Windstream National Pension Plan
Tentative Agreement Summary
A two year tentative agreement has been reached between CWA, IBEW and Windstream Communications on the Windstream National Pension Plan. Changes to the Pension Plan will include the following:
- After June 1, 2017, or as soon as administratively practicable, employees who achieve 30 years of service, regardless of age, will be eligible to retire with an unreduced pension.
- As soon as administratively practicable, a lump sum option will be added to the Windstream Pension Plan.
- Effective June 1, 2017 or as soon as administratively practicable, the Windstream Pension Plan will be frozen to any employee who had 30 or more vesting years of service on June 1, 2017 (see note). Employees who have already achieved more than 30 years of service will receive pension credit for all years worked prior to the freeze.
- All Impacted employees who are accruing participants will receive a one-time employer contribution to the 401K Plan in the amount of $12,000. The contribution may be made in cash or shares of Windstream Holdings, Inc. stock at the discretion of Windstream.
- Employees who are participants in the Pension Plan, including Impacted Employees, prior to the date their pension is frozen, will be permitted to participate in the 401K Plan on the following basis:
- Employees will be allowed to make contributions to the 401K Plan for Federal Income Tax purposes.
- No employer contributions of any kind will be made to the Plan.
- Employees who are not participants in the Pension Plan and Impacted Employees (after pension accruals have been frozen) effective June 1, 2017 or later, will be able to participate in the 401K Plan on the following basis:
- Employee may contribute 1% to 50% (in increments of 1% of their pay, subject to maximum limits set by the Plan.
- Windstream will match the first 3% of employee contributions, plus 50% of the next 2% of employee contributions.
NOTE: Employees impacted by the freeze are referred to as “Impacted Employees” in the MOA.