NEW YORK (AP) — Verizon retirees have sued the phone company because it's planning to transfer the responsibility of paying their pensions to an insurance company, where they will have weaker legal protection.
Verizon Communications Inc. said last month that it would transfer $7.5 billion of its pension obligations, covering 41,000 management retirees, to Prudential Insurance. The deal effectively turns the company's defined-benefit pensions into annuities.
Members of the Association of BellTel Retirees sued in federal court in Dallas on Tuesday. They're seeking a court order to halt the deal, which is set to close in December.
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