Verizon freezing managers' pensions; firms phase out plans

Verizon freezing managers' pensions; firms phase out plans

By Stephanie Armour, USA TODAY Tue Dec 6, 7:43 AM ET

Verizon Communications (VZ), the nation's second-largest telecom,
said late Monday it was restructuring retirement benefits for 50,000
managers in a bid to save $3 billion over the next 10 years.

Under the plan, managers will no longer earn pension benefits or
receive service credits toward retiree health care benefits starting
in July.

Verizon is acquiring MCI, and the combined company will also increase
the 401(k) matching dollars for about 30,000 MCI managers who join the
company after the deal closes.

As companies look to control costs, even financially healthy employers
are freezing or cutting pension plans in a sign the time-honored
retirement system is increasingly being chipped away.