41,000 Retirees Say Verizon Is Dumping Them
41,000 Retirees Say Verizon Is Dumping Them
DALLAS (CN) - Verizon is dumping its pension obligations to 41,000 retired managers at the end of the year and transferring them to Prudential, "simply to enhance its corporate credit rating," retirees say in a federal class action.
Lead plaintiff William Lee, on behalf of beneficiaries of the Verizon Management Pension Plan, sued Verizon Communications and five affiliates, and The Prudential Insurance Company of America, in Federal Court.
Verizon announced in October that it will no longer provide pensions to its 41,000 management retirees and that Prudential will provide them insurance annuities instead.
The plaintiffs say this "unprecedented" action violates the Employee Retirement Income Security Act and protections under the Pension Benefit Guaranty Corporation.
"Verizon, one of the most financially successful U.S. corporations, intends to 'de-risk,' or abandon, its long-term responsibility for financing and paying the pension obligations of 41,000 retirees, simply to enhance its corporate credit rating" the 40-page complaint states.
"Verizon is taking advantage of the group of retirees least able to defend themselves. Verizon is not engaging in the same or similar action with respect to nonmanagement employees or those management retirees formerly represented by unions."
http://www.courthousenews.com/2012/11/29/52660.htm
