Verizon Will Reduce Retiree Health Benefits for Some Employees
Verizon Communications on Monday said it will contribute less to the health care benefits of managers when they retire as part of a broader effort to restructure its pension and health care plans, the New York Times reports. After July 1, 2006, employees with fewer than 15 years at Verizon will never become eligible for retiree health benefits, but they will have the option of paying for a health plan themselves. Verizon now pays 50% to 80% of the health care premiums for retired employees who worked 15 to 30 years at the company, the Times reports. The efforts to reduce pensions and health care benefits are aimed at saving $3 billion over 10 years. The company's 200,000 currently retired employees and 105,000 union workers will not be affected by the changes, but the company "may be setting the stage for concessions it may hope to gain from its unionized workers in the next round of negotiations," according to the Times (Belson/Richtel, New York Times, 12/6).NPR's "All Things Considered" on Tuesday reported on Verizon's announcement. The segment includes comments from Karen Friedman, policy director of the Pension Rights Center; Dallas Salisbury, president and CEO of the Employee Benefit Research Institute; Peter Thonis, spokesperson for Verizon; and Verizon managers (Speer, "All Things Considered," NPR, 12/6). The complete segment is available online in RealPlayer.
In addition, ABCNews' "World News Tonight" on Tuesday reported on the announcement. The segment includes comments from Friedman; Alice Munnell, director of the Center for Retirement Research; and Verizon employees (Stark, "World News Tonight,' ABCNews, 12/6). A related ABCNews.com story is available online. This is part of the Morning Briefing, a summary of health policy coverage from major news organizations. Sign up for an email subscription.