IPP/PENSION ENHANCEMENT AGREEMENT

An agreement has been reached with the company which vastly improves not only the Income Protection Plan (IPP) package, but the Pension package, as well as contracting protection, and job protection for the post-2003 employee in the Representative and Fiber Solution Center titles.

The details are as follows:

  • Supplemental Voluntary Termination (IPP Bonus) payment is increased from $10,000 to $50,000.
  • The 30 year cap on the IPP payouts has been raised to 40 years, with the payouts for years 30 through 40 increased accordingly. This almost doubles some of the payouts for 40 year employees.
  • The pension band increase of 3.75% scheduled for October will be made effective the last day on the payroll for4 anyone leaving with this packege.
  • The calculations for anyone taking the lump sum pension will be based on the March figure (very low interest rate/high payout) or the figure in effect when selected, whichever pays out more.
  • Waive the pension reduction for retirement before age 55, the pension penalty will no longer apply for those leaving with this offer. 
  •  Company agrees it will not increase contracting as a result of people taking this package.
  • The amount of contracting will be based on the Full Time Equivalent Employees (FTE) rather than dollars spent, so a cheaper contract will not skew the numbers.
  • The Union and the company will continue talking under Article 55 to continue to reduce surpluses. 
  • The company agreed it will not lay-off any post-2003 employees in the representative title or the Fiber Solution Center (FSC) titles before May, 2011.
  • The enhanced package will be offered to ALL employees, whether declared surplus or not. (Except Verizon Business and Video Hub)
  • ALL moulding work associated with the placement of MDU’s will be returned to the bargaining unit within 60 days.
  • The company has agreed to take back additional Central Office Equipment Installation (COEI) work.