TelCo Retirees Association, Inc.:Newsletter Vol1 Number 2 February 2005

February 14, 2005 *United Healthcare* Members’ correspondence complaining of UHC’s shortcomings, failures to reimburse medical expenses, service center employees’ failure to “call back” and UHC’s confusing medical explanations on their documents have been forwarded (with a TelCo Retirees Association, Inc. letter) to officials of SBC Health Benefits and United Healthcare. As of this date, we have been in telephone communication with both corporations and written responses are to be forthcoming. *Employment Verification Service* The President announced that some TelCo members have experienced difficulties in obtaining previous SBC employment verification service when seeking new employment. For members needing verification, the telephone number is 800-367-5690 or www.theworknumber This “ company service” has been “outsourced” and employers must pay to obtain this information. *SBC Pension Plan* A full review of the 2003 (last year available) SBC Pension Plan for Pacific Bell/Nevada Bell retirees brought forth a number of critical issues. (December 21, 1999 SBC transferred $280 million of pension assets to the Retiree Health Benefits Account. On December 20, 2000 SBC transferred approximately $228 million of pension assets to the Retiree Health Benefits Account. (The SBC documents stated, “The transfers were being made under federal law and in accordance with any applicable subsidiary bargaining agreement with the Communications Workers of America.) Also contained in the (5500) report for the year 2003 was a single page document entitled PTG Pension Plan, Number 002 Adjustments to 2003 Audited Financial Statements, which said, “During 2004 it was discovered in calendar years 2001, 2002, and 2003 lump sum and annuity benefit payments were paid from the wrong pension plan. In 2004 the error was discovered and the amount of the benefits, appreciation and investment income was transferred to the correct plan.” The TelCo Retirees Association, Inc. (on January 24, 2005) mailed a letter to the SBC Benefit Plan Administration - ERISA Compliance, stating, “Would you be kind enough to explain where these transfers of pension benefit dollars were reflected on Form 5500 for the years noted in the above paragraphs? We should also like to know from which pension plan the lump sum and annuity benefit payments were paid and whether or not these transfers in the calendar years 2001, 2002 and 2003 adversely impacted the PTG Pension Plan.” The TelCo Retirees Association, Inc. plans to forward copies of this correspondence to the Employee Retirement Income Security Agency (ERISA) Compliance Division, (a United States Government agency) at the end of this month if we have not received a formal reply from SBC. Medicare Part B Reimbursement The President announced that SBC made some significant changes to the Medicare Part B reimbursement coverage for retirees. Former PTG managers who retired on or after January 1, 1999 have a Medicare Part B benefit reimbursement capped at $45.00 a month for the retiree only - no Class 1 dependent reimbursement available (spouse). Former PTG managers who retired between January 2, 1991 and December 31, 1998 would be eligible for a $45.00 a month Medicare Part B reimbursement for the reitiree and their Class 1 dependent (spouse). Former PTG managers who retired prior to January 2, 1991 receive the full Medicare Part B reimbursement ($78.50) for the retiree and their Class 1 dependent (spouse). (This was another cost savings initiative that was put in place beginning in 1999 and continued as SBC merged with other regional companies.) *Telephone Concession Service* The TelCo Retirees Association, Inc. filed a formal complaint with the CPUC on August 17, 2004 stating that SBC was in violation of California PUC Schedule A5 (filed November 20, 1998) and approved by the California Commission on January 1, 1999. (Tariff CPUC A5 states, “To be eligible for concession, all recipients must select Pacific Bell as their telephone service provider whenever there is a choice. Class “R” concession applies to all employees retired between January 1, 1984 and December 31, 1998 and had a Class A, B or C concession immediately before retirement. Class “J” concession applies to employees who retired on or after January 1, 1999 and either had a Class B or Class C concession immediately before retirement or were management employees at District level or above and were receiving cash payment in lieu of a Class A concession. All recipients (except retirees with a Class P or R) must allow publication of their telephone number. The CPUC has a period of 12 months from the complaint filing date to schedule and hold a formal hearing. We have written the President of the CPUC asking for a status report on our formal complaint. As of this writing, we have not yet received a response. *Dates of Divestiture* A. Pacific Telesis Group “Effective April 1, 1997, PTG became a wholly owned subsidiary of SBC.” B. Southern New England Telephone “Effective October 26, 1998, SNET became a wholly owned subsidiary of SBC.” C. Ameritech “Effective October 8, 1999, Ameritech became a wholly owned subsidiary of SBC.” *Pacific Telesis Group Pension Plan* PTG pension plan funding (effective date of plan - 1984) reported the following net assets available for benefits, end of year. 2000 - $7,125,916,000.00 2001 - $6,131,812,000.00 2002 - $4,160,140,000.00 2003 - $4,850,744,000.00 (Total income $1,339,274,000.00 - Total benefit payments $477,535,000.00 - Total administrative expenses $15,616,000,00 - Total expenses $493,151,000.00 - Net income $846,123,000.00.) Respectfully submitted, Muriel Wick, Secretary Date: February 14, 2005 Click here for MS Word version of this Newsletter. Reminder to Members: Please notify us at Info@TelCoRetirees.org if you change your e-mail address so that you will continue to receive messages from our office.
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February 14, 2005

United Healthcare

Members’ correspondence complaining of UHC’s shortcomings, failures to reimburse medical expenses, service center employees’ failure to “call back” and UHC’s confusing medical explanations on their documents have been forwarded (with a TelCo Retirees Association, Inc. letter) to officials of SBC Health Benefits and United Healthcare. As of this date, we have been in telephone communication with both corporations and written responses are to be forthcoming.

Employment Verification Service

The President announced that some TelCo members have experienced difficulties in obtaining previous SBC employment verification service when seeking new employment. For members needing verification, the telephone number is 800-367-5690 or www.theworknumber This “ company service” has been “outsourced” and employers must pay to obtain this information.

SBC Pension Plan

A full review of the 2003 (last year available) SBC Pension Plan for Pacific Bell/Nevada Bell retirees brought forth a number of critical issues. (December 21, 1999 SBC transferred $280 million of pension assets to the Retiree Health Benefits Account. On December 20, 2000 SBC transferred approximately $228 million of pension assets to the Retiree Health Benefits Account. (The SBC documents stated, “The transfers were being made under federal law and in accordance with any applicable subsidiary bargaining agreement with the Communications Workers of America.)

Also contained in the (5500) report for the year 2003 was a single page document entitled PTG Pension Plan, Number 002 Adjustments to 2003 Audited Financial Statements, which said, “During 2004 it was discovered in calendar years 2001, 2002, and 2003 lump sum and annuity benefit payments were paid from the wrong pension plan. In 2004 the error was discovered and the amount of the benefits, appreciation and investment income was transferred to the correct plan.”

The TelCo Retirees Association, Inc. (on January 24, 2005) mailed a letter to the SBC Benefit Plan Administration - ERISA Compliance, stating, “Would you be kind enough to explain where these transfers of pension benefit dollars were reflected on Form 5500 for the years noted in the above paragraphs? We should also like to know from which pension plan the lump sum and annuity benefit payments were paid and whether or not these transfers in the calendar years 2001, 2002 and 2003 adversely impacted the PTG Pension Plan.”

The TelCo Retirees Association, Inc. plans to forward copies of this correspondence to the Employee Retirement Income Security Agency (ERISA) Compliance Division, (a United States Government agency) at the end of this month if we have not received a formal reply from SBC.

Medicare Part B Reimbursement

The President announced that SBC made some significant changes to the Medicare Part B reimbursement coverage for retirees.

Former PTG managers who retired on or after January 1, 1999 have a Medicare Part B benefit reimbursement capped at $45.00 a month for the retiree only - no Class 1 dependent reimbursement available (spouse).

Former PTG managers who retired between January 2, 1991 and December 31, 1998 would be eligible for a $45.00 a month Medicare Part B reimbursement for the reitiree and their Class 1 dependent (spouse).

Former PTG managers who retired prior to January 2, 1991 receive the full Medicare Part B reimbursement ($78.50) for the retiree and their Class 1 dependent (spouse).

(This was another cost savings initiative that was put in place beginning in 1999 and continued as SBC merged with other regional companies.)

Telephone Concession Service

The TelCo Retirees Association, Inc. filed a formal complaint with the CPUC on August 17, 2004 stating that SBC was in violation of California PUC Schedule A5 (filed November 20, 1998) and approved by the California Commission on January 1, 1999.

(Tariff CPUC A5 states, “To be eligible for concession, all recipients must select Pacific Bell as their telephone service provider whenever there is a choice.

Class “R” concession applies to all employees retired between January 1, 1984 and December 31, 1998 and had a Class A, B or C concession immediately before retirement.

Class “J” concession applies to employees who retired on or after January 1, 1999 and either had a Class B or Class C concession immediately before retirement or were management employees at District level or above and were receiving cash payment in lieu of a Class A concession.

All recipients (except retirees with a Class P or R) must allow publication of their telephone number.

The CPUC has a period of 12 months from the complaint filing date to schedule and hold a formal hearing. We have written the President of the CPUC asking for a status report on our formal complaint. As of this writing, we have not yet received a response.

Dates of Divestiture

A. Pacific Telesis Group “Effective April 1, 1997, PTG became a wholly owned subsidiary of SBC.”

B. Southern New England Telephone “Effective October 26, 1998, SNET became a wholly owned subsidiary of SBC.”

C. Ameritech “Effective October 8, 1999, Ameritech became a wholly owned subsidiary of SBC.”

Pacific Telesis Group Pension Plan

PTG pension plan funding (effective date of plan - 1984) reported the following net assets available for benefits, end of year.

2000 - $7,125,916,000.00

2001 - $6,131,812,000.00

2002 - $4,160,140,000.00

2003 - $4,850,744,000.00 (Total income $1,339,274,000.00 - Total benefit payments $477,535,000.00 - Total administrative expenses $15,616,000,00 - Total expenses $493,151,000.00 - Net income $846,123,000.00.)

Respectfully submitted,

Muriel Wick, Secretary Date: February 14, 2005

Click here for MS Word version of this Newsletter.

Reminder to Members: Please notify us at Info@TelCoRetirees.org if you change your e-mail address so that you will continue to receive messages from our office.