2016 Spring Belltel.qxp_12pages 2/5/16 1:28 PM Page 1 BELLTEL RETIREE The Official Newsletter for Union and Management Retirees and Employees of Bell Atlantic, GTE, Idearc/SuperMedia/DexMedia, NYNEX, MCI, and its Subsidiaries. Paid for by contributions from Verizon and Idearc/SuperMedia/DexMedia retirees.

Spring 2016 Volume 77 BellTel Retirees Score Key Ally Association Pushes Feds On Fiduciary In U.S. Supreme Court Case Conflict Rule he Association of BellTel Retirees has added its voice to the impor- Ttant effort to crack down on pen- sion fiduciaries’ conflicts of interest. In a letter to the U.S. Department of Labor (DOL), the Association has thrown its support behind an effort to tighten rules on those who serve as fiduciaries, to ensure they are obligated to put the best interests of clients ahead of their own profits. The White House Council of Economic Advis- ers determined that conflicts of interest among major ally was secured in the have standing to seek action. investment advi- Association of BellTel Retirees “In the context of defined benefit sors directly lead to about 1 percentage AUnited States Supreme Court pension plans, this could mean that par- point in annual losses for retirement legal challenge against Verizon over its ticipants could not seek redress for fidu- savers, costing about $17 billion per year. jettisoning of 41,000 management ciary mismanagement until they have The Council also calculates that an indi- retirees out of its federally protected pen- been deprived of their benefits,” the vidual could lose an astonishing 25 per- sion plan and the company’s use of $1 Center wrote in its filing, “at which point cent of his or her savings over the course billion in pension funds to pay non-relat- of 35 years. ed expenses. “We believe that those entrusted The Washington, D.C.-based Pen- with a fiduciary responsibility should sion Rights Center, a national non-profit owe the highest debt of trust and con- advocacy organization focused on pro- fidence to the principal they represent tecting retirement security, has filed a and no other,” BellTel President and “friend of the court” or amicus curiae Executive Director John Brennan and brief, supporting the Association’s litiga- Board Chairman Jack C. Cohen tion against Verizon, which is now being wrote to the Department of Labor.

considered for a hearing by the High photo credit Dave Simmonds Court. BellTel Special Legal Counsel Curtis Kennedy is (Continued to page 5) The center, an influential voice for leading our U.S. Supreme Court fight. retirees for over 40 years, argued that the — INSIDE THIS ISSUE — plaintiffs in the case – Pundt v. Verizon it would almost certainly be too late… – should have the right to complain because the statute of limitations would 2016 Proxy Proposal – Pg 3 about mismanagement of their pension have run out.” Retirees’ Impact On IRS Ruling – Pg 3 funds and seek civil enforcement against Having the support of the Pension 20th Anniversary Meeting – Pg 4 Verizon under the Employee Retirement Rights Center adds weight to the case Don’t Get Caught By Medical Income Security Act (ERISA). Lower and indicates that the stakes are larger Claims Fine Print – Pg 5 courts have found that plan participants than just the assets of the 41,000 retirees History Of Results For Retirees – Pg 6 must prove they have already suffered who are a party to the suit. Why Retirees Should Picket – Pg 8 individual financial harm before they (Continued to page 9) Retiree Spotlight – Pg 10 2016 Spring Belltel.qxp_12pages 2/5/16 1:28 PM Page 2

2 BellTel Retiree Spring 2016 instructions on how to RSVP and I Let me repeat that: Your Associa- enthusiastically hope to see all of you tion led litigation to protect all of our who can make it. fellow retirees’ . This case is 12th Time a Charm: Eleven times now being reviewed and considered by your Association has challenged the the nine justices of the highest court in corporate excesses at Verizon and won. America! We have done this successfully via the Saying that takes my breath away, annual shareowner proxy ballot and considering the volume and magni- we will do it again in 2016. tude of legal work and accomplish- The idea to leverage our collective ment it took just to get there. And to shareowner rights evolved after our say that our doggedness has confound- President’s Message first year in existence, when NYNEX’s ed the company and the U.S. employ- By John “Jack” Brennan CEO refused to recognize the Associa- ee benefits industry is an understate- tion as an advocate for 3,000 retirees ment. To all my fellow Verizon retirees let who signed a petition demanding a My Appeal: As I began, this is a me state clearly that 2016 will be a COLA that was guaranteed in their very remarkable year for all of us. We very remarkable year for all of us. I’ll working years. Then the lightbulb are not just going through the explain. went on… The company CEO could motions but fighting tooth and nail Springtime in New York: On not duck out on responding to share- for you. Each of these and other crit- April 19 we will be holding the Associ- owners, so the Association became a ical strategies are powered by your ation’s 20th annual member meeting NYNEX, then Bell Atlantic and even- donations. While Verizon has an in Tarrytown just a short trip from tually a Verizon stock owner! unlimited ability to spend, we do not. New York City, Southern Connecti- In 2016 we are petitioning share- Please be generous in supporting the cut, Northern New Jersey and the owners to close a rather new loophole actions of the Association of BellTel entire Hudson Valley. We selected that once again allows excessive execu- Retirees today. this location due to its close proximity tive golden parachutes. The fact is, we to thousands of our members. If you have fought the company multiple have not been to one of these wonder- times over excessive bonuses, compen- OUR MISSION: ful gatherings before, 2016 is a perfect sation and golden goodbyes and won. time to start. Time after time the company agrees to The Association of BellTel Let me put this annual reunion and change their ways, only to find a new Retirees Inc. is dedicated to promot- member meeting in perspective. We loophole. See article on page 3. ing the protection and enhancement regularly achieve crowds of 200 to 500 Standing at the Highest Court in retirees and spouses, many of whom America: Over several years our feder- of the pensions and benefits for all join us the evening before the event to al litigation has sought to confront retirees and beneficiaries of the com- catch up with old colleagues with Verizon over the way it spun off the panies and subsidiaries that make up whom we worked shoulder-to-shoul- pensions of 41,000 retirees and may der during what some consider the do the same to thousands more in the the Verizon and Idearc/SuperMe- best years of our lives. Recapturing near future. In the coming months we dia/DexMedia Corporations. that old camaraderie is truly magical. expect to hear more about our pension The Association will convince the For two decades now we have held spinoff litigation (Pundt –vs – Veri- company to properly care for its this event in a rotating list of states in zon), now in the hands of the United close proximity to where our retirees States Supreme Court. thousands of dedicated former live, because we want and need your union and management employees. active involvement and participation. We’ve taken this important annual The Association will conduct — Advertisements — activities designed to educate elected event to Delaware, Florida, Maryland, All representations made in adver- Massachusetts, New Jersey, Pennsylva- tisements are solely the responsibility federal, state and local representa- nia, Virginia and are delighted to of the advertiser. The Association of tives and promote the passage of leg- return again to New York. BellTel Retirees is not responsible islation which will protect and guar- We have some members who have for any such representations. The attended every single meeting regard- Association does not endorse any antee, rather than invade our hard- less of location, plus other familiar advertiser. earned pension and benefits fund. faces that rarely miss it. On page 4 are 2016 Spring Belltel.qxp_12pages 2/10/16 7:37 AM Page 3

Spring 2016 BellTel Retiree 3 PROXY 2016: Retirees Fight Against Even More Retirees’ Impact IRS Ruling Verizon Executive Golden Parachutes n mid-December the Association of BellTel Retirees issued a request erizon retiree leaders are waging termination payments without the Ito our members alerting them a proxy challenge to an required shareholder approval. In about a proposed new IRS rule that Vaccounting gymnastics loop- effect, the loophole circumvents the would require all charities, be it a hole in the mega telecom’s “golden intent of the policy shareholders over- church, hospital, food pantry or even parachute” rule. This rule allows Veri- whelmingly adopted in 2003 when our Association to compel all donors zon’s CEO and other top executives to retirees introduced the governance making a contribution of $250 or walk away with multi-million dollar change.” more to supply their Social Security termination payouts as high as $37 mil- In 2015, a nearly identical proposal, number. To anyone fearful about lion. also sponsored by Mr. Cohen, received identity theft, this was concerning, so Association of BellTel Retirees nearly 35% support. Mr. Cohen said, we asked our members to raise their Chairman Jack Cohen has introduced a “We are going back again and this year voices and explain to the IRS the chill- ing negative impact that this might proposal for Verizon’s 2016 proxy we are looking for victory.” have. statement that will require the company “The Association of BellTel Retirees Well, on January 7th the federal to seek shareholder approval for any has achieved what no other group has government heard new or renewed executive severance with its frequent proxy campaign our voices and payment exceeding three times the wins,” said BellTel President Jack Bren- published the fol- executive’s base salary, plus short term nan. “Executive severance must be sub- lowing notice: bonus. ject to standards of scrutiny. We are “A wave of com- This formula was proposed and confident that responsible shareholders plaints forced the approved by 59% of Verizon share- will agree.” IRS on Thursday holders in 2003, but when Verizon’s Verizon’s annual meeting is in early to withdraw its controversial plan to Board implemented that, it left a loop- May 2016. At the time of this writing, have nonprofit charities report the hole excluding the accelerated vesting the actual date and location have not Social Security numbers of donors who of unearned performance stock units been announced. give just $250 in any given year.” (PSUs) and restricted stock (RSUs). When you receive your 2016 Veri- This is magnificent news, but of Since long-term equity represents the zon shareholder proxy information we greater significance is that it should lion’s share of executive compensation ask you to WAIT for a letter or an email prove to all of us that mountains at Verizon today, even golden para- from the Association that will give our would be moved if enough people chutes worth six or seven times salary recommendations for voting. make their voices heard loud and plus bonus would not trigger the com- You will receive the annual report, clear. There were over 37,000 com- pany shareholder approval requirement. proxy statement and balance sheet ments submitted to the IRS including Under the current compensation BEFORE you hear from us. Please be 786 from our own membership. This guidelines, if CEO Lowell McAdam is patient. We will not know the name avalanche upon the IRS made the fed- terminated without cause – regardless and number assigned to the Verizon eral department sit up and take notice. of whether there is a change in control Retiree proxy proposals until we receive Our members need to look at this in of the corporation - he can receive near- this information from the company. a positive way and recognize what can be accomplished when we all have ly seven times his base salary plus short- We will need that information to motivation to act swiftly. Let’s use this term bonus. Based upon Verizon’s finalize our letter, print it and mail it to as a springboard in the coming weeks. 2015 Proxy Statement earnings disclo- you. There is no rush to vote as you will We will be asking you to call your sures, Mr. McAdam could receive an have plenty of time to send in your bal- Members of Congress and/or State estimated $37.2 million in termination lot after you receive our letter. Legislators to take action, or simply payments. Those who are signed up for our press a button and send an email relat- “We believe that Verizon’s sever- email bulletin service will receive this ing to our issues. ance approval policy must be based on information first, then members receiv- Just imagine what else can be the total cost of the termination pay- ing via U.S. mail will receive the infor- accomplished in 2016 if all of our ments to shareholders,” said Mr. mation a week or more thereafter. members take action. You can see Cohen. “This retiree proposal closes a Please make sure to vote this proxy from what happened with the IRS that loophole that would allow millions in season. it works. 2016 Spring Belltel.qxp_12pages 2/5/16 1:28 PM Page 4

4 BellTel Retiree Spring 2016 Join BellTel’s 20th Anniversary Celebration on April 19 he Association of BellTel reservation form below. Be sure to Retirees is celebrating its 20th include the names of all those attending Tanniversary in Tarrytown, New and return it with your $5 per person York with a meeting at the Doubletree registration fee to Ms. Susan Donegan, by Hilton Hotel located at 455 South c/o the Association of BellTel Retirees, Broadway on Tuesday, April 19, begin- P.O. Box 33, Cold Spring Harbor, NY ning at 8 a.m. 11724. Members will get the chance to catch Please make all checks payable to the up with old friends and colleagues, Association of BellTel Retirees. Entrance speak with Association board members tickets and directions will be mailed to and hear from and speak to the Associa- you as the event gets closer. Please note tion’s legal team about our ongoing fed- that hotel reservations and event reserva- eral litigation and also about our efforts tions are separate and a reservation to one to fight back against pension de-risking is not a reservation for the other. All mem- and much more. Hudson River. Nearby, you will be able bers must register with the Association to We urge everyone to mark their calen- to visit the Empire Casino at Yonkers guarantee a spot at the meeting. dar and make it a priority to attend the Raceway; Kykuit, the Rockefeller estate; To reserve a hotel reservation at the meeting. For those who live in the New Lyndhurst Castle, and so much more. special discounted rate you can contact York – New Jersey - Connecticut Metro- The Doubletree hotel is about an hour the hotel at (914) 631-5700. politan region, the hotel is less than an south of West Point and some of the We look forward to seeing you at our hour away by car or the MTA Metro Hudson Valley’s many wineries. very special 20th annual celebration. North Railroad from New York City and Our last annual meeting in Tarrytown Last year, the Association hosted the it is the first exit off the Tappan Zee was back in 2010 and over 300 members meeting through an online webinar for Bridge in Westchester County. It is also attended. It was a great meeting, and we those who wanted to attend the meeting just minutes off of Interstate 95 and is hope just as many of you and your spous- but could not make it. We are offering easily accessible from all major highways. es will be a part of this major event. that webinar service again this year. For those interested in coming via Metro The hotel is offering the Association To participate, you need a computer North, the hotel is offering shuttle serv- of BellTel Retirees members a special to view the meeting live and you can post ice, given advance notice of arrival time. room rate of $137 dollars for those who questions to be considered. There is no

Tarrytown, the backdrop for Wash- wish to stay overnight. Use code ABR cost to participate. To participate, please

ington Irving’s famous “Legend of Sleepy when booking. register at [email protected]; Hollow” is home to many of the Indus- Reservations are needed. To reserve a and for more details please call the Asso- trial Age mansions overlooking the scenic seat, please complete and send the RSVP ciation at 1-800-261-9222.

RSVP for Association of BellTel Retirees Annual Meeting Tuesday, April 19, 2016 at The Double Tree Hilton, 455 S. Broadway, Tarrytown, New York

A Ticket Is Required To Attend

I will attend the meeting in Tarrytown, NY - # 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 / P.O. Box 33, Cold Spring Harbor, NY 11724 2016 Spring Belltel.qxp_12pages 2/5/16 1:28 PM Page 5

Spring 2016 BellTel Retiree 5 Don’t Get Caught By Medical Claims’ Fine Print By Jack Cohen how to file an appeal through The problem was that the ’ve been married to my wife Ilene for various insurance companies provider somehow transposed 49 years. She’s a lot healthier than I and our appeal ultimately it to show that she had taken Iam. Longevity in her family is amaz- became an appeal to the 2015 physical earlier than ing. That is why I was so shocked when Medicare. I supplied all sup- she actually did. The takeaway we received a notice of denial of payment porting documentation on is that if you are one day short for her annual physical, resulting in a each visit placed where a of a full calendar year, you like- $400 bill. claim was filed in 2015. wise are in jeopardy of She is part of the Medicare Advantage On December 3rd I “exhausting your maximum Plan and is Medicare eligible. The reason received notice that the benefit.” we were given for the denial was “The denial had been reversed and I would be One full year must pass before taking maximum benefit has been exhausted.” refunded the payment I had made. I your physical, which really means “one We received this a month after her exam, received that payment on December year plus.” It is no longer an annual phys- which she had on August 13, 2015. She 24th…Merry Christmas. ical. It becomes an “annual plus” physi- had only filed a total of six claims for It turns out the issue was that the cal. medical visits during the first eight annual physical must not occur within The moral of the story is that we months of 2015, of which our insurance the calendar year after the last physical. should never take these denials at face paid $436.95, or 19.2%, of what was My wife had actually taken her physical value. If you maintain good records and submitted. How could that possibly be one week earlier in August 2014 than she appropriately challenge the denial, you exhausting the maximum benefit? did in August 2015, meaning it was not can win. The denial came with instructions on within a calendar year! Association Pushes Feds On Pension Fiduciary Conflict Rule (Continued from page 1) adopt a set of proposals that would union members and others still under the increase transparency and expand the Verizon pension umbrella? In what ways “Fiduciaries cannot serve two masters, number of investment managers bound does that transfer negatively impact their and given significant transgressions, by strict conflict of interest rules. Those future and the future of their families? especially against older savers, the only subject to the tougher conflict of interest As the federal agency considers way retirees can have greater certainty is regulations are required to always priori- tougher rules on how fiduciaries make with a new and more stringent standard tize the interests of clients over their own decisions about retirement assets, the and set of rules proposed by the DOL for profits. 41,000 retiree pensions that were trans- investment managers and advisors.” Just as importantly, Mr. Brennan and ferred are now subject to far-less stringent Financial managers with control over Mr. Cohen tied the need to and consistent rules than they enjoyed retirement savings are “Fiduciaries cannot serve tighten rules on fiduciaries under ERISA and the Pension Benefit often paid fees and to the actions taken by Veri- Guaranty Corporation. commissions to steer two masters…those zon when it transferred some The Association is currently pursuing clients’ money into entrusted with a fiduciary $8.5 billion in assets from litigation against Verizon, (Pundt v. Ver- certain funds or 41,000 retirees to a third- izon), over this action and the U.S. investment vehicles. responsibility should owe party insurance entity with- Supreme Court is now considering hear- Currently, they oper- the highest debt of trust and out consulting or informing ing the case. ate under an uncertain the retirees themselves. This At the same time, our sister organiza- patchwork of regula- confidence to the principal is precisely the type of occur- tion, ProtectSeniors.Org, is working in tions and disclosure they represent and no rence that the Employee Congress to pass legislation that would requirements. In Retirement Income Security affect companies’ ability to cut or elimi- many instances, man- other.” – Jack Brennan Act (ERISA) is meant to nate earned benefits for retirees. That agers do not have to guard against. bipartisan legislation, the Employee Ben- tell clients they are also being paid by the “We are gravely concerned with fidu- efits Protection Act, H.R. 1856, has been investment funds to which they steer the ciaries that unilaterally and significantly introduced by U.S. Rep. Louise Slaugh- assets. alter the way that earned defined benefit ter (NY-25). “(Financial advisers) can get paid a lot pensions are managed and administered,” What all this reflects is that your Asso- more money to sell one product over they wrote. ciation is actively advocating on your another and there’s just a ton of conflicts Was the action of Verizon as fiduciary behalf with not one, but all three branch- of interest and a lot of hidden fees,” Ron proper in the case of 41,000 retirees, es of the federal government: The Execu- Rhoades, a professor of finance at West- transferring $7.5 billion in retiree pen- tive, Judiciary and Legislative. These ern Kentucky University, told sion assets, plus another $1 billion for issues are all of pressing importance to all Bloomberg News. “Having a conflict of expenses to Prudential? How might that retirees and we will remain on the fore- interest is a breach of fiduciary duty. You impact the remaining tens of thousands front of fighting to protect, preserve and have to cure that breach.” of retirees, including the many retired defend your retirement benefits. The Association urged the DOL to 2016 Spring Belltel.qxp_12pages 2/10/16 7:38 AM Page 6

6 ce to the Verizon Re 7 rs of Servi tiree Comm 20 Yea unity * * BellTel History of * 1996 2016 * Results for Retirees n our Winter edition, we looked benefits. The bill, the Emergency Retiree success, the Association won not one but Fighting Golden Parachutes back at the Association’s earliest Health Benefits Protection Act (HR two proxies against Verizon, an unprece- Thanks to its growing army of sup- years, (1996-1999), chronicling our 1322), was introduced into Congress in dented achievement. The golden para- porters, the Association achieved seven founders and their mission to 2000 and by the next year had 58 spon- chutes proxy won with 59% of share- another proxy bylaw change at Verizon holdI our former employers accountable sors, prompting corporations to launch owner votes, while our proxy on shadow in 2004. The company agreed to the for commitments made in our working an all-out campaign against it. profits was accepted and adopted by the terms of an Association proxy that sev- years. Over the next five years (2000- Successful Shareholder company’s board after its near victory the erance agreements more than 2.99 2005), the Association truly flourished by Proxy Campaigns previous year. times an executive’s base salary and winning its first historic proxy campaigns As it kept an eye on the halls of Con- “This was a historic win, the first time bonus, would require the pre-approval to change Verizon’s bylaws, gaining gress, the Association was busy making that either a NYNEX, Bell Atlantic, Ver- of shareholders. The change coincided national exposure and prominence, and huge strides in sponsoring shareowner izon or Bell System shareholder proposal with Verizon’s listing on the Dow Jones proxies that garnered an was won over the objections of the com- Industrial Average. amazing 1.5 billion share- pany,” said then-Association President C. The Association is among the recipients of the National Committee to Preserve Social In 2005, under threat of another owner votes. Momentum William Jones. Security and Medicare’s Salute to Aging Awards. retiree proxy battle, Verizon agreed to steadily increased. Coming off the success of the proxies, rein in Supplemental An initial proxy to limit the Association leaders were invited to former Chairman of the Executive Retirement future executive “golden meet with the COO and Deputy Admin- Pension Rights Center. Plan (SERP) income for parachutes” received 32 per- istrator of the Centers for Medicare and Membership Passes executives. So it was only cent of the vote and in 2002 Medicaid Services Ruben King-Shaw Jr., 100,000 fitting that the Association the Association shocked and to Cornell University’s school of Even as it bid goodbye was awarded the presti- Wall Street by winning Industrial and Labor Relations to partici- to a great champion, the gious National Commit- 42.7% of shareholder proxy pate in a seminar on healthcare. Mr. Association marked a very tee to Preserve Social votes with its Calculation of Shaw said, “None is more central to the significant and impressive Security and Medicare’s Incentive Compensation future of our great nation as the strength- milestone: Its membership Salute to Aging Award, in 2004 surpassed the which recognized Ameri- Ruben King Shaw, President Bush’s COO of Medicare Proxy, also known as “shad- ening of the American healthcare finance 100,000 mark. It was quite ca’s top retiree activists and Medicaid with Bill Jones. ow profits.” That retiree and delivery system through reengineer- James Roosevelt Jr., grandson of president Franklin D. Roosevelt (middle) was proxy proposal would bar ing of the Medicare and Medicaid pro- a voyage for a group that among award recipients with BellTel leaders Jack Brennan and Bill Jones. committed to enhancing the company from includ- grams.” had begun less than 10 the quality of life for sen- ing the earnings from the Sadly, in 2004 we lost Michael Gor- years earlier with a mem- in your corner.” iors and their families. retirees’ then $55 billion don, the Association’s legal counsel and bership of only seven NYNEX retirees. With its membership reaching new The Association continued to grow its th st pension fund as net income one of the original drafters of the ERISA The 100,000 and 100,001 members heights, the Association’s leaders were efforts and network with other groups, when calculating officers’ law. Mr. Gordon was a major contrib- were a Virginia couple, Luther Becraft – busier than ever. traveling to Washington, D.C. to meet incentive pay. utor to the drafting of H.R. 1322 and a retired C&P telephone with the National Committee to As the Association employee – and Margaret Preserve Social Security and racked up impressive vic- Becraft, who worked for South Medicare. tories in its proxy fights Western Bell and later C&P. In the next few issues, we will “I think it is wonderful that continue to reflect on the Associa- Bill Jones discusses retiree issues with Cornell University and its membership con- the Association has that many tion’s proud and accomplished Dean Edward Lawler tinued to grow and make noise, it was featured members that are ready to fight history. We ask that you please in 2000 surpassed 100,000 members. prominently in prestigious and widely for our interest,” Ms. Becraft also share some stories about your As the new millennium began, the read publications like Fortune and Time told the Association at the time, years at the company or in retire- Association won important victories for Magazine, Business Week, Crain’s New “It is very surprising that we ment with us. Please write or th pre-1995 retirees, campaigning for and York Business and more. ended up being the 100,000 email us your favorite memories earning lump sum COLA payments as In 2002, New Jersey retiree Jack members to join. What a stroke or share them with us on Face- well as an increase to the minimum pen- Brennan became the Chairman of the of luck. When we retired, we book. We look forward to hearing sion payments. The Association waded Association, which he still serves today felt like the world forgot about them. into national policy by drafting federal as President. us and there was nobody look- Thank you for being part of ing out for our interests. Now legislation to prevent corporations from The next year was a truly remarkable Luther and Margaret Becraft, the Associa- our history and success. we are part of a group that looks Some 475 retirees gathered on St. Patrick’s day in Sarasota, In our next issue we will look cancelling and reducing retiree health one for the Association. Building on its tion’s 100,000 and 100,001 members. out for each other and is always FL to be a part of the Association’s 2004 annual meeting. back at the years 2006-2010. 2016 Spring Belltel.qxp_12pages 2/5/16 1:30 PM Page 6

6 ce to the Verizon Re 7 rs of Servi tiree Comm 20 Yea unity BellTel History of 1996 2016 Results for Retirees n our Winter edition, we looked benefits. The bill, the Emergency Retiree success, the Association won not one but Fighting Golden Parachutes back at the Association’s earliest Health Benefits Protection Act (HR two proxies against Verizon, an unprece- Thanks to its growing army of sup- years, (1996-1999), chronicling our 1322), was introduced into Congress in dented achievement. The golden para- porters, the Association achieved seven founders and their mission to 2000 and by the next year had 58 spon- chutes proxy won with 59% of share- another proxy bylaw change at Verizon holdI our former employers accountable sors, prompting corporations to launch owner votes, while our proxy on shadow in 2004. The company agreed to the for commitments made in our working an all-out campaign against it. profits was accepted and adopted by the terms of an Association proxy that sev- years. Over the next five years (2000- Successful Shareholder company’s board after its near victory the erance agreements more than 2.99 2005), the Association truly flourished by Proxy Campaigns previous year. times an executive’s base salary and winning its first historic proxy campaigns As it kept an eye on the halls of Con- “This was a historic win, the first time bonus, would require the pre-approval to change Verizon’s bylaws, gaining gress, the Association was busy making that either a NYNEX, Bell Atlantic, Ver- of shareholders. The change coincided national exposure and prominence, and huge strides in sponsoring shareowner izon or Bell System shareholder proposal with Verizon’s listing on the Dow Jones proxies that garnered an was won over the objections of the com- Industrial Average. amazing 1.5 billion share- pany,” said then-Association President C. The Association is among the recipients of the National Committee to Preserve Social In 2005, under threat of another owner votes. Momentum William Jones. Security and Medicare’s Salute to Aging Awards. retiree proxy battle, Verizon agreed to steadily increased. Coming off the success of the proxies, rein in Supplemental An initial proxy to limit the Association leaders were invited to former Chairman of the Executive Retirement future executive “golden meet with the COO and Deputy Admin- Pension Rights Center. Plan (SERP) income for parachutes” received 32 per- istrator of the Centers for Medicare and Membership Passes executives. So it was only cent of the vote and in 2002 Medicaid Services Ruben King-Shaw Jr., 100,000 fitting that the Association the Association shocked and to Cornell University’s school of Even as it bid goodbye was awarded the presti- Wall Street by winning Industrial and Labor Relations to partici- to a great champion, the gious National Commit- 42.7% of shareholder proxy pate in a seminar on healthcare. Mr. Association marked a very tee to Preserve Social votes with its Calculation of Shaw said, “None is more central to the significant and impressive Security and Medicare’s Incentive Compensation future of our great nation as the strength- milestone: Its membership Salute to Aging Award, in 2004 surpassed the which recognized Ameri- Ruben King Shaw, President Bush’s COO of Medicare Proxy, also known as “shad- ening of the American healthcare finance 100,000 mark. It was quite ca’s top retiree activists and Medicaid with Bill Jones. ow profits.” That retiree and delivery system through reengineer- James Roosevelt Jr., grandson of president Franklin D. Roosevelt (middle) was proxy proposal would bar ing of the Medicare and Medicaid pro- a voyage for a group that among award recipients with BellTel leaders Jack Brennan and Bill Jones. committed to enhancing the company from includ- grams.” had begun less than 10 the quality of life for sen- ing the earnings from the Sadly, in 2004 we lost Michael Gor- years earlier with a mem- in your corner.” iors and their families. retirees’ then $55 billion don, the Association’s legal counsel and bership of only seven NYNEX retirees. With its membership reaching new The Association continued to grow its th st pension fund as net income one of the original drafters of the ERISA The 100,000 and 100,001 members heights, the Association’s leaders were efforts and network with other groups, when calculating officers’ law. Mr. Gordon was a major contrib- were a Virginia couple, Luther Becraft – busier than ever. traveling to Washington, D.C. to meet incentive pay. utor to the drafting of H.R. 1322 and a retired C&P telephone with the National Committee to As the Association employee – and Margaret Preserve Social Security and racked up impressive vic- Becraft, who worked for South Medicare. tories in its proxy fights Western Bell and later C&P. In the next few issues, we will “I think it is wonderful that continue to reflect on the Associa- Bill Jones discusses retiree issues with Cornell University and its membership con- the Association has that many tion’s proud and accomplished Dean Edward Lawler tinued to grow and make noise, it was featured members that are ready to fight history. We ask that you please in 2000 surpassed 100,000 members. prominently in prestigious and widely for our interest,” Ms. Becraft also share some stories about your As the new millennium began, the read publications like Fortune and Time told the Association at the time, years at the company or in retire- Association won important victories for Magazine, Business Week, Crain’s New “It is very surprising that we ment with us. Please write or th pre-1995 retirees, campaigning for and York Business and more. ended up being the 100,000 email us your favorite memories earning lump sum COLA payments as In 2002, New Jersey retiree Jack members to join. What a stroke or share them with us on Face- well as an increase to the minimum pen- Brennan became the Chairman of the of luck. When we retired, we book. We look forward to hearing sion payments. The Association waded Association, which he still serves today felt like the world forgot about them. into national policy by drafting federal as President. us and there was nobody look- Thank you for being part of ing out for our interests. Now legislation to prevent corporations from The next year was a truly remarkable Luther and Margaret Becraft, the Associa- our history and success. we are part of a group that looks Some 475 retirees gathered on St. Patrick’s day in Sarasota, In our next issue we will look cancelling and reducing retiree health one for the Association. Building on its tion’s 100,000 and 100,001 member. out for each other and is always FL to be a part of the Association’s 2004 annual meeting. back at the years 2006-2010. 2016 Spring Belltel.qxp_12pages 2/5/16 1:28 PM Page 8

8 BellTel Retiree Spring 2016 Why Retirees Should Picket By: Mike McFadden, Southern Rep, IBEW Local 827 Retired ince August 2015, Verizon work- ers from the unions IBEW and SCWA have been working without a contract. Retirees from IBEW Local 827 of New Jersey have been participating in active weekly pickets across the state to help achieve a new contract for these workers and their families. photo credit: William Fieger Lately, mostly due to the weather, fewer retirees have been coming out to Retirees picket outside of a Verizon Wireless store in Williamstown, N.J. the Wednesday pickets, though our numbers in the Southern Division of It occurred to me recently that per- without our union. our local in NJ are still very good. At haps a lot of retirees do not realize You can find details on where to the end of January, even with cold, exactly what is at stake for us if the picket by contacting IBEW Local 827 damp weather, we still had very good company gets its way with its current headquarters at turn out. proposals for retirees. 609-443-4100 or I think it is great that there are so These proposals would have an www.ibew827.com. many people coming out regularly and adverse impact on retirees’ future Stay strong, stay positive and stay that so many of our retirees have been financial well-being and quite possibly informed. able to renew old acquaintances from the quality of our medical care. Ulti- our working days. One person told me mately, the consequence of most of the that she and her husband look forward current proposals pale in comparison to Participate In New University to coming out; even though her hus- the company’s push to no longer nego- band never worked with us, he has met tiate with the union for their retirees. Pension De-Risking Survey new people with common interests and Having witnessed takeaways suf- e urge you to participate in a they have become friends. Other fered by non-union retirees, I am work- new online academic survey passersby also stop to chat or offer a ing very hard – along with so many W “thumbs up.” other retired brothers and sisters - to about Verizon’s pension de-risking Even when we get a good turnout, preserve our right to be represented. I actions. we are still a long way from our poten- understand that many of you can’t join The results will tial, as there are hundreds of retirees in us but perhaps you can help out in be used for a the Southern Division, which includes some other way. Wilmington Uni- Burlington, Gloucester, Atlantic, Cam- Please stay informed and realize versity research den, Salem, Cape May and parts of what is at stake for you and your fami- Ocean counties. ly. Think about what would happen project. All survey responses will remain anonymous. The study is expected to be complet- ProtectSeniors.Org ed by the summer of 2016 and results www.protectseniors.org will be released by that time. We are fighting to keep our earned retirement benefits secure: In addition to their academic value, HEALTHCARE PENSIONS SOCIAL SECURITY MEDICARE responses and opinions may also help HELP US BY: Become a Grassroots Leader influence future corporate and govern- Sign on and contribute at Respond to "write to ment de-risking decisions. www.protectseniors.org Congress" requests. To participate in the survey, go to Receive timely updates Take part in our surveys the link below: Call: 800-398-3044 /email: [email protected] Donate Today to: https://www.surveymonkey.com/r/6 ProtectSeniors.Org, P.O. Box 476, Cold Spring Harbor, NY 11724 We appreciate your financial and grassroots support. V725K8 ProtectSeniors.Org is a 501(c)4 organization. Contributions are NOT tax deductible. Paid for by ProtectSeniors.Org 2016 Spring Belltel.qxp_12pages 2/5/16 1:28 PM Page 9

Spring 2016 BellTel Retiree 9 BellTel Retirees’ U.S. Supreme Court Case How Do We Afford That? continued from page 1 “Resolution of the issues in this case is he Association is already quite busy in 2016, with a lawsuit pend- enormously important, as it potentially ing before the U.S. Supreme Court, (Pundt v. Verizon) seeking affects the retirement income security of Tthe right of retirees to argue legally about the mismanagement of millions of plan participants,” the Center their pension assets, before it’s too late. How do we pay for that? said. With the pensions of tens of thou- Again in 2016, we have another shareowner proxy to close a loophole sands of Verizon retirees, including and limit golden parachutes for executives. Throughout our history we union members, still directly managed have 11 proxy wins. Again, how do we pay for that? by the pension plan, the outcome of the We are having a meeting in Washington, D.C. with the head of the litigation will have wide-ranging, nation- al effects. Pension Benefits Guaranty Corporation over concerns about pension de- “It is incredibly significant that our risking. We have also asked the U.S. Department of Labor to tighten case has reached such important legal fiduciary conflict of interest regulations that would stop pension man- heights and now sits on the doorstep of agers from having conflicts of interests harmful to all retirees. How do the Supreme Court, which has final say on all matters it takes up,” said BellTel we pay for that? President and Executive Director John Our Association also supports ProtectSeniors.Org, which is success- Brennan. “Very few cases ever make it fully drafting and passing legislation in the states and on Capitol Hill to this far.” protect retirees’ earned pensions and benefits. If the highest court in the nation Once again, how do we pay for all of this activity? accepts the case and the Association obtains a favorable ruling, it will empow- It’s a great question. It starts with over 12,000 annual volunteer hours, er retirees to hold fiduciaries more the support of a loyal team of professionals and your member contribu- accountable for their decisions, far tions. beyond what they are now able to do. It Last year, both total donations and the number of contributions were is another crucial front in the battle against Verizon’s attempts to limit or down, although the average donation was up. Still, this did not come completely cut its responsibility to its close to covering our costs to effectively wage these many necessary retirees. campaigns. The Association is represented by We need your financial support today more than ever. Please help us ERISA law sharpshooter Curtis

Kennedy, who has also served as keynote carry on the fight.

speaker at several annual BellTel member meetings.

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 pensions and benefits of all retirees and active employees. Enclosed is my tax-deductible donation: Other $______ $100 $75 $50 $36.50 $30 We appreciate any amount you can donate $______Or use your credit card. Visa Discover Amex MasterCard Credit Card Acct.#______/______/______/______Expiration Date_____ Three digit code on back of card: _____ Name______Address______City/State/Zip Code______E-mail______Telephone #______I am a: Management retiree _____ Union retiree ______Other _____ Company Retired from:______You can also donate online by going to our web-site www.belltelretirees.org and click on the DONATE NOW button. Consider a recurring donation—which is an easy and safe way to budget your contribution. 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, its subsidiaries and retirees who were transferred to Idearc/SuperMedia/DexMedia. SPR16 2016 Spring Belltel.qxp_12pages 2/5/16 1:28 PM Page 10

10 BellTel Retiree Spring 2016 Retiree Spotlight: Part-Time H.S. Job Becomes Life’s “Calling” ll her life, Audrey Audrey said it is not without its can’t sit back and expect the Association Niecpiel has been a challenges. She shared that of BellTel Retirees to do all the work. Aperson of action. Some when her husband retired, he People need to speak up and participate.” people are talkers, speaking of joked that he didn’t think he With these concerns in the front of things they wish they could would make it to 75, and is her mind, Audrey Niecpiel is an avid change; others are doers, fight- now into his 80s. He has been supporter of The Association of BellTel ing the good fight to make struggling with diabetes for the Retirees. As a member, she often shares those changes take place. last 25 years and she helps care copies of the newsletters with her old col- Audrey has always been a for him. leagues and keeps them informed about fighter, seizing every opportu- To that end, health care is issues. She also appreciates the retiree nity to make things better. among Audrey’s biggest con- proxy victories the Association has won, Even as a teenager, the for- Audrey Nowak Niecpiel cerns. She finds it unfair that giving them a greater voice in the compa- mer Audrey Nowak was the companies try to change the ny. proactive type. In 1954, the high school rules by forcing retirees to pay into health “I feel so lucky to have them watching senior from Buffalo, N.Y., had earned plans they had been told were already my back and sticking up for us,” Audrey enough credits to attend school for only earned and paid for. These unexpected said. half a day. Not content to simply waste costs wreak havoc with the budgets of Do you have a story to share? Let us the extra time as others her age might, seniors living on fixed incomes. know. she and a friend applied for jobs at New “It’s like they are punishing us for York Telephone, where she was hired as being healthy and living longer,” Audrey an operator, working half days while fin- said. “We made the company what it is ishing school. She spent three years as an today.” operator before taking time off to have a It wasn’t always this way. Among family. She and her husband Walter, Audrey’s most meaningful experiences at Association of BellTel Retirees Inc. who worked for General Mills, raised the company was working in the benefits UNITED, TO PROTECT OUR FUTURE three children. department. She recalled the caring and Published by: Association of BellTel Retirees Inc. After six more years, determined to respectful way retirees were treated. P.O. Box 33, Cold Spring Harbor, own a home, Audrey went back to work That changed as the years went by. In New York 11724 • (631) 367-3067 to realize that dream sooner. She went 1990, workers went on strike during website: www.belltelretirees.org on to a successful and diverse career at contract negotiations when the company E-mail: [email protected] Hotline: (800) 261-9222 NY Telephone, spending time as an wanted to cut the Medicare cap in half. A 501 C3 IRS tax-exempt corporation operator, in the plant department in Audrey stood up in the union meeting Circulation Exceeds 134,000 records and payroll. She also worked in and told her fellow members to think President and Executive Director: the residential and benefits departments about their benefits and how they were at John M. Brennan, (201) 666-8174 before completing her career in 1991 as risk. Back then, she was brushed off, but Senior Staff Manager an order writer. boy, did her predictions prove accurate! Susan Donegan (631) 367-3067 “I was so proud to be a part of the “Things fell apart since then, and now Assistant Manager company when they treated you like what’s happening is criminal,” she said. Stef Baker (631) 367-3067 Board of Directors: family,” Audrey said. “If you worked “After 1991 retirees had to pay into their Jack K. Cohen, Chairman hard you were rewarded.” She remem- health insurance. This was an expense (914) 245-3129 bers a charm bracelet given to operators they didn’t plan on. We expected to have Eileen T. Lawrence, Executive Vice President (718) 229-6078 for good customer service, with each exactly what we had when we were work- Robert Gaglione, Treasurer charm representing a different milestone ing.” (516) 676-0937 achieved. Audrey has maintained her interest in Pamela M. Harrison, Secretary One of her most significant memories fighting for retiree rights. After hearing V.P. Union Relations (845) 225-6497 John Kolimaga, Director (215) 675-5992 was being tasked with changing the about the success of ProtectSeniors.org in Donald R. Kaufmann, Director (717) 398-2423 directory listings for the University of passing de-risking protection legislation David J. Simmonds, Director (732) 636-4847 Buffalo. Since no master list existed, she into law in Connecticut, she wrote to John W. Hyland – Director (845) 490-0713 Thomas M. Steed – Director (914) 213-5909 had to create it from scratch, a massive New York Governor Andrew Cuomo, Louis Miano, Director Emeritus (781) 444-8080 undertaking that ultimately succeeded personally asking him to help New York Robert A. Rehm, Director Emeritus (516) 827-0801 and earned an award. protect its retirees. C. William Jones, In 1991, Audrey opted to retire early. “We are fed up with the corporate Board Member, Emeritis (410) 310-8533 Her husband, Walter, was also up for greed and de-risking,” she said. “If we HAVE A QUESTION? retirement and they decided to retire have to fix this problem state by state, Call 800-261-9222 or together so they could travel and babysit that’s what we are going to do. If my let- Email: [email protected] their four grandchildren. ter gets even one more person to reach Advertising Information Having no regrets about early retirement, out to public officials it’s worth it. We (631) 367-3067 2016 Spring Belltel.qxp_12pages 2/5/16 1:28 PM Page 11

Spring 2016 BellTel Retiree 11 RETIREE NEWS AND NOTES By Bill Jones breakfast and conver- n the morning of January 6, sation with retirees 2016, I made my second visit mostly from GTE Oto the GTE/Verizon Breakfast and Verizon, y’all feel Group in Grapevine, Texas. No, I did free to drop into the not travel from Long Island, New York Waffle Way. or from Easton, Maryland. I moved to * * * Frisco, Texas in 2013. The breakfast On January 15, group meets almost every Wednesday 2016, Board Mem- morning at the Waffle Way, 1206 bers John Hyland and West Northwest Highway, Grapevine, Jack Cohen met with Texas. a retiree club from I knew about this group because a Putnam County to member, Roger Gallenstein, a GTE GTE/ Verizon retirees gather in Grapevine, Texas discuss retiree issues retiree and member of the Association all sorts of news about the telephone at the Eveready Diner in of BellTel Retirees and ProtectSe- industry, fishing, religion, politics, Brewster, New York. niors.Org, has for many years kept me medical coverage, love, marriage, or up-to-date on news about retirees and, whatever comes up. Someday, perhaps specifically, about GTE/Verizon retiree one of the members will write a story news in Texas. about what happens in a Texas diner Roger has been attending the break- when a bunch of old friends get togeth- fasts at the Waffle Way since 2004. er for breakfast. The group’s current leader, John Jensik, Finally, I want to thank Roger, has an email list of about 150 potential Ralph Mayfield, Ed Beauvais, Becky breakfast attendees from all over the Munsell, Claudia Hauft, Dennis globe who occasionally drop in for (Spike) Murawski, Ken McMillan, breakfast. For instance, for the last John Jensik, Duke Tracy, Bill Man- Retiree club meets in Brewster, NY. three weeks, Duke Tracy has been to ning, John Rollins and Vic Kleiss for the breakfast and he lives in Oregon! their hospitality and hope to visit the If you have news to share or an upcom- Another attendee, Jeff Lapatra, who GTE/Verizon Breakfast Group again in ing retiree gathering and would like to attended on 12/30, has a farm in the near future. invite a member of the Association to Greenville, Texas and lives in Irving, If you are ever in Grapevine, Texas speak, please contact the office at 1-800- Texas. on a Wednesday morning at 9:00, 261-9222 or via email at The group is eclectic and discusses remote as that may be, and feel like [email protected]. Help From Medicare’s New Blue Button Program hile new technology might The Medicare Blue Button program latest information, without having to seem intimidating at first, it can also help your family access your wait for the traditional U.S. Mail. Wcan significantly simplify life medical history if they need to fill out Please send your email address to for retirees in many ways. For example, paper work with or for you. You can go [email protected]. We will there is a new program offered by online to Medicare.gov to access the not sell or share your personal informa- Medicare called Blue Button. It allows data. The program can also be found at tion. Also, please add us to your ‘con- Medicare recipients to easily download http://1.usa.gov/2028qbM tacts’ list so our emails are not misdi- all their Medical claims data for record * * * rected to your spam or junk folder. keeping and includes a complete list of Likewise, over the years, the Associa- If you do not want to purchase a all your medications in a simple text tion has grown and adapted with computer, one is always available free at file. You can then bring information emerging technology. We now have your local library or try a smart phone. with you to the doctor or allow your Facebook and Twitter pages to con- It costs nothing to create or have an family access to make it easier on you. verse with fellow retirees and our own email account. Visit free services like If you want help getting started, YouTube video channel. gmail.com, yahoo.com, hotmail.com or your children and grandchildren are a By having your email on file and by many others to set up a free account. It great resource to get you up and opera- connecting with us on our social media is never too late to learn. tional! platforms, we are able to send you the 2016 Spring Belltel.qxp_12pages 2/5/16 1:28 PM Page 12

12 BellTel Retiree Spring 2016 NEWS Verizon looks to sell off its begin testing its new network in business Boston, San Francisco, and New York erizon plans to sell its data center City following tests at its headquarters. Vbusiness in a potential $2.5 bil- Verizon CEO and Chairman Mr. lion deal, according to Reuters. Lowell McAdam noted that the 5G One source who spoke its rivals: AT&T, Sprint or T-Mobile. network speeds will be up to 200 times to Reuters said Verizon’s business cen- This enables customers to pay off faster than Verizon’s current 5 Mbps ter assets include 48 data centers, either the rest of their wireless contract average speed. which currently generate earnings of or the remaining device payments The average wireless subscriber uses about $275 million. Despite the fact owed to their current carrier. Anticipated rise in data usage that Verizon acquired , a Anyone who switches their existing

data center operator, in 2011 for $1.4 number, purchases a new smart phone 14 billion, it is now looking to rid itself of or trades in their old one can receive a 12 these assets. pre-paid card with up to $650 on it, 10 8 According to sources, Verizon was depending on the value of their phone. 6 planning to sell its entire enterprise The new customer will then pay con- 4 tract termination fees out-of-pocket. 2

business for $10 billion, a unit that data usage per month in GBs 0 includes the former MCI, which Veri- Verizon will also give customers 2016 YEARS 2020 zon acquired in January 2006, and also who switch from other carriers an extra the Terremark data center business. 2GB of data per month for however 2.4 GB of data per month, but by Other telecom companies, AT&T long they stay with Verizon. 2020 that will jump to 14 GB per and CenturyLink are also looking to Last year, T-Mobile began market- month. sell off their data center businesses. ing and soliciting competitors’ cus- “What 5G is, is much more Windstream, a provider of voice and tomers by paying off its rivals’ early designed for video,” said McAdam. data network communications, sold its termination fees. Lots of customers ”We call it more use-case defined. It data center business to Tierpoint, a made the switch and now Verizon and will be more point-to-point solutions.” data center specialist, for $575 million others are following suit. According to analysts, Verizon’s last October. Verizon’s 5G network network traffic has been growing by rolls out in 2017 75% each year and its data traffic from Verizon offers cash erizon Communications is look- video is expected to grow 55% each incentives to change carriers Ving to roll out its futuristic 5G year over the next five years. erizon is offering up to $650 for network in 2017. The company will Vcustomers to switch from one of GO GREEN This newsletter is available to you on-line. If you wish to receive ONLY an on-line copy, please email us at [email protected] and put in the Subject line of the email –GO GREEN. Please give us your name, mailing address and email address so we can make the change