Legislative Update

Our retiree health legislation, the Emergency Retiree Health Benefits Protection Act of 2000, is moving steadily toward introduction. In May, the initial printed version of the proposed bill, as edited by the Office of Legislative Counsel of the House of Representatives, was distributed, showing Rep. John Tierney (D. Mass) as the proposed chief sponsor, with Representatives Rob Andrews (D, N.J.), Carolyn McCarthy (D. N.Y.) and Dale Kildee (D. Mich), as the original proposed cosponsors. Generally, a printed version of legislation is not prepared unless there are imminent plans to introduce it.

Prior to authorizing the preparation of a printed version, Rep. Tierney’s office had it reviewed by technical experts at the U.S. Department of Labor. The Department is the agency chiefly responsible for administering the non-tax aspects of ERISA. The bill passed the Department’s technical review with flying colors, and although it is too early to determine whether the bill will receive the Department’s official endorsement (that will depend on the White House), it is safe to say that the Department has done nothing to discourage the early sponsors of the bill from actively pushing it ahead.

The bill was also sent out for review by the United Automobile Workers of America (UAW), a union that, directly or indirectly, has been involved in a fair amount of ERISA legislation over the loss of retiree health benefits, and is concerned about assuring the integrity of their collective bargaining agreements with respect to such benefits. At first it appeared that the UAW was hostile to the bill, but it turned out that this was a misunderstanding. In fact, the UAW offered a number of constructive technical criticisms of the bill that resulted in our Washington counsel recommending certain language changes for incorporation into the bill. We hope to be able to work closely with the UAW and other like-minded groups to assure that the bill has a successful legislative journey.

Since the bill represents a major capital congressional undertaking that is bound to arouse the hardcore opposition of certain employer groups, it is understandable that the initial sponsors of the bill are proceeding cautiously in the hope of strengthening the bill before its opponents try to gang up on it. We have been reassured, however, that the initial sponsors of the bill are all strongly supportive of it and intend to ready it for introduction as soon as certain staffing changes in Rep. Tierney’s office are completed. We are planning a major media and Congressional lobbying campaign as soon as the bill is introduced, and once it is introduced we will issue a special bulletin to all members with full particulars, including what each member can do to help get the bill enacted.

*A word(s) from one of our sponsors*

Who Wants To Be A Millionaire?

1999 was a boom year for… Ivan Seidenberg. The Chairman and Chief Executive Officer of Bell Atlantic, received a cool $13.1 million compensation package last year, according to an April proxy filed with the Securities and Exchange Commission. Compared to his 1998 compensation package of $3.1million, the last twelve months brought a $10 million increase to Mr. Seidenberg’s pockets. This cushy package consisted of $1.2 million in salary, a $2.1 million bonus and $9.8 million in other compensations.

As part of what looks like a rainy day fund, the "other compensations" received by Mr. Seidenberg included a $5.5 million incentive bonus as part of his retention agreement and $3.2 million in a special company contribution to his account under an income-deferral plan, just to name a few. Comparatively, Seidenberg received a $3.1-million compensation package in 1998, including a $1.2-million bonus, $850,000 in salary and $1.06 million in other compensation, according to the proxy.

The company had about $33.1 billion in total operating revenues last year and posted $4.2 billion in net income. Mr. Seidenberg was awarded 588,240 stock options worth almost $7 million at the time of the grant with a $55.75 per share exercise price, which expires in January 2009.

If Bell Atlantic has that type of money to throw around, why are they willing to offer only a lump sum payment plan for their retirees? Just as Mr. Seidenberg has claimed to earn all he has been given, so have the retired employees, who deserve to get what is rightfully theirs. Nearing retirement himself, Seidenberg, 53, should look into investing his money well, because the days of Bell Atlantic taking care of his financial needs are coming to an end. As we all know, after he steps through those doors for the last time, he too will be forgotten unless our pleas for respect and fair treatment are heard!

It’s true! And we show you exactly how to avoid the loss in our booklet "Annuity Owner Mistakes." The booklet is FREE and shows how to get more benefits from your existing assets and help preserve your annuity value. CALL SENIOR RESOURCE ASSOCIATION 800-697-3788

Lump Sum Options

By Ted Procas, NYNEX, 1990 Retiree

By now, retirees eligible for the one-time lump sum payment should have selected their distribution option. Many of you contacted me during the election period for assistance in selecting the option that was most appropriate for your own needs. I would like to share some of the most frequent questions and answers we gave during this time and some options that still exist even after the June 9, 2000 deadline.

Many of the questions involved IRA’s:

Q: Can I rollover more than $2000 to my IRA?

A: Yes, you can rollover or transfer the full amount of your payment without paying taxes until you withdraw the money.

Q: If I took the lump sum payment and I later decide to rollover part or all of the distribution into an IRA-IS IT TOO LATE?

A: No, you have 60 days from the date of the distribution to rollover all or part of your money into an IRA. Therefore, if you took a direct payment you can STILL avoid a one-year tax liability on the total payment by moving the money to an IRA.

Q: Can I have more than one IRA?

A: Yes, in fact there are important Estate Tax Planning reasons to have more than one IRA.

Q: If I am over 70 ½ can I open a new IRA?

A: Yes, but you are subject to the 70 ½ minimum distribution requirements. Further, selection of separate beneficiaries can assist with Estate Planning for persons over 70 ½.

There are also questions and confusion regarding annuities:

Q: Are our pensions annuities?

A: The Bell Atlantic pension is a form of annuity. The Company owns the asset and pays you for life, and to your designated survivor if you elect that option. This is sometimes referred to as an immediate annuity and most pensioners receive this benefit. However, there are also deferred annuities – where the Company also owns the asset but begins paying at a later date e.g. 65. The recent distribution offered three variations on the immediate annuity that provide monthly income for life. The Company owns the asset and realizes the growth potential. Retirees who avoided this option protected both their capital and growth.

Q: What other types of annuities are there?

A: Annuities are also insurance investments that grow tax deferred and you own the asset. You can select a fixed interest rate (Fixed Annuity) or select an annuity that allows you to invest in mutual funds that have growth potential (Variable Annuity). You have access to your money, can convert to a monthly stream of payments without losing principle and then pass the value of the annuity to your beneficiaries. This is often referred to as a deferred annuity.

Q: What is a guaranteed income annuity?

A: This is a new feature that some companies offer that provides potential for asset growth and at the same time guarantees a minimum income you can rely on regardless of how your asset performs.

Finally, please remember that you must complete the election form in order to receive your payment and consult you Tax Advisor for specific tax issues.

Editors Note. Ted Procas retired from NYNEX in 1990. He is President of his own Financial Services Company and is a licensed Investment Executive specializing in Retirement Planning and Investments.

According to Advertising Age, GTE and Bell Atlantic will spend more than $300 million a year promoting their soon-to-be-merged company, which will go by the name of Verizon. Retirees have been asking, "What the heck is a Verizon?"

Phone company insiders reportedly see the new name as a hybrid of the Latin word "veritas," meaning truth, and "horizon." But the irony of this shiny new name is bittersweet. The company is spending hundreds of millions of dollars developing and promoting its new name and yet they don’t have the money to compensate retirees who have not seen an ad hoc pension increase in a decade. Where’s the truth and horizon in that?

The decision to change its name is yet another way in which the company is abandoning its roots and running away from its once proud history. If Bell Atlantic wants to be "truthful," it should confront the concerns of retirees head-on instead of running away to Colorado to hold its shareholder meeting, changing its identity, and offering inadequate lump sum payments designed to appease retirees.

Litigation Update

At the end of May, our Washington counsel completed the redrafting of a massive 35-page complaint against Bell Atlantic for retirees health benefit violations of the Employee Retirement Income Security Act ("ERISA") and other federal law. The redrafting of the complaint reflected the results of an intensive inquiry into the history of the former NYNEX medical and dental plans, and innumerable revisions and changes to the plans that were made first by NYNEX in the mid-1980s, and subsequently by Bell Atlantic after the merger between the two companies in 1997.

Because of the complexity of many of the changes, and different or confusing descriptions of what they were intended to accomplish, including the most recent initiation of the Medicare Primary Plan for Retirees (MPPR) by Bell Atlantic, it was considered essential to engage in extensive consultation with our most knowledgeable members. This was done in order to assure, to the maximum feasible extent, the accuracy of the allegation made in the complaint and their specific connection to those of our members who will be named as plaintiffs in the complaint and who will represent the class of all our NYNEX retired members whose coverage for medical and dental benefits was adversely affected after they retired. This difficult but necessary work will assure that the complaints will stand up to critical scrutiny and rest on a foundation of solid credibility.

The revised complaint is now being checked by a team of retiree health benefits litigation experts that has been assembled to undertake the procedural and jurisdictional steps necessary to assure the proper filling of the complaint and its conformity to federal court rules. As soon all remaining technicalities are ironed out the complaints will be filed and appropriate measures taken to publicize what promises to be a historic ERISA lawsuit. Incidentally, once the complaints dealing with NYNEX retirees is filed, another complaint on behalf of the Bell Atlantic South retirees will be prepared for the filing based on the violations that involved the terms and conditions of the former Bell Atlantic South medical and dental plans.

The Bell Atlantic Employee Coalition for Retirement Security (BAECRS) has run periodic web site postings in support of membership recruitment for the Association of BellTel Retirees. The BAECRS Steering Committee ran regular messages in support of the two retirees’ shareholder proposals. BAECRS sent a representative, Janice Winston, to the Bell Atlantic annual meeting in Denver to offer support for the Association’s proposals.

During the meeting, Janice also brought attention to continuing concerns with the

Cash Balance Plan (CBP) and the Modified Former Pension Plan (MFPP) shortfalls (which include an outdated base salary window and early retirement penalties after 30 years of service). She also highlighted the discrepancy between the 26 weeks of medical leave allowed for management employees vs. the 52 weeks allotted to the associates for medical leave.

The employee coalition is in the preliminary stages of drawing up two shareholder proposals for next year’s Bell Atlantic Shareholder Meeting. These proposals will deal with Cash Balance Plan and other issues.

Since this is an election year, BAECRS is developing a "Hall of Fame" and "Hall of Shame" for their web site (www.bapensions.org). This will be an informational listing of politicians and whether or not they supported legislation for full pension restoration and protection.

BAECRS is optimistic that once the merger with GTE is completed, the new HR regime, under Randy McDonald, will be receptive to pension reform aimed at restoring full pension value for current and retired employees. BAECRS will attempt to open the lines of communications with Randy to request that the built-in pension reductions be removed.

In the event of a labor stoppage this August, the company is trying to line up retirees to come back and bail them out. We hope that most of the retirees will take into consideration how the current executives continue to chip away at retirees’ healthcare benefits and pensions. It is strongly recommended that retirees decline the company’s request for help.

Bob Brophy, an active Bell Atlantic employee and a member of the Steering Committee of the Bell Atlantic Employee Coalition for Retirement Security (BAECRS), has been elected to the Board of Directors. With a fresh insight on the struggle for employee and retiree pension and benefits rights, look forward to Brophy breaking new ground in this five-year battle.

A 31-year veteran to Bell Atlantic, Brophy has 15 years experience in technician jobs and 16 years in management positions. He is currently involved in the outside facilities engineering arena where he designs work orders and estimates, digital equipment and facilities. Age 53, Bob says he plans to work for seven more years.

Bob’s activism started with a letter writing/e-mail campaign to Bell Atlantic officers and HR representatives in July of 1999 about the way the Cash Balance Plan was implemented. He also keeps other management employees up to date on pension issues.

Brophy’s newest project is the creation of a Bell Atlantic resource group that will address the needs of older employees. The resource group, the Association of Career Employees, will be open to all employees but will be geared toward those 40 years of age and over. Mr. Brophy believes that "as the work force ages and many of us near retirement, we can be a resource pool for retirees. We don’t want our retirement benefits to be reduced by Bell, so it’s in the best interest of active and retired employees to unite to achieve common goals." Mr. Brophy lives in Lansdale, PA with his wife Christine and 4 children.

Send Us Your Medical Hardship Stories

 Now You Must Act:

All of the hardship situations you provide us will be researched and handed over the team of lawyers representing retirees in our Class Action Lawsuit against Bell Atlantic.

You can send us the information via U.S. Mail at the Association headquarters: PO Box 33, Cold Spring Harbor, New York 11724. If you are on the Internet, you can also e-mail us at: association@belltelretirees.org

The more documentation and details you can provide, the better. Due to the volume of information and number of responses, we unfortunately will not be able to take information over the telephone.

In all correspondence, please include your name, address, telephone number, e-mail if possible and the year and company from which you retired.

In late May, some 35,000 Bell Atlantic operators, technicians and service representatives

in New England and New York and their union, the Communication Workers of America threatened to strike as Bell Atlantic sought to increase co-payments for worker health plans, going against a prior contract agreement and in violation of Federal labor laws. The CWA called for a May 31 and mid-contract job action if Bell Atlantic did not retreat from its position.

In trying to prepare for the event of a strike in August, Bell Atlantic officials sent out a questionnaire to many retirees in the Association asking if they would work as replacements, if necessary. C. William Jones, President of the Association of BellTel Retirees called upon the 46,000 members of the pensioners group and all retirees to stand united in support of their union brothers and sisters and just say no to the company.

"There are 35,000 employees, 35,000 families that are fighting for the protection of

healthcare benefits that are being taken from them," said Mr. Jones. "We retirees are fighting the same fight against the same Bell Atlantic executives that have been gradually attempting to diminish and take away our benefits and those promised to our families. Both the CWA and the Association of BellTel Retirees must stand united for the rights of Bell Atlantic employees and retirees."

Federal labor law generally bars unionized companies from changing wages, benefits, hours or other conditions of employment, including health insurance coverage without first negotiating with the union. With this fact in hand CWA officials complained to the National labor Relations Board (NLRB).

Before a strike could be called, the matter went to a hearing before an NLRB administrative law judge. The judge ruled in favor of the CWA, noting that the company’s decision to raise co-payments on doctor visits was an unfair labor practice. The ruling forced the company to come to an agreement with the union.

In the agreement, Bell Atlantic agreed to reverse any increases in co-payments for doctor visits, prescription drugs, emergency room visits and other items. Bell Atlantic also agreed to reimburse the workers who had to pay the increased co-payments.

This August will be the expiration of the current two-year contract for the workers. A major issue expected in those negotiations is the union’s insistence that Bell Atlantic allow thousands of non-union workers in its cell phone division to unionize in a manner that would simply require a majority to sign cards saying they want a union. The company, on the other hand, it is expected to demand that the workers take part in a more time consuming formal voting process.

 Retiree Volunteer Jim Casey (Retired Bell Atlantic/Chesapeake and Potomac Telephone, Maryland 1991]

Your Association is only as strong as its membership and the support it receives from the 46,000 retirees on our roster.  Obviously, financial support is critical and greatly appreciated.  However, there is a tremendous contribution in unpaid volunteer time and, being human, we tend to take it for granted.  After a while, it becomes routine -- someone's job.  We want to amend that impression.  As a way of showing our appreciation, we'd like you to know who these people are and share with you the help they give to all of us.  We will focus on several volunteers in upcoming issues, and we kick off this column with Bell Atlantic Virginia retiree Jim Casey (Bell Atlantic/Chesapeake and Potomac Telephone, Maryland, 1991).

Casey was elected to the All-Volunteer Association Board of Directors in 1998 and quickly set out on a program to upgrade the technological sophistication of the organization – he currently serves as Vice President of Information Services. In the role as our retiree technology guru, Jim helped improve communication systems at our headquarters in Cold Spring Harbor, New York and with the membership at-large. This included launching the redesign of our on-line version of the BellTel Retiree newsletter; providing an upgrade of the services available through our member website (www.belltelretirees.org); and implementing a member news service providing the latest company, capital hill and pension news to subscribers.

Casey has also provided Association members with the ability to more easily research information and communicate in writing with their elected representatives in Congress and the US Senate, without ever having to pick up the phone or lick a stamp - just to name a few things.

Jim began working at Chesapeake and Potomac Telephone in 1968 in the commercial department where he held numerous positions in Washington D.C., Maryland, and Virginia. He retired as a Bell Atlantic staff manager at the Minicomputer Maintenance and Operations Center in Silver Spring, Maryland.

It’s amazing what technology has done, making our lives and the very complicated task of fighting for retiree economic justice a bit easier. Because Jim brought his vast technological skills to the table to aid our efforts, the members and the Association in general have benefited greatly. A tip of the hat to Jim Casey for his dedication, hard work and the donation of his time to help all Bell Atlantic retirees in our fight to win back our rights.

The Association is always looking for a few good recruits. If you are able to volunteer time, or special skills we want to hear from you. Please call our office at (631) 367-3067.

Under the watchful eye of local and national media, the Association of BellTel Retirees Inc. presented their issues and voiced their concerns to nearly 500 members at the 2000 Annual Meeting in Syracuse, New York. The atmosphere at the standing-room-only event was upbeat and energetic but all were mindful of the disheartening reason for their gathering: to fight their former employer for pension and benefit rights promised upon retirement.

Retirees from across the northeast packed the Liverpool Holiday Inn Convention Center in Syracuse to show their support for the Association and to hear the latest news from the Board of Directors. The Mayor of North Syracuse, James Hotchkiss, himself a company retiree, opened the meeting with a welcome on behalf of his city. Association Treasurer Eileen Lawrence (NYNEX-NY) delivered a report outlining the Association’s financial status and, Jack Sellen (Bell Atlantic-NJ) delivered the Secretary’s Report.

Government Relations Vice President Joe Ristuccia (NYNEX-NY) explained the latest developments and fielded questions regarding the Association’s burgeoning litigation and legislative efforts. Active Bell Atlantic employee Bob Brophy (Bell Atlantic-PA), recently elected to the Board of Directors, introduced himself to the membership in attendance and discussed plans for the role active employees will play in the Association’s future.

At the conclusion of the formal presentations, the crowd engaged in a spirited question and answer discussion with the Board Members moderated by Association President Bill Jones (NYNEX-NY) and Public Relations Vice President Lou Miano (NYNEX-MA). Among the hottest topics discussed during the hour-long session were the lump sum payments, the legal efforts, and the proxy results (See related articles). Regarding the proxy results, Bill Jones was quick to point out that the Bell Atlantic annual shareholders meeting in Denver, Colorado was attended by only about a quarter of the attendees who made it to the Association’s meeting.

Booths were set up by Empire Federal Credit Union, Cap Com Financial Services, Meri-Care, Inc., and Nation Corporate Benefits Administrators, Inc to support the Association and provide members with information about their services.

Special thanks go to Board Member John Parente, coordinator Pat George, and all the Syracuse Life Member volunteers for their many months of planning to the make the event an overwhelming success.

We have received many inquires from retirees about the Death Benefit, how it is calculated and how it is paid. According to a recent confirmation from the company, the Bell Atlantic Company Death Benefit is equal to the pay for one year as of June 30, 1985, or the day before you retired if you retired prior to that date. This also applies to retirees of companies now merged into BA.

Keep in mind, you cannot name a beneficiary for this death benefit. The beneficiaries for this benefit are called "mandatory beneficiaries." If you are married at the time of your death, the mandatory beneficiary is your spouse if your spouse is living with you at the time of your death.

If you do not have a spouse, your mandatory beneficiaries are your unmarried dependent children under age 23, or any age if disabled and incapable of self –support. Your parents who are dependent upon you for support are also eligible. If there is more than one mandatory beneficiary when you die, the Bell Atlantic Claims Committee will determine how the benefit is paid to your surviving beneficiaries. If there is no eligible beneficiary for the death benefit, there will be no payment.

If you do not have a statement showing the exact amount of the death benefit you are entitled to, call the InTouch Center at 1-877-BELL-ITC (1-877-235-5482), or the Teletypewriter (TTY) for the hearing impaired at 1-800-833-8334, and request a copy. You should keep this statement with your important papers. The automated voice response system is available 24 hours a day, seven days a week. InTouch Representatives will provide you with one-on-one assistance from 8 a.m. to 5 p.m. Eastern Time, Monday through Friday, excluding Holidays.

Bell Atlantic Carefully Avoids Angry Retirees By Moving Annual Meeting to Distant Rocky Mountains

Retirees want to know, why would a company with the word ‘Atlantic’ in its name and the vast majority of its business on the east coast decide to hold its annual meeting in the Rocky Mountains of Colorado? The answer is simple. Company executives may have been looking to duck angry and vocal retirees who have proposed several of the anti-management proxy proposals on the agenda for the May 24 annual meeting in Denver, Colorado.

The distant western location, however, did not stop the Association from waging a proxy battle that sought to restructure Bell Atlantic’s self-governed and executive compensation policies. Association President C. William Jones says, "Despite moving its annual meeting to Georgia last year, the vocal presence of retirees and unionists may have caused the directors discomfort. So this year they moved even further away."

He continued, "But rather than addressing retirees concerns head-on, the company has sought a way to avoid the Association. Should retirees and other shareowners expect to reserve hotel rooms in Chernobyl in the Ukraine for next year? At least the rooms would be cheaper." Several Association members were able to make the trip to Colorado, but the cost kept many at home. The actual proxy results are discussed in further detail in the "President’s Report."

One member shared with us a letter he sent to Chairman Ivan Seidenberg, expressing his displeasure regarding the Lump Sum Payout and the company’s treatment of pensioners, as being wholly inadequate. Excerpts of the letter follow:

Dear Mr. Seidenberg,

I hope when you and your other mishandlers of pensioners rights sit down and look at yourselves, your conscience will enable you to see the wrong you are all promulgating. I can’t imagine how this ill treatment can go on. You all purport to be so interested in Telephone Pioneering --- doing good for others. But what about us, the people who did Pioneering and still do?

Throughout my career the corporation always helped our employees to contact each other; now you cannot provide us with a pensioners directory nor will you make the addresses available to the BellTel Retiree Association. Who do you think the Pioneers are? They are all ex-telephone employees; or to make it clearer to you --- PENSIONERS.

Warren G. Schubert

Sherman, Connecticut

In response to questions raised by its own employees, GTE clarified pension protections provided for under both ERISA and the five-year employee benefit protections tied to GTE shareholder approval of the proposed GTE-Bell Atlantic merger.

According to a January 6 press announcement, GTE’s position is that ERISA protections on accrued benefits will not be limited to a five-year timeframe.  ERISA requires the company to maintain the already earned and vested pension for any employee.  Also, the company must retain pension payment distribution options on pension benefits already accrued, such as lump sum and/or annuity options.  In addition, the company cannot make early retirement eligibility criteria more stringent as it applies to any pension benefits that have already been earned.

These protections apply to all GTE qualified pension plans. This means an employee who is eligible to retire may choose to stop working for the company at any time and receive his or her pension immediately.  In most of GTE's plans, that pension may be taken as a lump sum or an annuity.  If the employee continues to work, the pension that is already earned will continue to have the pension payment options that existed when it was earned.

The pension protections that became effective upon the May 18, 1999 GTE shareholder approval of the Bell Atlantic merger further protect employees by prohibiting any change that would reduce the pension formula, early retirement eligibility or forms of payment for the five-year period ending May 17, 2004. -- This means an employee who will become eligible to retire before May 18, 2004 may stop working during OR AFTER the five year window and be assured that the pension earned through May 17, 2004 will have the same protections and be available immediately upon the employee's decision to stop working.

Thus, ERISA protects already earned benefits, and GTE's pension protections cover "future benefits" for a five-year period  (May 18, 1999 through May 17, 2004.)  The five-year merger protections are in addition to the ERISA protections.  The two protections taken together can reassure employees not to make career choices, including retirement, based on a fear of losing a pension benefit.  Just because the pension protections end at that time does not mean the plan will be changed -- it may indeed continue exactly the same or in some form be modified.  Absolutely no decision has been made regarding any pension changes and will not be made for an extended period of time due to the five-year protection period.

the Association Headquarters 516-367-3067