Ironically if Verizon hadn't frozen managements pensions in 2006 many of the older higher paid employees that they want to get off the payroll now would have had enough money years ago too retire and would no longer be on the payroll.
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Yes. They used the pension returns to cover severance and created the underfunding. Took from employees with a commitment to the company and boxed in a huge group of managers who then had to wait for their points to get something of what they were planning on when they started working for vz, rather than leave with almost nothing. A very devastating decision by the vz board and tobin for those effected. The consultants rippled such employee abusive tactics through many of our large corporations, of which VZ was one of the main ring leaders.
Iv’e always wondered what changed amoung our corporate elite in the late 90’s that enabled them to basically care less about their workforce and communities in such a significant way.
That was outright theft by Doreen Tobin, then CFO, to cover the underfunded NYNEX pension problem. 401K's were established to 'compliment' pensions, not in place of pensions.
Hopefully they are still working since on the payroll. Bigger pension wasn't sustainable. So... 401k makes more logic.
The logic checks out