What Is the Standard Retirement Plan for Verizon Employees?
Verizon employees participate in pension and savings plans as a resource for retirement. The latter is a 401(k) retirement savings plan managed by Fidelity Investments as of 2015.
The Verizon pension plan varies greatly by type of employee. For the International Brotherhood of Electrical Workers local 2222, for example, pension benefits are negotiated with the company on a regular basis. A 2007 document on the union local website describes “pension band numbers” between 101 and 135. Each band is a pension earning level depending on rank in Verizon. Higher bands earn a greater amount than lower bands, with the top tier earning more than twice that of the lowest tier. Monthly pension amounts are calculated by multiplying the pension band amount by the years of service.
Verizon bought out Vodafone’s stake in the Verizon Wireless brand in 2013 in an effort to increase revenue. At that time, the company had more pensioners to pay out to than employees, according to Crain’s New York Business. Crain’s also notes that the telecommunications corporation had $27 billion in pension obligations but only $18 billion in assets.
Verizon was forced to switch its pension plan to a third-party insurance company annuity in 2014, according to AARP The Magazine. The move was done to relieve the company of the financial burden of pension obligations. The monthly payments to pensioners would not change under the annuity, but they would change sources.