Update to Your SPD Benefit Booklets: Summary of Benefit Changes Resulting From Collective Bargaining
Verizon Pension Plan for New York and New England
Associates
Verizon Savings and Security Plan for New York and New
England Associates
Verizon Medical Expense Plan for New York and New
England Associates... X
Verizon Dental Expense Plan for New York and New England
Associates
Updated Disability Claims and Appeals Procedures
This information is a supplement to your summary plan description (SPD) booklets for these plans:
· Verizon Pension Plan for New York and New England Associates,
· Verizon Savings and Security Plan for New York and New England Associates,
·
Verizon
Medical Expense Plan for New York and New England Associates,
· Verizon Dental Expense Plan for New York and New England Associates,
· Verizon Vision Care Plan for New York and New England Associates,
· Verizon Health Care Spending Account for New York and New England Associates,
· Verizon Sickness and Accident Disability Benefit Plan for New York Associates,
· Verizon Sickness and Accident Disability Benefit Plan for New England Associates,
· Verizon Sickness and Accident Disability Benefit Plan for New York and New England Associates of Non-Regulated Companies and
· Verizon Long‑Term Disability Plan for New York and New England Associates.
This update is a summary of material modification (SMM) and includes the most recent collective bargaining provisions related to the benefits agreed to between your union and Verizon for the plans listed on the previous page. The most recent collective bargaining provisions related to your medical benefits are communicated separately. Specifically, your medical benefits SPD booklet for the Verizon Medical Expense Plan for New York and New England Associates and the Verizon Alternate Choice Plan for New York and New England Associates has been updated to include these provisions. Please keep this SMM with your SPD booklets for future reference.
If you have any questions after reading this information, please call the Verizon Benefits Center at 1-877-Ask-VzHR (1-877-275-8947) and speak with a Benefits Center representative.
Supplemental earnings taken into account in determining a participant’s supplemental monthly pension benefit will include in 2003 the single lump‑sum payment equal to 3% of the associate’s basic weekly wage for one year. This payment was calculated as of August 3, 2003 and paid by October 31, 2003.
For an associate participating in the pension plan who terminates employment with a vested benefit between October 1, 2003 and December 31, 2003:
·
The pension band used to
calculate the associate’s basic monthly benefit will be increased by 5%. For
associates with multiple bands, the 5% pension band increase will apply to all
pension band values used in the associate’s
benefit calculation. (The increase does not apply to any supplemental
benefit or to the minimum monthly pension benefit, if applicable.)
·
The associate will have the opportunity to elect a lump‑sum
distribution (cashout) of his or her pension benefit. The associate may elect
to receive a lump-sum distribution on a commencement date that is the day
following termination of employment or the first day of any following month.
However, any commencement date must be elected in writing in advance of such
date. Additionally, if termination of employment occurs no later than November
30, 2003, the associate’s lump‑sum distribution amount will be the larger
of the lump sums determined using:
¾ The third quarter 2003 interest rate and mortality table basis, or
¾ The interest rate and mortality table basis effective under the pension plan when the associate’s commencement date occurs.
The pension band basic monthly benefits shown on page 16 of your pension plan booklet will increase as shown in the chart below over the term of the collective bargaining contract. These pension band basic monthly benefit amounts reflect a 2% increase effective November 1, 2004, and a 3% increase per year thereafter effective October 1, 2005, October 1, 2006 and October 1, 2007. The increased monthly benefit amounts apply to associates with “pension effective dates” (i.e., first day following the last day on the payroll) on or after the applicable effective dates shown in the table below.
|
Monthly Benefit Effective
July 1, 2003* |
Monthly Benefit Effective
November 1, 2004 |
Monthly Benefit Effective
October 1, 2005 |
Monthly Benefit Effective
October 1, 2006 |
Monthly Benefit Effective
October 1, 2007 |
|
|
101 |
$34.37 |
$35.06 |
$36.11 |
$37.19 |
$38.31 |
|
102 |
$35.83 |
$36.55 |
$37.65 |
$38.78 |
$39.94 |
|
103 |
$37.33 |
$38.08 |
$39.22 |
$40.40 |
$41.61 |
|
104 |
$38.74 |
$39.51 |
$40.70 |
$41.92 |
$43.18 |
|
105 |
$40.19 |
$40.99 |
$42.22 |
$43.49 |
$44.79 |
|
106 |
$41.64 |
$42.47 |
$43.74 |
$45.05 |
$46.40 |
|
107 |
$43.12 |
$43.98 |
$45.30 |
$46.66 |
$48.06 |
|
108 |
$44.57 |
$45.46 |
$46.82 |
$48.22 |
$49.67 |
|
109 |
$46.04 |
$46.96 |
$48.37 |
$49.82 |
$51.31 |
|
110 |
$47.46 |
$48.41 |
$49.86 |
$51.36 |
$52.90 |
|
111 |
$48.92 |
$49.90 |
$51.40 |
$52.94 |
$54.53 |
|
112 |
$50.39 |
$51.40 |
$52.94 |
$54.53 |