Occurred? good or bad for retirees?” their Pension sands of impacted We all know about the pitiful conse - The experts’ response retirees. If this trans - quences that have been bestowed on the was not reassuring. Benefit Guaranty action is completed retirees who had been involuntarily If the plan transfer is before the New Year, transferred from Verizon to Idearc/ not halted, beginning in Corporation as Verizon expects, SuperMedia as part of the 2006 Spin- January 2013, Prudential retirees will be left Off transaction. In no other business will provide retirees with protections with the short end of transaction has Verizon transferred insurance annuities – not the stick. retirees. In the Murphy, et al., v. Verizon pensions — that will eliminate Verizon’s The transaction would involve Veri - Communications Inc., et al. , case, the ERISA mandated fiduciary responsibili - zon, a fortune 5 company transferring its Class of 2,750 persons retired before the ties to retirees. This transfer will also fiduciary responsibilities to over 41,000 November 17, 2006 Spin-off of Idearc wipe out the federally insured pension retirees to a single entity, Prudential, in seek to be restored into Verizon’s spon - safety net provided by the Pension Bene - exchange for $7.5 billion in cash. Should sored retiree benefit plans. fit Guaranty Corporation (PBGC). that insurer experience a default or asset Presently, there are two court cases Association President C. William short fall, the 52 state insurance guaranty pending in the Dallas federal court Jones said, “On behalf of 41,000 Verizon associations would serve as the only attacking the Spin-Off transaction. Of retirees scattered across the country, who (Continued on page 6) course, one case is for the benefit of all transferred retirees. The other case that all retirees ought to pay attention to is SAVE THE DATE! the major creditors’ lawsuit against Ver - The Association of BellTel Retirees will host its 2013 izon. The Spin-Off transaction not only annual member meeting in Annapolis, MD eventually led to the creditors’ signifi - on Friday, April 19, 2013. We hope to see you there. cant financial losses, it caused retirees to (Continued on page 5) 2 BellTel Retiree Winter 2012-13 motto, “Own a Piece of The Rock” management retirees are being thrown would never go bankrupt. Remember out with the trash, by their former that when disasters like the recent Hurri - employer. Given the company’s track cane Sandy hit, the payouts from insur - record, more bad news is likely to occur. ance companies are enormous. At the Who’s next? end of October, MetLife, another so- Some members use the automatic called too big and secure to fail insurance monthly or quarterly payment system to firm posted a $954 million 3 rd quarter make donations. To those who have loss “to reflect the damage being done to been generous in the past, we must insurers’ annuity businesses by ultralow appeal to you to make another generous interest rates,” according to the Wall contribution now. President’s Message Street Journal ( MetLife Posts Loss on Remember, the Association of BellTel Annuity Charge 10-31-2012 ). Retirees is the only organization that is by C. William Jones A recent investigation by insurance willing and able to protect your financial and annuity industry experts consulted future. Please make sure that you do by the Association of BellTel Retirees your part to stop this impending disaster. am sure that you have heard that regarding the financial viability of this Verizon plans to sell off the pen - transfer raises serious issues. There is a Isions of 41,000 management long list of once prominent insurers who retirees to Prudential Life Insurance have gone under: AIG, Kentucky Cen - Company of America during December tral Life Insurance Company, Executive 2012 converting those ERISA protected Life, The Equitable Life Assurance Soci - pensions insurance annuities. This is ety (Equitable Life), and too many to Association of BellTel Retirees Inc. one more assault on the benefits that all list. That’s not the end of the bad news. UNITED, TO PROTECT OUR FUTURE of us worked a lifetime to secure. Published by: Association of BellTel Retirees Inc. It is possible that Prudential could then P.O. Box 33, Cold Spring Harbor, The major problem with this annu - transfer our pension annuities to another New York 11724 • (631) 367-3067 ity transaction is that once the transfer firm that might not be as robust as Pru - website: www.belltelretirees.org is complete, those 41,000 retirees will E-mail: [email protected] dential, leaving us hanging on by a Hotline: (800) 261-9222 lose both federal ERISA law protections thread. A 501 C3 IRS tax-exempt corporation and the safety net that the federal Pen - Your Association decided to take legal Circulation Exceeds 128,000 sion Benefit Guaranty Corporation action against Verizon before the annuity President and Executive Director: (PBGC) provides, should a pension C. William Jones (410) 310-8533 transfer is consummated. We will be Senior Staff Manager plan be terminated. The PBGC is a facing a huge up-hill battle and Verizon Christina M. Kruger (631) 367-3067 safety net that, presently, protects a 65 will spend many millions of dollars to Assistant Manager year old pensioner in the amount of defend their position. We have seen Susan Donegan (631) 367-3067 almost $56,000 per year. Board of Directors: them in action in the Murphy v.Verizon John M. Brennan, Chairman Once the annuity transaction is com - case wherein we contest the transfer of (201) 666-8174 plete, the only protection retirees will retirees to Idearc/SuperMedia. Verizon’s Jack K. Cohen, Executive Vice President have is a state-by-state patch-work of lawyers are paid over $600 per hour, per (914) 245-3129 unfunded “guarantee” organizations Eileen T. Lawrence, Chief Financial Officer attorney! (718) 229-6078 that would pay a lifetime benefit rang - This effort to defend our retirees will Robert Gaglione , Treasurer ing from $100,000 to $500,000, with be costly and we are depending on our (516) 676-0937 considerable small print, legal loopholes membership to step up to the plate and Pamela M. Harrison, Secretary and exclusions attached. After analyz - V.P. Union Relations (845) 225-6497 increase contribution levels. We need all Donald R. Kaufmann, Director (717) 398-2423 ing past claims we have determined that of those folks who have not financially David J. Simmonds, Director (732) 636-4847 those actual payouts are never close to helped in the past – and there is a lot of Charles F. Schalch, Director (610) 399-3626 the advertised level in each state. you — to join the thousands of faithful John Studebaker, Director (610) 296-0281 Some believe that a company, like John W. Hyland – Director (845) 490-0713 contributors and write that check or Thomas M. Steed – Director (914) 213-5909 Prudential with a secure sounding donate via our secure website. Vincent J. Maisano, Director (610) 872-9242 In 2006, it was 2,750 existing retirees Louis Miano, Director Emeritus (781) 444-8080 — Advertisements — of the former White and Yellow Pages Robert A. Rehm, Director Emeritus (516) 827-0801 All representations made in advertisements are Directory Division who were spun-off HAVE A QUESTION? solely the responsibility of the advertiser. The along with their pensions and benefits Call 800-261-9222 or Email: [email protected] Association of BellTel Retirees is not responsible to a doomed to fail company IDEARC. for any such representations. The Association Fast forward to 2012, and 41,000 Advertising Information does not endorse any advertiser. (631) 367-3067 Winter 2012-13 BellTel Retiree 3 Association Co-Founder and CFO Retires After 17 Years fter 17 years, Association Over the past 16 years, Bob of BellTel Retirees co- Rehm has personally logged tens Afounder and Chief of thousands of miles visiting Financial Officer Robert A. and speaking to retiree groups Rehm has retired from the board across the nation. His speeches of the Association. each year at the Verizon annual Prior to becoming a leading shareholders meetings to present retiree advocate, Mr. Rehm the Association’s proxy proposals worked for the New York Tele - have drawn frequent standing phone Company for 31 years. ovations. He worked in outside plant The effectiveness the group engineering and in the Buildings has achieved speaks volumes. Engineering and Management The Association is the first to Department and at divestiture, ever defeat a former Bell compa - he helped with real estate transi - ny in a proxy proposal. In 2003, tion to the baby bells. they received 59% of sharehold - In October 1995, a few years Robert A. Rehm conducts news interview to launch national ers’ votes to limit overly gener - after he retired from NYNEX, retiree earned health benefits awareness campaign in 2006. ous executive compensation Mr. Rehm received a call from a packages and golden parachutes. former colleague Bill Jones. The two “Bob Rehm was one of the people In 2007, it won a “say on pay” propos - discussed how retirees had not received you sought to confer with on major al. Verizon was the first major corpora - promised pension COLAs in over 5 decisions,” said Bill Jones. tion to institute that annual vote. Bell - years. Their dialogue progressed as they The NYNEX retiree leaders began Tel’s retiree shareholder campaigns have and other NYNEX retirees, decided to attending many small retiree gatherings led to Verizon making eight changes to take action. to inform and organize other retirees to its corporate bylaws or policies. support the cause. In Washington, the group spear - The formalization of the Association headed drafting congressional legisla - OUR MISSION: took off after the group collected 1,440 tion ( Emergency Retiree Health Bene - The Association of BellTel retiree signatures on a letter to NYNEX fits Protection Act) so former employers Retirees Inc. is dedicated to pro- CEO expressing their could not cancel or make post cancella - mote the protection and concerns. After NYNEX leaders turned tion cuts to retirees earned healthcare. enhancement of the pensions a deaf ear to the COLA requests, the Few would have expected the Associ - and benefits for all retirees and group incorporated as a non-profit and ation to grow from two NYNEX beneficiaries of the companies the rest is history. (Continued on page 9) and subsidiaries that make up the Verizon and Idearc/SuperMe- dia Corporations. The Association will convince Recover Investment Losses! the company to properly care for • Pension Buy-Out funds invested & lost? its thousands of dedicated for- • Stockbrokers mismanaged your money? mer union and management employees. • Let me help you! The Association will conduct (Cases on contingency basis only) activities designed to educate We have many satisfied BellTel Retirees as clients & elected federal, state and local representatives and promote the have effectively retrieved hard earned pension $$$ passage of legislation which will lost carelessly. protect and guarantee, rather Debra G. Speyer, Esq. who represents than invade our hard-earned Bell Retirees nationwide. 1-800-510 STOCK pension and benefits fund. www.wallstreetfraud.com 4 BellTel Retiree Winter 2012-13 Must-Attend Retiree Meeting – April 19, 2013, Annapolis, Maryland he Association of BellTel Retirees will have its 2013 annual member Tmeeting in Annapolis, MD a location that is central to a majority of members on the east coast. This is a must-attend event for all retirees. This critical meeting will be at the DoubleTree by Hilton Hotel, in Annapo - lis on Friday April 19 th . The gathering

starts at 8:30 am and will conclude at g r o . s i

noon. We encourage all retirees to l o p

reserve a seat ASAP that will enable you a n n A t to attend. The DoubleTree Hotel is i s i located at 210 Holiday Court, Annapo - V lis, Maryland 21401. City Dock in Annapolis, MD Annapolis is a 350-year-old historic Baltimore-Washington International Donegan c/o the Association of BellTel coastal city located on the Chesapeake Thurgood Marshall Airport. Retirees, P. O. Box 33, Cold Spring Har - Bay. In addition to getting to see friends, Nearby attractions to the hotel com - bor, NY 11724. former co-workers and other retirees of plex are the United States Naval Acade - Please make all checks payable to The the Bell System family, you will be my, the Annapolis Harbor Center, the Association of BellTel Retirees. Entrance briefed on the latest news related to the Maritime Museum, boat cruises around tickets and directions will be mailed to fight to protect retirees’ pensions and the bay, plus theaters, galleries, and much you closer to the event date. health benefits and have the opportunity more. The hotel is also offering BellTel Please note that hotel reservations and to dialogue with retiree association lead - members a special rate of only $109 dol - event reservations are separate, and a ers. lars for a reserved room, for those wishing reservation to one is not to another. All The 2013 meeting’s host-city offers to stay the night. members must register with the Associa - plentiful shopping, walking tours, and Reservations are needed if you want to tion to guarantee a spot at the meeting. places to eat. The hotel has an esteemed attend the 2013 Association of BellTel To also reserve hotel reservations at the restaurant called Ports of Call, with a fine Retirees meeting. To reserve a seat, please special rate of $109/night, please contact

atmosphere and reasonably priced food complete and send the early RSVP form the Double Tree Hotel direct at

and beverages for members to meet and below. Be sure to include the names of all (800)266-7631 or (410)224-3150. #mingle. The hotel is 30 minutes away those attending and return it with your Please give the reservation desk the code from the Annapolis Amtrak and the $5 per person registration fee to: Susan ABT when booking.

RSVP for Association of BellTel Retirees Annual Meeting Friday, April 19, 2013 at the DoubleTree Hotel 210 Holiday Court, Annapolis, Maryland 21401 A TICKET IS REQUIRED TO ATTEND I will attend the meeting in Annapolis, Maryland - # in party______Name:______Address:______Phone Number:______Email Address:______Enclosed is a Check for $______($5.00 per person) Please list your guest’s names and addresses:______PLEASE PRINT CLEARLY (You can list invitees names on a separate piece of paper if more than 2 are attending) A ticket will be mailed to each member and guest for admission. Please return this registration form and fee ASAP to: Association of BellTel Retirees Inc. c/o Susan Donegan / Box 33 Cold Spring Harbor, NY 11724 Winter 2012-13 BellTel Retiree 5 Spotlight: Verizon Retirees Under Economic Assault Lose Healthcare Benefits & Life Insurance court filings to date, and the parties are VERIZON Q3 (Continued from page 1) not yet done with their submissions. To illustrate the stakes, Verizon SHOWS GROWTH lose the security of their retiree benefits, Defendants paid just one of their eight erizon Communications especially health care coverage. expert witnesses over $5 million in fees! rd On October 15, 2012, the creditors’ Vannounced its 3 quarter fiscal Other experts have been paid well over 1 results for 2012. Verizon broke com - case of U S Bank, NA v. Verizon Com - million in fees. Not to mention the fees munications Inc., et al., went to trial in pany records by delivering the highest paid to the cadre of defense counsel. For number of retail customer additions the Dallas federal court, before Senior the trial, The Verizon Defendants Judge A. Joe Fish. This is the Bankrupt - in four years, which is attributed to arranged a special lease of office space significant increase in smart phone cy Litigation Trust’s case and U S Bank, nearby the downtown Dallas federal NA is the bankruptcy appointed “Litiga - sales and contracts. court. Verizon Wireless achieved $16.2 tion Trustee” and Plaintiff leading the Before the end of the year, Judge Fish creditors’ fraud case filed in the after - billion in revenue; an increase of is expected to make his ruling concern - 7.5% compared to 2011’s 3 rd quarter, math of Idearc’s bankruptcy. All of the ing Phase 1 of the creditors’ case. The Plaintiff’s claims arise out of Verizon’s and added 1.8 million customer outcome of the creditors’ case may have accounts. Verizon expanded its net - November 17, 2006 Spin-Off of its fail - very significant repercussions for the ing print and on-line Directories Busi - work, rolling out its 4G LTE service retirees’ Murphy case which also awaits to more than 250 million people in ness to Idearc Inc., now known as Super - rulings by Judge Fish. Media Inc. 419 U.S. markets. All of the important court filings for “Wireless achieved record prof - During Phase 1 of the trial both sides both the creditor’s case, and the Murphy cumulatively submitted about 750 itability in a quarter in which we case being funded by your retiree associ - reported the highest number of retail exhibits. Judge Fish heard testimony ation are posted on the Association of from former Verizon officers, former postpaid gross and net adds in four BellTel Retirees website. The critical years,” said Verizon CEO, Lowell Idearc officers, and John Diercksen, impact of these cases is vital for the Verizon’s executive vice president who McAdam. future protection of your earned retire - The company’s wireline division acted as the sole director of Idearc, ment benefits and rights. inside and outside legal counsel, repre - added 136,000 net new FiOS internet I urge every retiree to do two things: connections and 119,000 FiOS net sentatives of investment banks, rating 1) Pay close attention to these lawsuits agencies, financial advisors, solvency new video connections. Operating which impact your retirement rights revenues were $9.9 billion, a decline and economic experts about intimate significantly; rd financial details about Verizon’s directo - of 2.3%, compared with 3 quarter 2) Please financially support your 2011. ries business and efforts promoting the Association to the best of your ability, Spin-Off. Verizon Communication’s total so that the organization can continue to operating quarterly revenues were It’s a high stakes case, generating tons fight for your rights in the Murphy liti - of legal paperwork, over 600 separate $5.5 billion, compared to $4.6 billion gation and its other advocacy efforts. in 3 rd quarter 2011. Cash flow from operating activities totaled $24.8 bil - lion in the first nine months of 2012, THEY’RE IN THE $$$ compared with $21.5 billion in first t news deadline, after Verizon billion dividend to Verizon Commu - nine months of 2011. Verizon’s free cash flow rose to released their third quarter earn - nications and Vodafone Group. Veri - A $13.4 billion through third quarter zon Communications owns 55 per - ings, the company further announced 2012, an increase of 49.9%. It that Verizon Wireless, a joint venture of cent of Verizon Wireless and Voda - reported 56 cents in diluted earnings and Voda - fone owns 45 percent. per share, compared with 49 cents in fone Group, will pay out $8.5 billion in This recent cash payout will help 3rd quarter 2011. cash dividends to the two partners. Verizon Communications pay its quar - Since announcing the transfer of 41,000 retirees to Prudential, Verizon This is the second dividend pay terly dividends. announced that they would increase Verizon declined to say how it plans out from Verizon Wireless this year. their contributions to fund their In January, Verizon Wireless ended a to use the cash pay out and how much pension obligations by $2.1 billion policy of using cash to pay down their share of the payout would ($3.4 billion total). This eliminates debt, freeing up money to pay a $10 amount to. their pension requirements in 2013. 6 BellTel Retiree Winter 2012-13

Spotlight: Verizon Retirees Under Economic Assault Verizon Retirees Fight Back AT&T Pumps $9.5 (Continued from page 1) Mr. Jones said, “Retirees and their Billion Into Its Pension financial backstop. Prudential could also spouses, especially in states with the low - sell or transfer all or part of its ownership est protection levels, will be seriously of the annuity asset to another company. harmed and left with as little as two years While Prudential looks and sounds like a pension replacement in case of insurer solid insurance company, America’s his - default. Verizon’s pension conversion to ust days after Verizon, tory is littered with the carcasses of many a non PBGC insurance annuity offers once-great firms that imploded. The list zero protection or upside for tens of thou - announced it is spinning off is a who’s-who of once iron-clad and too- sands of Ma Bell’s orphans. If we don’t J41,000 retirees pensions and big-to-fail financial powerhouses: AIG, take swift action to protect ourselves the converting them to Prudential Insur - Kentucky Central Life Insurance Com - outcome can be financially devastating ance annuities, AT&T announced it pany, Executive Life, The for Verizon Retirees.” It is also unclear will contribute $9.5 billion in its pen - Equitable Life Assurance what happens to sion fund. AT&T pension plans retirees who move Society (Equitable Life), were underfunded by more than from one state to Lehman Brothers, Bear If we don’t take $10.2 billion at the end of 2011. Stearns and too many to another in the event AT&T plans to contribute 320 list. swift action to Prudential runs into Corporate retiree pen - trouble. Different million preferred class A dividends sions, like Verizon’s are state laws determine paying shares towards its 2013 pen - insured by the federal Pen - protect ourselves when a particular sion contributions. The contribution sion Benefit Guaranty guaranty association of so much stock into the plan Corporation (PBGC), up the outcome can gets triggered and requires approval from the U.S. to the limit of $56,000 per most guaranty associ - Labor Department. AT&T expects to be financially ations are under fund - year, per retiree. By trans - gain approval before the end of 2013. ed or unfunded rely - ferring and converting the The liquidation value of each share is 41,000 pensions to an devastating for ing on future premi - $25 per share and each pays $1.75 in insurance company, Veri - um assessments to zon retirees lose their Verizon retirees. fund unknown liabili - cash per year in quarterly installments PBGC protection,which is replaced by ties. In the two most significant insur - equal to $560,000 per year. the varying and sometimes insufficient ance company insolvencies involving the According to an AT&T state guaranty association coverage which Executive Life Companies, policyholder spokesperson, “We’re making this is determined by state of residence and benefits were cut substantially, some by as contribution, which is many times ranges in amount from $100,000 to much as 66 percent! above our estimated required funding The Association is asking ALL of its $500,000. for 2013, at a time when many com - retirees to TAKE ACTION TODAY Eight states and one territory – AK, panies have eliminated their pen - AZ, IN, MA, MS, MO, NH, NV and and financially support the organiza - sions.” Before AT&T’s announce - Puerto Rico — limit coverage for annuity tion, which expects that the legal fight holders in case of a default or shortfall to against Verizon, in order to save our ment to contribute $9.5 billion, their a lifetime maximum of $100,000. pensions will be costly and protracted. required contribution to the pension 28 others including Maryland and All retirees need to STAND TOGETH - fund was $300 million for year 2013. Texas go up to $250,000 lifetime cover - ER NOW against these financial dirty This AT&T pension trust has age (Full List includes: CA, CO, DE, HI, tricks being played with OUR PEN - 360,000 beneficiaries. ID, IL, IA, KS, KY, LA, ME, MD, MI, SIONS that WE WORKED A LIFE - If approved, this transaction will TIME TO EARN. MN, MT, NE, NM, ND, OH, RI, SD, allow AT&T to maintain its current We must not allow ourselves to be TN, TX, UT, VT, VA, WV,WY); cash flow levels while lowering its tax. 10 states and District of Columbia use bullied and taken advantage of. Make The Communications Workers of a $300,000 top end (AL, AR, FL, GA, a contribution today. Ask all of your NC, OK, OR, PA, SC, WI); children to write a check to enable this America said they are “pleased to see Just 4 — New York, New Jersey, Con - fight for our financial life lines. AT&T is taking steps to further necticut and Washington State – offer Together and united we can make a dif - strengthen its defined benefit pension coverage of $500,000. ference. fund.” Winter 2012-13 BellTel Retiree 7

Spotlight: Verizon Retirees Under Economic Assault We Need Each Retiree to Recruit 1 Dues Paying Verizon Retiree This Month – Strength Comes in Numbers Dear Fellow Members, You are our only source of revenue, and as we plan for next In our Fall 2012 newsletter, we reported that as of June year and this NEW FIGHT thrown at retirees’ feet, we know 30 th we had received $561,073 in contributions, with an that we will need more and more support. It is sad that we overall average of $30.40, and that we were within 70% of our have come to legal battles, but that is today’s world – a world 2012 fundraising goal of $800,000. in which corporations make decision for their bottom line, Since then you have continued to send financial aid, as well without considering the pain it will inflict on retirees, the very as heartfelt messages of support for our volunteer work. Here people who built their companies. Sadly, we are a statistic… is the status as of Nov. 5th: part of a bottom line profit formula. 2010 2011 11/5/2012 Please continue to help us maintain what we earned. Give Contributions $744,532 $771,464 $791,085 what you can, and spread the word to others. We are the # Of Contributions 26,691 28,158 25,976 only non-profit organization working to help you, and our Average $27.62 $27.40 $30.45 board members donate thousands of volunteer hours each year. We say it often: we are grateful for your continued support – Enclosed is a donation card, which lists your last donation and more than that for your loyalty and generosity. We are date next to your name. If you have given a contribution this closing in on the target budget set at the outset of 2012, and year, THANK YOU. If you haven’t done so yet, we really urge rest assured the economic protection of our retirees’ future is you to do so. vital – and it is our only goal. The total number of retirees making contributions has fall - As we compose this newsletter here in New York City and on en off since last year, by 2,200. Not only, do we need to reac - Long Island, we are dealing with the powerful after effects of tivate those 2,200, but secure the support of every retiree who Sandy, and now a Nor’easter — as are many of our members. cares about the future of their pensions and earned healthcare Many have had severe damage to their homes, as have some of benefits. our volunteer board members. I am sure you have seen the news We note that many members are switching to monthly coverage – it is heartbreaking. But we are Telephone people – donations in order to increase their total support. You have we do not turn our backs on each other or our communities. the ability to give recurring donations using our on-line sys - Just before the hurricane, another disaster broke: Verizon tem at www.belltelretirees.org and click on DONATE NOW announced it was spinning off, transferring and converting button. We encourage you to use that option. But no matter Our ERISA Protected Pensions in exchange for insurance what option you choose, thank you once again for your finan - company annuities from Prudential. The diminished protec - cial and moral support. Your cards and letters are very valu - tion this provides ALL OF US requires retirees to stand up able to us – and keep us going. and fight back now! Thank you, Eileen Lawrence # Without your support, we simply couldn’t go on or take on this new and necessary battle. ASSOCIATION OF BELLTEL RETIREES INC. P.O. Box 61, Glen Head, NY 11545-0061 Yes, I want to support the Association of BellTel Retirees Inc. in our fight to protect the pension and benefits of all retirees and active employees. Enclosed is my tax-deductible donation: o Other $______o $100 o $75 o $50 o $36.50 o $30 We appreciate any amount you can donate $______Or use your credit card. Just fill out the information listed below. Visa MasterCard Credit Card Acct.#______/______/______/______Expiration Date______Three digit code on back______Name______Address______City/State/Zip Code______E-mail______Telephone #______You can also donate online by going to our web-site www.belltelretirees.org and click on DONATE NOW button. Consider a recurring donation—which is an easy and safe way to budget your contribution . o I am interested in learning more about Planned Giving. Please contact me. The Association of BellTel Retirees Inc. is a 501(c)3 tax-exempt organization representing retirees and active employees of Verizon, it’s subsidiaries and retirees who were transferred to Idearc/SuperMedia. 12/12 8 BellTel Retiree Winter 2012-13 16 Months = A Painful Process for Unions Negotiating With Verizon he Communications Workers of double healthcare premiums over the America and the International life of the contract. CWA members TBrotherhood of Electrical fired during the August 2011 strike can Workers have reached a four year con - return to work. ProtectSeniors.Org tract with Verizon for 45,000 wire- The contract preserves provisions of www.protectseniors.org line workers (CWA represents the previous contract which approximately 35,000 work - restrict the company from ers and the IBEW represents assigning work out of the We are fighting to keep approximately 10,000 work - employees’ home region, our earned retirement ers). preserves the existing benefits secure: defined benefit pension plan Back in the summer of HEALTHCARE 2011, Verizon workers went for current employees and on a brief strike when a new con - prohibits layoffs of workers hired SOCIAL SECURITY tract could not be reached. After 16 before 2003. MEDICARE months of negotiations, Director Chris Shelton Vice President of George Cohen of the Federal Mediation CWA District 1 (NY, NJ and New Eng - HELP US BY: u and Conciliation Services announced land) said of the contracts, “This con - Signing on and that an agreement between the tract ensures that every one of contributing at unions and Verizon was met. our members will see an www.protectseniors.org “After more than one year improvement in their stan - u of direct negotiations, the dard of living. It was a Receive timely updates u parties entered mediation tough fight and we turned Become a GrassRoots essentially at a standstill on a back efforts by the company Leader score of significant core issues. to gut our contracts. Now, u Ultimately, however, the parties we’ll keep up the fight to expand Respond to "write to good jobs for Verizon workers.” Congress" requests. committed to a problem solving mind - u set which paved the way to their achiev - Regarding their contract process, Take part in our surveys ing comprehensive agreement,” said IBEW International President Edwin D. Hill expressed some criticism of the Call 800-398-3044 / Mr. Cohen. “In plain terms, this agree - email [email protected] ment will provide a stable working envi - contract, “We don’t agree with every - Donate Today to: ronment for all parties concerned over thing in it, but it allows us to move for - ProtectSeniors.Org, P.O. Box 476, Cold the course of the next three years.” ward and continue to fight for good Spring Harbor, NY 11724 Among highlights in the contracts middle class jobs at Verizon in the years for both IBEW and CWA workers to come.” include an 8.2% compounded wage The new contract expires August 2015. We appreciate your financial increase over the next three years and and grassroots support ProtectSeniors.Org is a 501(c)4 organization. Contributions KEEareP NO TI tNax dFedOuctRibleM. ED PADIDo FwORe BhYa PvReO TyEoCuTrS EcNuIrOreRnS.tO ReG mail address on file? Please note that we have printed the email adress we have on file on the enclosed donation card. If it has changed, please email us at [email protected]. It is also important to ensure that you receive Association of BellTel Retirees email bulletins. Please make certain our email adress is included in your accepted email list. Winter 2012-13 BellTel Retiree 9 with great care and brought differing VERIZON HAS A NEW Co-Founder and CFO Retires opinions to logical consent on many BENEFITS WEBSITE AND (Continued from page 3) occasions. His dedication never wavered and his knowledge was and will remain, PHONE NUMBER pen enrollment for 2013 benefits pivotal to our success. began November 7th. After several Therefore on this occasion, it is our O members contacted the Association after pleasure to bestow on him the lifetime title not receiving their enrollment informa - of Board Member Emeritus.” tion, the Association stepped in and was “Bob made many trips to the office able to negotiate with Verizon to extend over the years – at least two a month – the open enrollment date through Decem - to sign vendor checks and to keep his ber 6. “eagle eye” on our finances … and to There is a new BENEFITS CENTER check up on the office where he was starting with this open enrollment. Their pivotal in negotiating our leases. He number is 1-855-4VzBens (1-855-489- was the official “contact” when we 2367). Bob Rehm addresses the membership at needed handouts, easels, projectors, etc. Contact them if you haven’t received the 2012 annual member meeting. transported to our annual meetings. any information for your 2013 enroll - He never turned us down – ever! The ment. To access the system you will need board and the Cold Spring Harbor staff the last four digits of the retiree social secu - retirees concerned about lack of prom - will miss his dedication, constant atten - rity number and date of birth. ised COLA increases to an effective tion to details and his unfailing sense of If you have internet connection, the 128,000 plus member humor. Bob has always NEW web-site is www.verizon.com/ Association. Not only been there when we benefitsconnection where you can check are they one of the needed him, and never your current health care plan and compare largest, but clearly one Thank You turn down an opportu - your 2013 options, enroll for your 2013 of the most successful nity to help our mem - plan, check out your beneficiaries, update retiree organizations in Bob Rehm bers,” said Eileen personal information and much more. the nation. Lawrence. If it’s your first time using the new sys - On December 4, the Once asked why he tem, you will have to REGISTER with a new user ID and password. Please read the Association board presented Bob Rehm commits so much to the Association, instructions to establish a new user ID and with a proclamation that reads: Bob answered “because it is the right password since they have specific require - “Whereas, The Association of BellTel thing to do.” We thank Bob for the sev - ments. Retirees Inc. recognized the enormous con - enteen amazing and generous years of tributions that Robert A. Rehm has made NOTE: IF YOU HAVE QUES - volunteer service that he has donated in TIONS ABOUT YOUR CURRENT over seventeen years of dedicated, volun - the fight to protect Verizon retirees’  HEALTH CARE PLANS continue to use teer service and pen sions and benefits. Whereas, Bob was one of the original 1-877-489-2367 until the end of the year. founders of the association. From the humble first steps in October of 1995 to Robert F. Manning e Manning Team his retirement in October 2012, Bob has been a critical thinker, an enthusiastic Director supporter and a tireless promoter of the Financial Advisor mission of the association… he has guided and guarded the finances of the associa tion One Liberty Place 1650 Market Street, 42nd Fl Philadelphia, PA 19103 tel 215 854 6271 VINWTAGEA BELNL LATBS EELECDTRON! ICS   Western Electric Equipment fax 215 854 6125 Vacuum Tubes - Speakers - Transformers toll free 800 233 1414 Test Equipment - Capacitors - Nassau Solder - www.fa.smithbarney.com/manning Cloth Wire & More! 610-649-4151 [email protected] www.cash4audio.com

     10 BellTel Retiree Winter 2012-13 “Putting Retiree Pensions At Great Risk” ennsylvania has been a hot spot for support and membership of PThe Association of BellTel Retirees. The Association has some 7,300 members from PA and has held h s two annual meetings there, in 2005 and c l d a n h o c

2009. Among the Pennsylvanians who S m

k m c i u S

heard the call to get involved in retiree h e v C

a f

advocacy with the Association’s board o D

y t s i e d t e are: Jack Studebaker, Chuck Schalch, r r u c

o o C t

and Don Kaufmann. o h Pittsburgh native Jack Studebaker is p an active retiree with a desire to help Board Member Chuck Schalch (right) Board Member Don Kaufmann other retirees, since joining the board with comedian Bill Cosby in 1984. would sell off the pensions two years ago. Jack graduated from When he retired in of 41,000 management Pennsylvania State University in 1960 December 1992, Jack felt retirees to Prudential in and was seeking a solid career to sup - that the sense of family exchange for giving the port his new wife, Virginia (they’ve would carry over. Dur - insurer $7.5 billion, and in since been married 52 years). He ing his tenure, managers turn severing its financial learned about Bell of Pennsylvania from would visit with retirees, obligations to tens of thou - an aunt who spent her career with Bell. but that’s faded. He stresses sands of its former loyal He joined the management training that Verizon’s feeling about workers. This switch to an program and spent 33 years at the com - retirees have changed. insurance annuity strips pany. They now see retirees as from retirees any ERISA Early in his career, Jack worked in liabilities. “This change in pension protections or the Marketing, a new area of emphasis for attitude makes it impor - Board Member safety net of the federal Bell which offered exciting opportuni - tant to have organizations Jack Studebaker Pension Benefit Guaranty ties. He later moved into Plant Opera - like the Association of Bell - Corporation (PBGC). tions, Labor Relations and retired Tel Retirees and ProtectSeniors.Org to “This latest swap of our pensions for a from Information Systems. represent our retirees.” non-guaranteed annuity is really a “After I retired, I missed the feeling Jack decided to join the Association threat to all retirees’ economic security,” of friendship with people at all levels of when he realized it was they who were Mr. Studebaker stated. the business. Even if we were competing looking out for retirees. He joined the Chuck Schalch, who has lived in the with each other, we were all in the same board to be a part of the solution and Philadelphia area for most of his life, boat and pulling in the same direction,” help serve fellow retirees. has been serving on the retiree associa - Jack said. In October, Verizon announced it tion board for the last three years. After graduating from Temple University, he spent four years in the army training as a pilot and flying helicopters. After being discharged from the military, Chuck wasn’t sure what the future held for him, but during a year and a half of the Bell training program, he learned what made the communication indus - try hum. In 1958, he joined Bell of Pennsylva - nia’s management training program and throughout a 31-year tenure worked as a business manager, a district manager, a district plant manager and a division manager, before retiring as Division Manager for Public Relations and Winter 2012-13 BellTel Retiree 11

of Pennsylvania and then joined Bell’s is Unnecessary management training program. Dur - Retiree News & Notes: Affairs in 1989. During his time with ing a 30-year career, he worked in the company’s Public Relations and Engineering, Operations, Network Public Affairs group, he participated in Planning, Construction Budgeting at some significant civic and political New York’s AT&T, and Regulatory efforts. and Finance. He also held several One of his roles was to monitor the regional positions for Bell Atlantic and corporate contribution budget, which served as the Division Manager over - seeing Network planning in Arlington, enabled the founding of Bell PA’s Insti - Jack Cohen with 2013 NYC St. Patrick’s Day tute for Non Profits Excellence, to fund Virginia, shortly after divestiture in parade Grand Marshal Alfred E. Smith IV. raise and sustain important community 1985. organizations. In 1987 they celebrated When reflecting on his experiences, • Association Executive Vice President the 200 th anniversary of the signing of Don shared, “At divestiture, I hap - Jack Cohen and Board Member John the United States Constitution. pened to be in charge of the toll plan - Hyland attended the Irish Consulate That program evolved into the for - ning group in Bell of Pennsylvania, so announcement that Alfred E. Smith IV mation of the PA Liberty Medal, which my group had an active role in divesti - will be Grand Marshal of the 2013 New Chuck and four others oversaw. U.S. ture activities. We designed the later York City St. Patrick’s Day Parade. The Presidents and dignitaries have been boundaries in Pennsylvania and parade, which will take place on Saturday, recipients. Through his involvement he Delaware and preformed studies, March 16, draws 250,000 marchers and met President Ronald Regan, Italian which were referenced by Judge two million spectators. Ambassador Tom Folgetti, Senator Greene in his decision. My experi - Smith is the grandson of former New Arlen Spector, and other major political ences at divestiture and the friendships York Governor Alfred E. Smith and also players. formed at that time remain a very pos - chairs the Annual Alfred E. Smith dinner He credits Temple University, where itive memory for me.” in New York which is a must-attend polit - he served as Alumni Association Presi - Don retired after 30 years with the ical event for presidential candidates. The dent and later its Board of Trustees, for company when he was offered an October 2012 dinner had both President Obama and Governor Romney as high - his passion for service. Through the incentive, not wanting to permanently lighted speakers. University he came to know comedian relocate from his home to Virginia. • On October 17, board member Like his fellow Pennsylvania board Bill Cosby. One year he invited the star Chuck Schalch met with the Liberty Bell members, Don became interested in for a surprise visit to the company’s Chapter of Pennsylvania Pioneers accom - management meeting in Hershey, PA, The Association of BellTel Retirees panied by chapter president Jerry Verre - where Cosby offered a stand-up comedy after participating in the 2009 annual chio and other state retiree leaders and performance for the group. member meeting in Valley Forge. members. Mr. Schalch spoke about the After being retired numerous years, “I do not believe in sitting around need to pass HR 1322 in Congress, ongo - Chuck had been hearing about the and waiting and hoping for things to ing federal litigation - Murphy v. Verizon Association and its advocacy work, so happen. I felt that I could be a positive lawsuit — and the excellent work of both he attended the 2009 annual member influence.” Regarding the company the Association of BellTel Retirees and meeting in Valley Forge. Then his wife divesting of its management retiree ProtectSeniors.Org do to protect retirees. Penny, who also worked at the compa - pensions, he continued, “I think Veri - • On September 25, Association ny, encouraged him to get involved. He zon is unnecessarily putting retirees’ Chairman Jack Brennan spoke to 45 peo - said that it is critical that “we keep our pensions at great risk—these are ple from PPR Pioneer Group in Totowa, fingers on the pulse of Verizon and help retirees who worked in good faith to New Jersey. keep the benefits we earned for retire - contribute to the growth and expan - • On September 12, Mr. Brennan and ment,” Chuck said. sion of Verizon, and its previous com - fellow board member Don Kaufmann He says that the act by Verizon to sell panies, into world class businesses. met with the BellTel Wagoneers, (a group 41,000 retirees pensions off to an insur - How can any employee feel a loyalty to composed of residents of the U.S. and ance company (Prudential) came as a a company that breaks their part of the Canada) in a camp ground in Gettysburg, surprise but retirees need to work commitment?” PA to discuss the Association and the job together to find a better solution, saying The Association of BellTel Retirees of protecting retiree healthcare. it leads us all into what he defines as extends it thanks to Jack, Chuck and • If you would like to invite a member of the Association of BellTel Retirees “unchartered waters.” Don and all of our volunteers for their Board of Directors to speak at your next Don Kaufmann was also born and active role in advocating for the pro - event or gathering, please contact the tection of their fellow retirees pensions raised in Philadelphia, PA. He received an office at 1-800-261-9222 or via email at and benefits. engineering degree from The Univer sity [email protected]. 12 BellTel Retiree Winter 2012-13 Being Dragged Kicking And Screaming Into The 21 st Century By Jack K. Cohen In recent months there has please get your email address ome months ago I finally upgrad - been much time-sensitive to our office. We will respect ed to a Smart Phone. The little retiree news to communicate your privacy and will never Sthing can fit into my shirt pocket to our members. Our mem - give your email address to and do everything but wash the dishes. bers who have provided us outside vendors. I can make and receive calls; it has Blue - with an email address get If you have not yet adapt - tooth for the car, speakerphone, email word right away from us, ed to a computer or worry and the Internet. It’s essentially a hand while others must wait for the about breaking such an intri - held computer, smaller than the hand - quarterly BellTel Retirees cate instrument, don’t be. set on your landline, and the latest newsletter. Lessons and instructions are model can be had for free with a new A special U.S. Postal Serv - readily available in your own cell phone contract. The only thing ice mailing to communicate community. If you were able missing was a 12-year-old to show me with each retiree is very cost - to learn your complicated job how to use it. After many visits to the ly, while an email broadcast is both as an employee, you certainly can learn Verizon store, I can now operate at least weeks quicker and a small fraction of how to work email. Many of you have half of the features and can’t live with - what old fashioned mailings cost. children and grandchildren who would out it. We are encumbered from fulfilling love to provide you with an email So many of our members are intimi - our primary mission to retirees by a address on their computers or provide dated by the thought of using a com - technology, which is not used by so very you with instruction. puter. I have three good friends, now many of our members. So in order to If you don’t want to purchase a com - ages 69-85, I worked keep everyone informed we puter, one is always available free at with in the 1970’s and are forced to incur tens of your local library and you can get an we still get together. Members who thousands of dollars in print - email address without having a com - The 85 year old is the provided us with an ing and postage expenses, puter using something like: mail.com. most tech savvy, two are which really should not be On the enclosed donation card print - lawyers in their mid 70s, email address get necessary in this age of tech - ed above your name is the email address one of whom is attend - nology. we have on file for you. If you would ing computer classes and word right away… Some members are on like to change it or give us a new address the other would not while others wait. email, but either never open please email us at association@belltelre - touch a computer if it our broadcast messages or tirees.org (please include your name and were wrapped in hundred dollar bills. they allow those vitally important mes - zip code). They are a composite of our mem - sages to go to SPAM, which is a folder We need you to help us get informa - bership. for junk mail. If you have email access, tion back to you….quickly.