What is your Pension worth in today's dollars?

If you retired from a NYNEX company in 1971, the most poorly treated retirees, your pension buying power is only 34% of what it was in 1971 - even with the ad hoc increases that the company granted prior to 1992.


If you retired from any Verizon company in 1994, your pension buying power is 28% less than it was when you retired.
 
We are working hard to get pension increases for all retirees.
 
See Chart below.

PENSION BUYING POWER EROSION CALCULATOR

Updated 01/11/08

Inflation Rates / Pension Increases
 
Year

Inflation Rates

Ad Hoc Pension Increase

Buying Power $1000
(No Increases)

Buying Power $1000
(With Increases)
1971

3.3

?

 (10/1/71)

$1000

$1000
1972

3.4

-

967

967
1973

8.7

-

934

934
1974

12.3

8.0

 (1/1/74)

853

921
1975

6.9

-

748

808
1976

4.9

-

696

752
1977

6.7

7.2

 (1/1/77)

662

767
1978

9.0

-

617

715
1979

13.3

16.0

 (12/1/79)

562

755
1980

11.6

-

487

654
1981

7.9

9.0

 (7/1/81)

431

631
1982

3.4

7.5

 (10/1/82)

397

625
1983

3.3

-

383

603
1984

2.0

-

371

583
1985

3.3

4.5

 (4/1/85)

363

597
1986

2.0

-

351

578
1987

3.8

-

344

566
1988

3.8

4.5

 (5/1/88)

331

569
1989

3.9

-

319

548
1990

4.8

-

306

526
1991

3.8

5.0

 (1/1/91)

291

526
1992

3.1

-

280

506
1993

2.9

-

272

490
1994

2.9

-

264

476
1995

2.5

-

256

462
1996

2.9

-

250

451
1997

2.0

-

242

438
1998

1.5

-

238

429
1999

2.4

-

234

422
2000

3.9

-

228

412
2001

1.2

-

  

220

396
2002 2.5 -   214 386
2003 1.8 -   210 379
2004 3.2 -   203 367
2005 3.4 -   196 355
2006 3.2     190 344

VERIZON PENSION PLAN STATUS

(CONSOLIDATED NYNEX & BELL ATLANTIC)

in millions of dollars
Year

Beginning

Balance

Earnings

Benefits

Paid

Ending

Balance

Fund

Net Change

Excess Funds

 

1996

 $28,988 $4,298 $1,955 $31,066 $2,078 N/A

1997

 31,066 6,194 2,042 35,253 4,187 8,521

1998

 35,253 4,019 2,371 36,967 1,717 8,886

1999

 36,967 6,214 2,713 40,502 3,535 15,064
VERIZON PENSION PLAN STATUS
(CONSOLIDATED GTE& BELL ATLANTIC)
After Merger 
(in Millions of Dollars)
1999 54,915 9,129 4,903 59,141 4,226 26,145
2000 59,141 1,294 5,210 55,225 (3,972) 22,089
 

2001

 55,225 (3,063) 3,851 48,558 (6,667) 12,167
 

2002

 48,558 (4,678) 5,892 38,676 (9,882) 768
 

2003

 38,676 8,671 3,925 42,841 4,165 1,798
 

2004

 42,841 4,874 8,989 39,106 (3,735) 1,711
 

2005

 39,106 4,246 2,977 40,990 1,884 3,429
 

2006

 40,990 5,536 2,762 41,509 519 7,350
Source: Verizon Annual Reports

Your pension is still safe but it has taken a major hit since its high-water mark in 1999.  The poor stock market performance and high payments to those who retired early have reduced fund assets by over $18 billion.  It's on the way back but is still just 1/3 of the 1999 high.

CAN THE COMPANY LEGALLY TAKE AWAY YOUR HEALTH CARE BENEFITS?

Pension and Welfare Benefits Administration has studied this issue and found that under certain circumstances a company can discontinue its health care benefits for its retired employees. The complete brief can be read by clicking here.

While you consider these facts, you may wonder if the Executives of Verizon are going to have Health Care covered in their retirement years. Please don't worry, if they save just 10% of their paychecks for a few months they're going to be ok, consider this: a catastrophic illness for someone over 65 may cost 1.2 million dollars. This means it would be prudent for those top 5 Verizon Executives to be very careful to scrimp and save a million or two over the next 1-6 months to make sure they are covered. See 2004 proxy regarding their special pension arrangements that currently would allow them ample extra dollars to help defray any unusual rainy days for them.  This consistent year over year executive greed of jumping in front of the line before rank and file employees and retirees is not only unfair, it is morally wrong.

You can do something about this: Become a member of our Association. Then read our Newsletter after you receive our members area password and use our automated emails to key people.

The Association of BellTel Retirees Inc.
P.O. Box 33
Cold Spring Harbor
New York 11724
(631) 367-3067
association@belltelretirees.org
Updated 01/11/2008