Summary Annual Reports and Legal Notices. For Verizon Communications Inc. Benefit Plans

Transcription

1 Summary Annual Reports and Legal Notices For Verizon Communications Inc. Benefit Plans

2 One Verizon Way Basking Ridge, NJ Mailcode: VC34E253 December 2010 Dear Benefit Plan Participant or Beneficiary: Each year, the company makes Summary Annual Reports and other important notices available to you as required by federal law. Enclosed please find your 2009 Summary Annual Reports, as well as the following important legal notices: Notice of Right to Request a Savings Plan Benefit Statement; Your rights under the Women s Health and Cancer Rights Act; Information about your privacy rights under the Health Insurance Portability and Accountability Act (HIPAA); Information regarding eligibility for premium assistance under Medicaid or the Children s Health Insurance Program; and Additional changes to Mental Health Plan Designs under The Paul Wellstone and Pete Domenici Mental Health Parity and Addiction Equity Act of 2008 ( MHP Act ). The Summary Annual Reports are summaries of the IRS Form 5500 filed by Verizon Communications Inc. with respect to your employee benefit plans. They contain basic financial information about your benefit plans that were maintained by Verizon for the 2009 plan year and address important issues such as growth in the savings plan assets and the financial status of health plans and insurance plans. Please note that 2009 summary annual report information for pension plans was provided in the Annual Funding Notice provided to pension plan participants in April 2010, in conformance with provisions of the Pension Protection Act of If you would like to obtain additional information after reading the reports, please follow the instructions under the caption on the Summary Annual Report for each plan. Thank you. Marlissa Porreca Director Benefits Administration 2

3 IMPORTANT LEGAL NOTICES REGARDING YOUR EMPLOYEE BENEFIT PLANS Notice of Right to Request a Savings Plan Benefit Statement: You may request and receive, free of charge, an estimate of the amount of your savings plan benefit if you have not already taken a full distribution. To request an online benefit estimate, access the Fidelity NetBenefits website at To request a written benefit estimate from the Verizon Savings Plan Service Center or to get assistance with obtaining an estimate online, call Verizon Savings Plan Service Center representatives are available from 8 a.m. until 6 p.m., Eastern Time, Monday through Friday, on days the New York Stock Exchange is open. Your Rights Following a Mastectomy (Women s Health and Cancer Rights Act Notice): The Verizon Medical Plans provide benefits for mastectomy-related services, including all stages of reconstruction and surgery to achieve symmetry between the breasts, prostheses, and treatment of physical complications resulting from a mastectomy (including lymphedema). These benefits also comply with the Women s Health and Cancer Rights Act of For more information, you may call your health plan. You can find your health plan contact information on either Your Benefits Resources website at or on your medical plan identification card. You may also call the Verizon Benefits Center at VzBens to obtain your health plan contact information. Your Benefits Resources is a trademark of Hewitt Associates LLC. HIPAA Information Notice of Privacy Practices Reminder: The Notice of Privacy Practices for the Verizon Health Plans contains a complete explanation of your rights under the HIPAA Privacy Rule. The notice can be found on Your Benefits Resources website. You may view the notice on the website and/or print a paper copy from the website, or you also may request a paper copy of the notice by calling the Verizon Benefits Center at VzBens. 3

4 Medicaid and the Children s Health Insurance Program (CHIP) Offers Free or Low-Cost Health Coverage to Children and Families If you are eligible for health coverage from Verizon, but are unable to afford the premiums, some states have premium assistance programs that can help pay for coverage. These states use funds from their Medicaid or CHIP programs to help people who are eligible for employer-sponsored health coverage, but need assistance in paying their health premiums. If you or your dependents are already enrolled in Medicaid or CHIP and you live in a state listed on pages 5 8, you can contact your state Medicaid or CHIP office to find out if premium assistance is available. If you or your dependents are not currently enrolled in Medicaid or CHIP, and you think you or any of your dependents might be eligible for either of these programs, you can contact your state Medicaid or CHIP office, dial KIDS NOW ( ) or log on to to find out how to apply. If you qualify, you can ask the state if it has a program that might help you pay the premiums for an employer-sponsored plan. Once it is determined that you or your dependents are eligible for premium assistance under Medicaid or CHIP, your employer s health plan is required to permit you and your dependents to enroll in the plan as long as you and your dependents are eligible, but not already enrolled in the employer s plan. This is called a special enrollment opportunity, and you must request coverage within 60 days of being determined eligible for premium assistance. 4

5 If you live in one of the following states, you may be eligible for assistance paying your employer health plan premiums. The following list of states is current as of November 3, You should contact your state for further information on eligibility. ALABAMA Medicaid Website: Phone: ALASKA Medicaid Website: /programs/medicaid/ Phone (outside of Anchorage): Phone (Anchorage): ARIZONA CHIP Website: /applicants/default.aspx Phone: or ARKANSAS CHIP Website: Phone: GEORGIA Medicaid Website: Click on Programs, then Medicaid Phone: CALIFORNIA Medicaid Website: /Pages/TPLRD_CAU_cont.aspx Phone: COLORADO Medicaid and CHIP Medicaid Website: Medicaid Phone: CHIP Website: CHIP Phone: FLORIDA Medicaid Website: /Medicaid/index.shtml Phone: MONTANA Medicaid Website: /clientpages/clientindex.shtml Phone:

6 IDAHO Medicaid and CHIP Medicaid Website: Medicaid Phone: NEBRASKA Medicaid Website: /medindex.htm Phone: CHIP Website: CHIP Phone: INDIANA Medicaid Website: Phone: IOWA Medicaid NEVADA Medicaid and CHIP Medicaid Website: Medicaid Phone: CHIP Phone: Website: Phone: KANSAS Medicaid Website: Phone: KENTUCKY Medicaid Website: Phone: LOUISIANA Medicaid Website: Phone: NEW HAMPSHIRE Medicaid Website: Phone: NEW JERSEY Medicaid and CHIP Medicaid Website: /dmahs/clients/medicaid/ Medicaid Phone: CHIP Website: CHIP Phone:

7 MAINE Medicaid Website: Phone: MASSACHUSETTS Medicaid and CHIP Medicaid and CHIP Website: Medicaid and CHIP Phone: MINNESOTA Medicaid Website: Click on Health Care, then Medical Assistance Phone (outside of Twin Cities area): NEW MEXICO Medicaid and CHIP Medicaid Website: Medicaid Phone: CHIP Website: Click on Insure New Mexico CHIP Phone: NEW YORK Medicaid Website: /medicaid/ Phone: Phone (Twin Cities area): MISSOURI Medicaid Website: /index.htm Phone: NORTH DAKOTA Medicaid Website: /medicalserv/medicaid/ Phone: OKLAHOMA Medicaid Website: Phone: NORTH CAROLINA Medicaid Website: Phone: UTAH Medicaid Website: Phone: VERMONT Medicaid Website: Phone:

8 OREGON Medicaid and CHIP Medicaid and CHIP Website: Medicaid and CHIP Phone: VIRGINIA Medicaid and CHIP Medicaid Website: Medicaid Phone: CHIP Website: CHIP Phone: PENNSYLVANIA Medicaid WASHINGTON Medicaid Website: Phone: Website: Phone: ext RHODE ISLAND Medicaid Website: Phone: SOUTH CAROLINA Medicaid Website: Phone: TEXAS Medicaid Website: Phone: WEST VIRGINIA Medicaid Website: Phone: WISCONSIN Medicaid Website: /publications/p htm Phone: WYOMING Medicaid Website: /index.html Phone:

9 To see if any more states have added a premium assistance program since November 3, 2010, or for more information on special enrollment rights, you can contact either of the following: U.S. Department of Labor Employee Benefits Security Administration EBSA (3272) U.S. Department of Health and Human Services Centers for Medicare & Medicaid Services , Ext Change to Mental Health Plan Designs under the Paul Wellstone and Pete Domenici Mental Health Parity and Addiction Equity Act of 2008 ( MHP Act ) Under the MHP Act, some Verizon group health plan designs were modified in 2009 for the 2010 plan year to ensure that the financial requirements and treatment limits for mental health and substance use disorder benefits were no more restrictive than the financial requirements and treatment limits applied to substantially all medical/surgical benefits. The MHP Act has varying effective dates but many of the Verizon health plans had to be reviewed and updated as of January 1, The Department of Labor recently issued regulations that, in a few instances, required additional changes to your mental health/substance use disorder benefits for the 2011 plan year. For details about the medical plans, including mental health benefits available to you, view your health plan comparison charts at If you would like a paper copy of your schedule of benefits, including mental health, please contact the Verizon Benefits Center. This information will be provided to you free of charge, upon request. 9

10 FOR VERIZON SAVINGS PLAN FOR MANAGEMENT EMPLOYEES This is a summary of the annual report for Verizon Savings Plan for Management Employees, EIN , Plan No. 102, for period January 01, 2009 through December 31, The annual report has been filed with the Employee Benefits Security Administration, U.S. Department of Labor, as required under the Employee Retirement Income Security Act of 1974 (ERISA). Basic Financial Statement Benefits under the plan are provided by a trust fund. Plan expenses were $866,469,863. These expenses included $14,400,660 in administrative expenses, $831,824,397 in benefits paid to participants and beneficiaries, and $20,244,806 in other expenses. A total of 112,548 persons were participants in or beneficiaries of the plan at the end of the plan year, although not all of these persons had yet earned the right to receive benefits. The value of plan assets, after subtracting liabilities of the plan, was $10,064,085,733 as of December 31, 2009, compared to $6,678,614,633 as of January 1, During the plan year the plan experienced an increase in its net assets of $3,385,471,100. This increase includes unrealized appreciation and depreciation in the value of plan assets; that is, the difference between the value of the plan's assets at the end of the year and the value of the assets at the beginning of the year or the cost of assets acquired during the year. The plan had total income of $1,531,267,647, including employer contributions of $225,932,357, employee contributions of $299,839,378, earnings from investments of $968,533,198 and other income of $36,962,714. Transfers from other plans were $2,722,406,763 (which includes assets merged into the plan from the Verizon Business Savings Plan, below) and transfers to other plans were $1,733,447. be $.70 for the full annual report for this plan or $.05 per page for any part an accountant's report; financial information; information on payments to service providers; 10

11 information regarding any common or collective trusts, pooled separate accounts, master trusts or investment entities in which the plan participates. FOR VERIZON SAVINGS & SECURITY PLAN FOR NEW YORK AND NEW ENGLAND ASSOCIATES This is a summary of the annual report for Verizon Savings & Security Plan for New York and New England Associates, EIN , Plan No. 011, for period January 1, 2009 through December 31, The annual report has been filed with the Employee Benefits Security Administration, U.S. Department of Labor, as required under the Employee Retirement Income Security Act of 1974 (ERISA). Basic Financial Statement Benefits under the plan are provided by a trust fund. Plan expenses were $233,144,130. These expenses included $2,014,649 in administrative expenses, $230,591,159 in benefits paid to participants and beneficiaries, and $538,322 in other expenses. A total of 38,442 persons were participants in or beneficiaries of the plan at the end of the plan year, although not all of these persons had yet earned the right to receive benefits. The value of plan assets, after subtracting liabilities of the plan, was $3,568,993,816 as of December 31, 2009, compared to $3,192,082,988 as of January 1, During the plan year the plan experienced an increase in its net assets of $376,910,828. This increase includes unrealized appreciation and depreciation in the value of plan assets; that is, the difference between the value of the plan's assets at the end of the year and the value of the assets at the beginning of the year or the cost of assets acquired during the year. The plan had total income of $610,683,577, including employer contributions of $81,901,321, employee contributions of $168,236,661, earnings from investments of $339,770,730 and other income of $20,774,865. Transfers from other plans were $494,783 and transfers to other plans were $1,123,402. be $.65 for the full annual report for this plan or $.05 per page for any part an accountant's report; financial information; 11

12 information on payments to service providers; information regarding any common or collective trusts, pooled separate accounts, master trusts or investment entities in which the plan participates. FOR VERIZON SAVINGS AND SECURITY PLAN FOR WEST HOURLY EMPLOYEES This is a summary of the annual report for Verizon Savings and Security Plan for West Hourly Employees, EIN , Plan No. 105, for period January 1, 2009 through December 31, The annual report has been filed with the Employee Benefits Security Administration, U.S. Department of Labor, as required under the Employee Retirement Income Security Act of 1974 (ERISA). Basic Financial Statement Benefits under the plan are provided by a trust fund. Plan expenses were $212,108,926. These expenses included $2,351,268 in administrative expenses, $209,409,309 in benefits paid to participants and beneficiaries, and $348,349 in other expenses. A total of 30,030 persons were participants in or beneficiaries of the plan at the end of the plan year, although not all of these persons had yet earned the right to receive benefits. The value of plan assets, after subtracting liabilities of the plan, was $1,345,627,680 as of December 31, 2009, compared to $1,281,548,269 as of January 1, During the plan year the plan experienced an increase in its net assets of $64,079,411. This increase includes unrealized appreciation and depreciation in the value of plan assets; that is, the difference between the value of the plan's assets at the end of the year and the value of the assets at the beginning of the year or the cost of assets acquired during the year. The plan had total income of $276,709,401, including employer contributions of $37,835,445, employee contributions of $72,569,981, earnings from investments of $161,483,264, and other income of $4,820,711. Transfers from other plans were $337,611 and transfers to other plans were $858,675. be $.70 for the full annual report for this plan or $.05 per page for any part an accountant's report; 12

13 financial information; information on payments to service providers; information regarding any common or collective trusts, pooled separate accounts, master trusts or investment entities in which the plan participates. FOR VERIZON SAVINGS SECURITY PLAN FOR MID-ATLANTIC ASSOCIATES This is a summary of the annual report for Verizon Savings Security Plan for Mid-Atlantic Associates, EIN , Plan No. 004, for period January 1, 2009 through December 31, The annual report has been filed with the Employee Benefits Security Administration, U.S. Department of Labor, as required under the Employee Retirement Income Security Act of 1974 (ERISA). Basic Financial Statement Benefits under the plan are provided by a trust fund. Plan expenses were $186,441,845. These expenses included $2,235,780 in administrative expenses, $184,160,810 in benefits paid to participants and beneficiaries, and $45,255 in other expenses. A total of 38,323 persons were participants in or beneficiaries of the plan at the end of the plan year, although not all of these persons had yet earned the right to receive benefits. The value of plan assets, after subtracting liabilities of the plan, was $2,116,092,962 as of December 31, 2009, compared to $1,904,613,124 as of January 1, During the plan year the plan experienced an increase in its net assets of $211,479,838. This increase includes unrealized appreciation and depreciation in the value of plan assets; that is, the difference between the value of the plan's assets at the end of the year and the value of the assets at the beginning of the year or the cost of assets acquired during the year. The plan had total income of $396,650,749, including employer contributions of $69,096,072, employee contributions of $122,404,375, earnings from investments of $196,647,509, and other income of $8,502,793. Transfers from other plans were $1,435,078 and transfers to other plans were $164,144. be $.60 for the full annual report for this plan or $.05 per page for any part 13

14 an accountant's report; financial information; information on payments to service providers; information regarding any common or collective trusts, pooled separate accounts, master trusts or investment entities in which the plan participates. FOR VERIZON BUSINESS SAVINGS PLAN This is a summary of the annual report for Verizon Business Savings Plan, EIN , Plan No. 001, for period January 1, 2009 through December 18, Effective December 18, 2009, the Verizon Business Savings Plan was merged into the Verizon Savings Plan for Management Employees. The annual report has been filed with the Employee Benefits Security Administration, U.S. Department of Labor, as required under the Employee Retirement Income Security Act of 1974 (ERISA). Basic Financial Statement Benefits under the plan are provided by a trust fund. Plan expenses were $175,879,711. These expenses included $8,280,125 in administrative expenses and $167,599,586 in benefits paid to participants and beneficiaries. Net transfers to other plans were $2,722,406,763. A total of 0 persons were participants in or beneficiaries of the plan at the end of the plan year. The value of plan assets, after subtracting liabilities of the plan, was $0 as of December 31, 2009, compared to $2,209,669,894 as of January 1, During the plan year the plan experienced a decrease in its net assets of $2,209,669,894. This decrease includes unrealized appreciation and depreciation in the value of plan assets; that is, the difference between the value of the plan's assets at the end of the year and the value of the assets at the beginning of the year or the cost of assets acquired during the year. The plan had total income of $688,616,580, including employer contributions of $129,486,163, employee contributions of $159,425,255, earnings from investments of $420,834,242, and other income of $(21,129,080). be $.70 for the full annual report for this plan or $.05 per page for any part 14

15 an accountant's report; financial information; information on payments to service providers; information regarding any common or collective trusts, pooled separate accounts, master trusts or investment entities in which the plan participates. FOR IMPACT TELECOMMUNICATIONS, INC 401K PLAN This is a summary of the annual report for Impact Telecommunications, Inc 401K Plan, EIN , Plan No. 004, for period January 1, 2009 through December 31, The annual report has been filed with the Employee Benefits Security Administration, U.S. Department of Labor, as required under the Employee Retirement Income Security Act of 1974 (ERISA). Basic Financial Statement Benefits under the plan are provided by a trust fund. A total of 2 persons were participants in or beneficiaries of the plan at the end of the plan year. The value of plan assets, after subtracting liabilities of the plan, was $6,159 as of December 31, 2009, compared to $4,971 as of January 1, During the plan year the plan experienced an increase in its net assets of $1,188. This increase includes unrealized appreciation and depreciation in the value of plan assets; that is, the difference between the value of the plan's assets at the end of the year and the value of the assets at the beginning of the year or the cost of assets acquired during the year. The plan had total income of $1,188, including earnings from investments of $1,188. financial information. For NETSEC 401(K) RETIREMENT PLAN This is a summary of the annual report for NETSEC 401(K) RETIREMENT PLAN, EIN , Plan No. 007, for period January 1, 2009 through December 31, The annual report has been filed with the Employee Benefits Security Administration, U.S. Department of Labor, as 15

16 required under the Employee Retirement Income Security Act of 1974 (ERISA). Basic Financial Statement Benefits under the plan are provided by a trust fund. A total of 4 persons were participants in or beneficiaries of the plan at the end of the plan year. The value of plan assets, after subtracting liabilities of the plan, was $23,203 as of December 31, 2009, compared to $23,131 as of January 1, During the plan year the plan experienced an increase in its net assets of $72. This increase includes unrealized appreciation and depreciation in the value of plan assets; that is, the difference between the value of the plan's assets at the end of the year and the value of the assets at the beginning of the year or the cost of assets acquired during the year. The plan had total income of $72, including earnings from investments of $72. be $.70 for the full annual report for this plan or $.05 per page for any part financial information. FOR VERIZON GROUP LIFE INSURANCE PLAN FOR NEW YORK AND NEW ENGLAND ASSOCIATES This is a summary of the annual report of the Verizon Group Life Insurance Plan for New York and New England Associates, EIN , Plan No. 501, for period January 1, 2009 through December 31, The annual report has been filed with the Employee Benefits Security Administration, U.S. Department of Labor, as required under the Employee Retirement Income Security Act of 1974 (ERISA). Insurance Information The plan has contracts with Metropolitan Life Insurance Company to pay life insurance and accidental death and dismemberment claims incurred under the terms of the plan. The total premiums paid for the plan year ending December 31, 2009 were $39,032,482. Because they are so-called experience-rated" contracts, the premium costs are affected by, among other things, the number and size of claims. Of the total insurance premiums paid for the plan year ending December 31, 2009, 16

17 the premiums paid under such "experience-rated" contracts were $39,032,482 and the total of all benefit claims paid under these contracts during the plan year was $39,661,720. Basic Financial Statement The value of plan assets, after subtracting liabilities of the plan, was $155,236,963 as of December 31, 2009, compared to $169,865,271 as of January 1, During the plan year the plan experienced a decrease in its net assets of $14,628,308. This decrease includes unrealized appreciation and depreciation in the value of plan assets; that is, the difference between the value of the plan's assets at the end of the year and the value of the assets at the beginning of the year or the cost of assets acquired during the year. During the plan year, the plan had total income of $73,627,897, including employer contributions of $28,532,433, employee contributions of $10,500,049, earnings from investments of $1,704,496, and other income of $32,890,919. Plan expenses were $75,501,232. These expenses included $2,590,087 in administrative expenses and $72,911,145 in benefits paid to participants and beneficiaries. Transfers to other plans were $12,754,973. be $.95 for the full annual report for this plan or $.05 per page for any part an accountant's report; financial information; information on payments to service providers; assets held for investment; transactions in excess of 5% of the plan assets; insurance information, including sales commissions paid by insurance carriers. FOR VERIZON DENTAL EXPENSE PLAN FOR NY & NE ASSOCIATES This is a summary of the annual report of the Verizon Dental Expense Plan for NY & NE Associates, EIN , Plan No. 505, for period January 1, 2009 through December 31, The annual report has been filed with the Employee Benefits Security Administration, U.S. Department of Labor, as required under the Employee Retirement Income Security Act of 1974 (ERISA). 17

18 Insurance Information The plan has contracts with MetLife Dental Expense Plan and 350 Indemnity to pay dental claims incurred under the terms of the plan. The total premiums paid for the plan year ending December 31, 2009 were $1,176,731. Basic Financial Statement The value of plan assets, after subtracting liabilities of the plan, was $(1,428,000) as of December 31, 2009, compared to $6,293,770 as of January 1, During the plan year the plan experienced a decrease in its net assets of $7,721,770. This decrease includes unrealized appreciation and depreciation in the value of plan assets; that is, the difference between the value of the plan's assets at the end of the year and the value of the assets at the beginning of the year or the cost of assets acquired during the year. During the plan year, the plan had total income of $40,932,677, including employer contributions of $40,687,751, employee contributions of $237,549, and earnings from investments of $7,377. Transfers from other plans were $24. Plan expenses were $48,654,471. These expenses included $2,758 in administrative expenses, and $48,651,713 in benefits paid to participants and beneficiaries. be $.35 for the full annual report for this plan or $.05 per page for any part an accountant's report; financial information; transactions in excess of 5% of the plan assets; insurance information, including sales commissions paid by insurance carriers; information regarding any common or collective trusts, pooled separate accounts, master trusts or investment entities in which the plan participates. FOR VERIZON SPECIAL ACCIDENT DEATH POLICY FOR MID-ATLANTIC ASSOCIATES This is a summary of the annual report of the Verizon Special Accident Death Policy for Mid- Atlantic Associates, EIN , Plan No. 514, for 18

19 period January 1, 2009 through December 31, The annual report has been filed with the Employee Benefits Security Administration, U.S. Department of Labor, as required under the Employee Retirement Income Security Act of 1974 (ERISA). Insurance Information The plan has a contract with Zurich American Insurance Group to pay Accident Death & Dismemberment claims incurred under the terms of the plan. The total premiums paid for the plan year ending December 31, 2009 were $155,537. be $.35 for the full annual report for this plan or $.05 per page for any part financial information; insurance information, including sales commissions paid by insurance carriers. FOR VERIZON SPECIAL ACCIDENTAL DEATH POLICY FOR NEW YORK & NEW ENGLAND ASSOCIATES This is a summary of the annual report of the Verizon Special Accidental Death Policy for New York & New England Associates, EIN , Plan No. 557, for period January 1, 2009 through December 31, The annual report has been filed with the Employee Benefits Security Administration, U.S. Department of Labor, as required under the Employee Retirement Income Security Act of 1974 (ERISA). Insurance Information The plan has a contract with Zurich American Insurance Company to pay travel accident disability claims incurred under the terms of the plan. The total premiums paid for the plan year ending December 31, 2009 were $162,901. be $.70 for the full annual report for this plan or $.05 per page for any part 19

20 insurance information, including sales commissions paid by insurance carriers. FOR THE GTE LONG-TERM CARE PLAN This is a summary of the annual report of the The GTE Long-Term Care Plan, EIN , Plan No. 532, for period January 1, 2009 through December 31, The annual report has been filed with the Employee Benefits Security Administration, U.S. Department of Labor, as required under the Employee Retirement Income Security Act of 1974 (ERISA). Insurance Information The plan has contracts with Metropolitan Life Insurance Company to pay long-term care insurance and long-term care claims incurred under the terms of the plan. The total premiums paid for the plan year ending December 31, 2009 were $7,009,576. Because they are so-called "experience-rated" contracts, the premium costs are affected by, among other things, the number and size of claims. Of the total insurance premiums paid for the plan year ending December 31, 2009, the premiums paid under such "experience-rated" contracts were $7,009,576 and the total of all benefit claims paid under these contracts during the plan year was $16,190,518. be $.35 for the full annual report for this plan or $.05 per page for any part insurance information, including sales commissions paid by insurance carriers. FOR VERIZON BELL ATLANTIC LONG-TERM CARE INSURANCE NEW YORK AND NEW ENGLAND ASSOCIATES This is a summary of the annual report of the Verizon Bell Atlantic Long-Term Care Insurance Plan for New York and New England Associates, EIN , Plan No. 538, for period January 1, 2009 through December 31, The annual report has been filed with the Employee Benefits Security 20

21 Administration, U.S. Department of Labor, as required under the Employee Retirement Income Security Act of 1974 (ERISA). Insurance Information The plan has contracts with Mutual of Omaha Insurance Co. and John Hancock Mutual Life Insurance Company to pay Long-Term Care insurance and Long-Term Care claims incurred under the terms of the plan. The total premiums paid for the plan year ending December 31, 2009 were $5,515,649. Because they are so called "experience-rated" contracts, the premium costs are affected by, among other things, the number and size of claims. Of the total insurance premiums paid for the plan year ending December 31, 2009, the premiums paid under such "experience-rated" contracts were $0 and the total of all benefit claims paid under these contracts during the plan year was $2,533,727. be $.70 for the full annual report for this plan or $.05 per page for any part insurance information, including sales commissions paid by insurance carriers. FOR VERIZON PLAN 550 This is a summary of the annual report of the Verizon Plan 550, EIN , Plan No. 550, for period January 1, 2009 through December 31, The annual report has been filed with the Employee Benefits Security Administration, U.S. Department of Labor, as required under the Employee Retirement Income Security Act of 1974 (ERISA). Insurance Information The plan has contracts with Keystone East PA, NJ DE, Security Blue Medicare PA CWA, Optima Health Plan VA, Optima Health Plan DC MD, Healthamerica Advantra Pitts, Aetna Medicare Advantage Metro NJ, Humana Group Medicare Tampa, Kaiser North California, Kaiser South California, Keystone Health Plan West PA, UHC Secure Horizons TX, Tufts Medicare Preferred MA, Horizon Blue Cross Blue Shield Of NJ, Aetna Medicare Advantage Phil, Blue Choice HMO DC, MD, Carelink Health Plan WV, Blue Cross Blue Care FL, Geisinger Healthplan Gold PA, Healthnet NJ, 21

22 Kaiser Medicare Plus DC, MD, VA, Kaiser Permanente DC, MD, VA, MVP Health Plan Selectcare, Horizon BCBS NJ CWA, Cigna Healthcare WV, Security Blue Medicare PA, Anthem Healthkeepers VA, Blue Preferred Primary Midwest, Kaiser Northwest Oregon, Healthnet HMO CA, Amerihealth HMO NJ, Kaiser Senior Advantage North CA, Kaiser Senior Advantage South CA, UHC Secure Horizons CA, Health Net Seniority Plus CA, Blue Care HMO NE PA, Capital District Physicians Health, Cigna Healthcare NH Me, Fallon Community Health MA, UHC Passport Harvard Pilgrim, Hip Health Plan Of NY, HMO Blue MA, MVP Selectcare NY, VT, Geisinger Health Plan Pa, Health Net NY Ct, Healthamerica PA/ WPA, Tufts Health Plan Ma, Univera Healthcare NY, Aetna Medicare Advantage NY, Preferred Dentist Plan Metlife PDP, Preferred Dental Plan Metlife, Standard Option Aetna, Aetna Inc DMO, Empire BCBS of NY, Medicare HMO Blue, Healthamerica PA East Central, Dental Plan Option 4 Aetna, Aetna Standard Dental Ex, Metlife PDP, Prudential Insurance Company Of America, Independent Health Of Buffalo, Humana Group Medicare Fl, Empire Blue Choice Senior Plan, HIP Health Plan of NY, UHC Secure Horizons, Aetna Inc MCHP, Kaiser Permanente Hawaii, Aetna Inc HMO, United Healthcare EPO, Keystone 65 SE PA CWA and United Healthcare EPO to pay health, dental, life insurance, HMO, PPO, indemnity, DMO, EPO and EPO claims incurred under the terms of the plan. The total premiums paid for the plan year ending December 31, 2009 were $66,122,244. Because they are so called "experience-rated" contracts, the premium costs are affected by, among other things, the number and size of claims. Of the total insurance premiums paid for the plan year ending December 31, 2009, the premiums paid under such "experience-rated" contracts were $0 and the total of all benefit claims paid under these contracts during the plan year was $18,048,542. Basic Financial Statement The value of plan assets, after subtracting liabilities of the plan, was $985,188,388 as of December 31, 2009, compared to $889,190,049 as of January 1, During the plan year the plan experienced an increase in its net assets of $95,998,339. This increase includes unrealized appreciation and depreciation in the value of plan assets; that is, the difference between the value of the plan's assets at the end of the year and the value of the assets at the beginning of the year or the cost of assets acquired during the year. During the plan year, the plan had total income of $972,395,014, including employer contributions of $748,557,048, employee contributions of $11,367,576, realized losses of $(23,735,871) from the sale of assets, earnings from investments of $235,931,131, and other income of $275,

23 Plan expenses were $876,396,675. These expenses included $3,800,507 in administrative expenses, and $872,596,168 in benefits paid to participants and beneficiaries. be $23.90 for the full annual report for this plan or $.05 per page for any part an accountant's report; financial information; information on payments to service providers; assets held for investment; transactions in excess of 5% of the plan assets; insurance information, including sales commissions paid by insurance carriers; information regarding any common or collective trusts, pooled separate accounts, master trusts or investment entities in which the plan participates. FOR VERIZON PLAN 551 This is a summary of the annual report of the Verizon Plan 551, EIN , Plan No. 551, for period January 1, 2009 through December 31, The annual report has been filed with the Employee Benefits Security Administration, U.S. Department of Labor, as required under the Employee Retirement Income Security Act of 1974 (ERISA). Insurance Information The plan has contracts with Metropolitan Life Insurance Company to pay life insurance, basic accidental death dismemberment and dependent accidental death & dismemberment claims incurred under the terms of the plan. The total premiums paid for the plan year ending December 31, 2009 were $16,375,075. Because they are so called "experience-rated" contracts, the premium costs are affected by, among other things, the number and size of claims. Of the total insurance premiums paid for the plan year ending December 31, 2009, the premiums paid under such "experience-rated" contracts were $16,375,075 and the total of all benefit claims paid under these contracts during the plan year was $16,490,

24 be $.55 for the full annual report for this plan or $.05 per page for any part insurance information, including sales commissions paid by insurance carriers. FOR VERIZON SICKNESS AND ACCIDENT DISABILITY BENEFIT PLAN FOR MID-ATLANTIC ASSOCIATES This is a summary of the annual report of the Verizon Sickness and Accident Disability Benefit Plan for Mid-Atlantic Associates, EIN , Plan No. 553, for period January 1, 2009 through December 31, The annual report has been filed with the Employee Benefits Security Administration, U.S. Department of Labor, as required under the Employee Retirement Income Security Act of 1974 (ERISA). Basic Financial Statement The value of plan assets, after subtracting liabilities of the plan, was $(9,978,000) as of December 31, 2009, compared to $15,826,576 as of January 1, During the plan year the plan experienced a decrease in its net assets of $25,804,576. This decrease includes unrealized appreciation and depreciation in the value of plan assets; that is, the difference between the value of the plan's assets at the end of the year and the value of the assets at the beginning of the year or the cost of assets acquired during the year. During the plan year, the plan had total income of $30,361,137, including employer contributions of $30,323,465, and earnings from investments of $37,672. Plan expenses were $56,165,713. These expenses included $56,165,713 in benefits paid to participants and beneficiaries. be $.35 for the full annual report for this plan or $.05 per page for any part an accountant's report; financial information; 24

25 transactions in excess of 5% of the plan assets; information regarding any common or collective trusts, pooled separate accounts, master trusts or investment entities in which the plan participates. FOR VERIZON MEDICAL EXPENSE PLAN FOR NEW YORK AND NEW ENGLAND ASSOCIATES This is a summary of the annual report of the Verizon Medical Expense Plan for New York and New England Associates, EIN , Plan No. 556, for period January 1, 2009 through December 31, The annual report has been filed with the Employee Benefits Security Administration, U.S. Department of Labor, as required under the Employee Retirement Income Security Act of 1974 (ERISA). Insurance Information The plan has contracts with Cigna Healthcare NH, ME, Healthnet NY/CT, Tufts Health Plan MA, United Healthcare MA, RI CT, Univera Health Care, UHC Passport Harvard Pilgrim Health Care ME/NH/MA, Capital Dist Physicians Health, Hip Health Plan Of New York, Anthem Healthkeepers VA, Blue Alliance NY, Geisinger Health Plan, Aetna Inc. Upstate NY, Empire BCBS Of NY, HMO Blue-Ma, Aetna Inc. HMO, Aetna Inc. HMO, Medicare HMO Blue, United Healthcare EPO, Horizon Blue Cross Blue Shield Of NJ, Independent Health-New York, MVP Selectcare NY VT, Anthem BCBS HMO Blue NE-NH/MR, Health Net NJ and Fallon Community Health Plan to pay health, HMO and EPO claims incurred under the terms of the plan. The total premiums paid for the plan year ending December 31, 2009 were $92,541,495. Basic Financial Statement The value of plan assets, after subtracting liabilities of the plan, was $(30,859,000) as of December 31, 2009, compared to $14,660,137 as of January 1, During the plan year the plan experienced a decrease in its net assets of $45,519,137. This decrease includes unrealized appreciation and depreciation in the value of plan assets; that is, the difference between the value of the plan's assets at the end of the year and the value of the assets at the beginning of the year or the cost of assets acquired during the year. During the plan year, the plan had total income of $425,178,117, including employer contributions of $424,238,146, employee contributions of $837,897, and earnings from investments of $102,074. Plan expenses were $470,697,254. These expenses included $470,697,254 in benefits paid to participants and beneficiaries. 25

26 be $17.15 for the full annual report for this plan or $.05 per page for any part an accountant's report; financial information; transactions in excess of 5% of the plan assets; insurance information, including sales commissions paid by insurance carriers; information regarding any common or collective trusts, pooled separate accounts, master trusts or investment entities in which the plan participates. FOR VERIZON DEPENDENT GROUP LIFE INSURANCE PLAN FOR NEW YORK AND NEW ENGLAND ASSOCIATES This is a summary of the annual report of the Verizon Dependent Group Life Insurance Plan for New York and New England Associates, EIN , Plan No. 558, for period January 1, 2009 through December 31, The annual report has been filed with the Employee Benefits Security Administration, U.S. Department of Labor, as required under the Employee Retirement Income Security Act of 1974 (ERISA). Insurance Information The plan has a contract with Metropolitan Life Insurance Company to pay life insurance and Dependent Accidental Death and Dismemberment claims incurred under the terms of the plan. The total premiums paid for the plan year ending December 31, 2009 were $1,785,289. Because it is a so called "experience-rated" contract, the premium costs are affected by, among other things, the number and size of claims. Of the total insurance premiums paid for the plan year ending December 31, 2009, the premiums paid under such "experience-rated" contract were $1,785,289 and the total of all benefit claims paid under the contract during the plan year was $861,541. be $.35 for the full annual report for this plan or $.05 per page for any part 26

27 insurance information, including sales commissions paid by insurance carriers. FOR VERIZON SICKNESS AND ACCIDENT DISABILITY BENEFIT PLAN FOR NEW ENGLAND ASSOCIATES This is a summary of the annual report of the Verizon Sickness and Accident Disability Benefit Plan for New England Associates, EIN , Plan No. 559, for period January 1, 2009 through December 31, The annual report has been filed with the Employee Benefits Security Administration, U.S. Department of Labor, as required under the Employee Retirement Income Security Act of 1974 (ERISA). Basic Financial Statement The value of plan assets, after subtracting liabilities of the plan, was $(4,621,000) as of December 31, 2009, compared to $3,570,880 as of January 1, During the plan year the plan experienced a decrease in its net assets of $8,191,880. This decrease includes unrealized appreciation and depreciation in the value of plan assets; that is, the difference between the value of the plan's assets at the end of the year and the value of the assets at the beginning of the year or the cost of assets acquired during the year. During the plan year, the plan had total income of $16,520,283, including employer contributions of $16,507,799, and earnings from investments of $12,484. Plan expenses were $24,712,163. These expenses included $24,712,163 in benefits paid to participants and beneficiaries. be $.35 for the full annual report for this plan or $.05 per page for any part an accountant's report; financial information; information regarding any common or collective trusts, pooled separate accounts, master trusts or investment entities in which the plan participates. 27

28 FOR VERIZON SICKNESS AND ACCIDENT DISABILITY BENEFIT PLAN FOR NEW YORK ASSOCIATES This is a summary of the annual report of the Verizon Sickness and Accident Disability Benefit Plan for New York Associates, EIN , Plan No. 560, for period January 1, 2009 through December 31, The annual report has been filed with the Employee Benefits Security Administration, U.S. Department of Labor, as required under the Employee Retirement Income Security Act of 1974 (ERISA). Basic Financial Statement The value of plan assets, after subtracting liabilities of the plan, was $(11,596,000) as of December 31, 2009, compared to $3,681,703 as of January 01, During the plan year the plan experienced a decrease in its net assets of $15,277,703. This decrease includes unrealized appreciation and depreciation in the value of plan assets; that is, the difference between the value of the plan's assets at the end of the year and the value of the assets at the beginning of the year or the cost of assets acquired during the year. During the plan year, the plan had total income of $50,455,827, including employer contributions of $50,442,955, and earnings from investments of $12,872. Plan expenses were $65,733,530. These expenses included $65,733,530 in benefits paid to participants and beneficiaries. be $.35 for the full annual report for this plan or $.05 per page for any part an accountant's report; financial information; information regarding any common or collective trusts, pooled separate accounts, master trusts or investment entities in which the plan participates. FOR VERIZON BUSINESS HEALTH AND WELFARE PLAN This is a summary of the annual report of the Verizon Business Health and Welfare Plan, EIN , Plan No. 501, for period January 1, 2009 through December 31, The annual report has been filed with the 28

29 Employee Benefits Security Administration, U.S. Department of Labor, as required under the Employee Retirement Income Security Act of 1974 (ERISA). Insurance Information The plan has contracts with Aetna Life Insurance Co., Vision Service Plan, United Health Care, Connecticut General Life Insurance Company, Zurich, Humana Insurance of Puerto Rico, Inc, Takecare, and Bupa International to pay health, dental, vision, life insurance, temporary disability, HMO, PPO, indemnity, AD&D, voluntary AD&D, International Medical And Dental And Medical Benefits Abroad claims incurred under the terms of the plan. The total premiums paid for the plan year ending December 31, 2009 were $15,646,118. Because they are so called "experience-rated" contracts, the premium costs are affected by, among other things, the number and size of claims. Of the total insurance premiums paid for the plan year ending December 31, 2009, the premiums paid under such "experience-rated" contracts were $870,663 and the total of all benefit claims paid under these contracts during the plan year was $2,973,115. be $.35 for the full annual report for this plan or $.05 per page for any part information on payments to service providers; insurance information, including sales commissions paid by insurance carriers. FOR VERIZON POST 1995 COLLECTIVELY BARGAINED RETIREE HEALTH PLAN (PRE-1993 RETIREES) This is a summary of the annual report of the Verizon Post 1995 Collectively Bargained Retiree Health Plan (Pre-1993 Retirees), EIN , Plan No. 567, for period January 1, 2009 through December 31, The annual report has been filed with the Employee Benefits Security Administration, U.S. Department of Labor, as required under the Employee Retirement Income Security Act of 1974 (ERISA). Insurance Information The plan has contracts with Aetna Medicare Advantage NJ, United 29

30 Healthcare MA, RI, CT, Humana-Tampa, Tufts Secure Horizons MA, CIGNA Healthcare Of Maine, Fallon Community Health Plan, HIP Health Plan Of New York, HIP New York, HMO BLUE - MA, Blue Alliance NY, Fallon Senior Plan, Horizon Blue Cross Blue Shield Of NJ, Anthem BCBS HMO Blue NE- NH, MVP Selectcare NY VT, Univera Health Care, Empire Blue Cross Blue Shield Senior NY, Aetna Medicare Advantage NY, Blue Cross Blue Care-FL, Capital Dist Physicians Health, Geisinger HP Gold PA, Health Net NY, Harvard Pilgrim HC MA, Anthem Health Keepers VA, UHC NE Medicare Advantage, Optimum Choice DE WV MD DC VA, Aetna Medicare Advantage Phila, UHC Pacifcare Secure Horizons TX, PacifiCare Secure Horizons AZ, Kaiser Senior Advantage Northern CA, Kaiser Senior Advantage Southern CA, PacifiCare Secure Horizons CA, Aetna Inc. Upstate NY, Empire BCBS of NY, Blue Cross Blue Shield Medicare HMO Blue MA, Aetna Inc HCN Metro, Blue Cross Blue Shield Excellus HCN NY, Aetna Inc HCN Upstate New York, BCBS MA HCN NE, MVP SelectCare HCN VT, Independent Health-WNY Buffalo, Aetna inc. HMO, Humana Group Medicare fl, AETNA INC. HMO, United Healthcare EPO, Security Blue Medicare PA, Health Net HMO CA, HealthAmerica Advantra Pittsburgh, Independent Health-New York, United Healthcare EPO, Optima Health Plan VA, Horizon BCBS of New Jersey, Kaiser Medicare Plus DC,MD,VA, MVP Select Care and Tufts Health Plan MA to pay health, HMO, EPO and EPO claims incurred under the terms of the plan. The total premiums paid for the plan year ending December 31, 2009 were $5,000,507. Basic Financial Statement The value of plan assets, after subtracting liabilities of the plan, was $146,207 as of December 31, 2009, compared to $36,697,355 as of January 1, During the plan year the plan experienced a decrease in its net assets of $36,551,148. This decrease includes unrealized appreciation and depreciation in the value of plan assets; that is, the difference between the value of the plan's assets at the end of the year and the value of the assets at the beginning of the year or the cost of assets acquired during the year. During the plan year, the plan had total income of $147,745,278, including employer contributions of $145,429,267, employee contributions of $3,674,428, and earnings from investments of $(1,358,417). Plan expenses were $184,296,426. These expenses included $33,629 in administrative expenses, and $184,262,797 in benefits paid to participants and beneficiaries. be $23.35 for the full annual report for this plan or $.05 per page for any part 30