Document:

Exhibit 10.30  

About this SPD

 

  This is the summary plan description (SPD) for the Verizon Management Pension Plan and the Verizon Enterprises Management Pension Plan. Each plan is a pension plan subject to federal law under the Employee Retirement Income
Security Act of 1974 (ERISA) and its subsequent amendments. This SPD is based on plan provisions effective January 1, 2002. This SPD replaces previous summary materials for pension plans for active eligible management employees of the former Bell
Atlantic and former GTE participating companies.

  Note: If you are an employee of Verizon Hawaii Inc. or GTE Export Corporation, this SPD does not describe how your benefits are determined and paid. You will be provided with separate summary
materials describing your benefits under the plan.

  This SPD is for active eligible employees of participating companies who, as of

  January 1, 2002, had 10 or more years of net credited service. For this purpose, “net credited service” means net credited service under the terms of a pension plan maintained by a former Bell Atlantic company or
accredited service under the terms of a pension plan maintained by a former GTE company.

  In this SPD:

	
  The “plan” refers either to the Verizon Management Pension Plan or to the Verizon
       Enterprises Management Pension Plan in which you are eligible to participate. (No one     is eligible to participate in both of the plans.)

  

  
	
  “Verizon” refers to Verizon Communications Inc.

  

  
	
  The “plan sponsor” refers to the Verizon Corporate Services Group Inc. for the Verizon
       Management Pension Plan and to the Chesapeake Directory Sales Company for the     Verizon Enterprises Management Pension Plan.

  

  
	
  The “company” refers to the plan sponsor and other participating business units in a     particular plan.

  

  
	
  “Verizon affiliates” refers to companies that are owned 80% or more by Verizon.

  

  
	
  The term “salaried” generally refers to employees who are also called “management”     employees.

  

  
	
  The term “hourly” includes both “associates” and non-bargaining unit hourly employees.

  

  
	
  “You” or “your” refers to the covered employee, retiree, spouse or designated beneficiary,     except when the context indicates otherwise.

	
      Verizon Management Pension Plan
        	 
        	
      3/2002
        

  For more information

  
       If you have questions about the plan or need additional information after reading this material, log on to Your Benefits Resources     Web site
or call the Verizon Benefits Center (see page 2 for
details). The Web site and the interactive voice response (IVR) system are available
24 hours a day, seven days a week. Representatives are available to answer your
questions from 8:00 a.m. to 6:00 p.m., Eastern time Monday through Friday (excluding
holidays). See “Benefit resources” on page 2 for more information.

  Your eligibility for, and the amount of, your plan benefits, if any, will be determined by the terms of the plan. Every effort has been made to ensure the accuracy of the information included in this SPD, which is based on the
plan provisions in effect on January 1, 2002. If, however, there is a discrepancy between the information contained in this SPD and the official plan document, the plan document will govern. All terms of the plan are legally enforceable. Copies of
the plan document will be available upon written request to the Verizon Benefits Center at the address provided in the Administrative information section of this SPD (see page 60).

  Changes to the plan

     While Verizon and the plan sponsor expect to continue the plan indefinitely, Verizon and the plan sponsor, by action of the board of directors of either company or delegates of either board, also reserve the right to amend,
modify, suspend, terminate or partially terminate the plan at any time, at their discretion, with or without advance notice to participants, subject to applicable law.

  Upon termination or partial termination of the plan, the accrued benefits of each participant affected by the termination or partial termination (as determined by the plan administrator) shall become fully vested to the extent
funded. Upon termination of the plan, no further benefits are earned, and no increases in previously earned benefits will occur by reason of future service or compensation.

  In the event the plan is terminated in full, plan assets will be allocated, after payment of plan expenses for administration or liquidation, to pay benefits accrued to the date of termination, to the extent and in the order
required by section 4044 of ERISA and the terms of the plan. After all liabilities of the plan have been satisfied, remaining assets are distributed to the company, unless the plan termination occurs within five years of a change in control, as
discussed on page 55.

_______________

Your Benefits ResourcesTM   is a registered trademark of Hewitt Associates LLC.

   

	 Verizon Management Pension Plan 	  	 3/2002 

  If the plan is terminated, you will generally receive benefits at retirement age or, if appropriate, by an earlier distribution, with benefits distributed either in the form of cash or in the form of an annuity contract issued by
an insurance company. See page 59 for a discussion of Pension Benefit Guaranty Corporation (PBGC) benefit guarantees that may apply if the plan is terminated.

  As a matter of prudent business planning, Verizon is continually reviewing and evaluating various proposals for changes in its benefit programs. Because of the need for confidentiality, such proposals are not evaluated below high
levels of management. Verizon employees below such levels and retirees do not know whether Verizon will or will not adopt any future changes and/or new benefit programs. Unless and until Verizon formally announces such changes, no one is authorized
to give assurances that such changes will or will not occur.

   

	 Verizon Management Pension Plan 	  	 3/2002 

  Contents

	
      Highlights
    	

        
	
      Introduction
    	
      1
          
	
      Benefit resources
    	
      2
          
	 	
      Your Benefits Resources
    	
      2
          
	 	
      The Verizon Benefits Center
    	
      2
          
	 	
      Your password
    	
      3
          
	
      Participation
    	
      4
          
	 	
      If you’ve been re-employed or you transfer to the plan
    	
      5
          
	 	
      Special eligibility rules
    	
      5
          
	 	
      When active participation ends
    	
      5
          
	
      How your pension grows
    	

        
	
      Benefit formulas
      	
      7
          
	 	
      How the cash balance formula works
    	
      7
          
	 	 	
      Your opening account balance
          	
      8
          
	 	
      Pay credits
    	
      8
          
	 	 	
      Definition of “eligible earnings”
          	
      9
          
	 	 	
      Differences in pay credits for Verizon Connected Solutions Inc
          	
      10
          
	 	
      Interest credits
    	
      10
          
	 	
      Pay + interest credits
    	
      11
          
	 	 	
      Example: how an account grows
          	
      11
          
	 	
      Unconverted annuity benefits
    	
      11
          
	 	
      How the Highest Average Pay formula works
    	
      12
          
	 	
      Determining Highest Average Pay formula benefits at earlier payment ages
    	
      12
          
	 	
      Examples
    	
      14
          
	 	 	
      An example of a Highest Average Pay calculation
          	
      14
          
	 	 	
      Examples of the Rule of 75
          	
      15
          
	 	 	
      Examples of benefit reductions under the Rule of 75
          	
      15
          
	 	 	
      Examples of benefit reductions when the Rule of 75 is not met
          	
      15
          
	 	 	
      Examples of the Rule of 73
          	
      16
          
	 	 	
      Example of benefit reductions under the Rule of 73
          	
      16
          
	 	
      If you’re eligible for the former Bell Atlantic modified former pension formula (MFPF)    	
      17
        
	 	
      If you’re eligible for the former GTE social security integration formula 	
      18
        
	 	 	
      Social security integration level
        	
      18
        
	 	 	
      Determining social security integration formula benefits at earlier payment ages
        	
      19
        
	 	 	
      Reductions for benefits under other pension plans
        	
      19
        
	 	 	
      Effect of in-service payment
        	
      19
        
	 	 	
      Other special rules that may apply
        	
      19
        
	 	
      Which formula will be best for you?    	
      19
        
	 	
      Federal limits on benefit amounts      	
      20
        
	 	
      Keeping track of your pension  	
      20
        

 

	 Verizon Management Pension Plan 	i 	 3/2002 

	
      How benefits are paid
    	

        
	
      Payment of your benefit        	
      22
        
	 	   Vesting	
      22
        
	 	      When pension payments can start 	
      22
        
	 	In-service payment option	
      23
        
	 	Requesting your pension payment 	
      23
        
	 	
      Forms of payment at a glance   	
      24
        
	 	 	
      Standard forms of payment
        	
      25
        
	 	 	
      Optional forms of payment
        	
      25
        
	 	
      Estimating the amount of your annuity  	
      28
        
	 	
      How your cash balance account is converted to an annuity       	
      28
        
	 	 	
      Example: single life annuity
        	
      29
        
	 	 	
      Example: joint and 50% surviving spouse annuity
        	
      29
        
	 	 	
      Calculating a lump-sum benefit from the Highest Average Pay formula (or other
       annuity formula)
        	
      29
        
	 	 	
      Converting a single life annuity to another form of annuity payment
        	
      30
        
	 	
      How taxes affect your pension  	
      30
        
	 	 	
      Ten percent penalty tax
        	
      30
        
	 	 	
      Direct rollovers
        	
      31
        
	 	 	
      Participant rollovers
        	
      31
        
	 	 	
      Annuity or installment payments for 10 or more years
        	
      32
        
	 	
      If you die before your pension commencement date       	
      33
        
	 	 	
      Form and timing of payment for preretirement death benefit
        	
      33
        
	 	 	
      Naming a beneficiary for your preretirement death benefit
        	
      34
        
	 	 	
      Changing your beneficiary
        	
      34
        
	
      How service is counted
    	

        
	
      Details about service  	
      35
        
	 	
      Types of service       	
      35
        
	 	 	
      Vesting service
        	
      35
        
	 	 	
      Net credited service (NCS)
        	
      36
        
	 	 	
      Pension accrual service
        	
      36
        
	
      If you become disabled 	
      38
        
	
      If you are rehired after a break in service    	
      39
        
	 	 	
      If you had an accrued benefit but did not receive payments
        	
      40
        
	 	 	
      If you return to work after receiving payments
        	
      40
        
	
      If you transfer to or from eligible employment 	
      42
        
	 	
      If you were a former hourly employee in an hourly pension plan and you become an
       eligible employee under the Verizon Management Pension Plan   	
      42
        
	 	
      If you were a former hourly employee in an hourly pension plan and you become an
       eligible employee in the Verizon Enterprises Management Pension Plan  	

        
	 	
      If you were previously a participant in another cash balance plan      	
      43
        
	 	
      If you’ve transferred to a position as an hourly employee 	
      44
        
	 	
      If you’ve transferred to a position as a salaried employee with no pension plan   	
      44
        
	
      Bell System portability        	
      45
        
	 	 	
      Eligibility
        	
      45
        
	 	 	
      If you’ve transferred from a portability company
        	
      46
        
	 	 	
      Special vesting rules
        	
      46
        
	 	 	
      Waiver of portability
        	
      46
        

	 Verizon Management Pension Plan 	ii 	 3/2002 

	 	 	
      Transfers of pension liabilities from this plan to another plan
        	
      46
        
	 	 	
      Employees of non-portability companies
        	
      47
        
	
      Details about the MFPF
    	

        
	
      The modified former pension formula benefit    	
      48
        
	 	
      Eligibility    	
      48
        
	 	
      How the MFPF benefit is calculated     	
      49
        
	 	 	
      Some important definitions
        	
      49
        
	 	
      Determining MFPF benefits at earlier payment ages      	
      50
        
	 	
      Payment options        	
      51
        
	 	
      How your benefit may be offset 	
      52
        
	
      Administrative information
    	

        
	
      Introduction   	
      53
        
	
      Additional information 	
      54
        
	 	
      If you divorce or separate     	
      54
        
	 	
      How benefits could be reduced, lost, suspended or delayed      	
      54
        
	 	
      Change in ownership or control 	
      55
        
	 	
      Top-heavy rules        	
      55
        
	 	
      Claims and appeals procedures  	
      56
        
	 	
      Pension Benefit Guaranty Corporation (PBGC)    	
      59
        
	 	
      Rights of participants and beneficiaries under ERISA   	
      60
        
	 	 	
      Receive information about your plan benefits
        	
      60
        
	 	 	
      Prudent actions by plan fiduciaries
        	
      61
        
	 	 	
      Enforce your rights
        	
      61
        
	 	 	
      Assistance with your questions
        	
      62
        
	 	
      Plan information       	
      62
        
	 	 	
      Plan sponsor
        	
      62
        
	 	 	
      Plan administrator
        	
      63
        
	 	 	
      Plan funding
        	
      63
        
	 	 	
      Plan identification
        	
      63
        
	 	 	
      Plan year
        	
      64
        
	 	 	
      Agent for service of legal process
        	
      64
        
	 	
      Participating companies        	
      64
        

	 Verizon Management Pension Plan 	iii	 3/2002 

  Highlights

  Introduction

 

  The plan provides competitive benefits that help you work toward financial security in retirement.

	
  You are generally eligible to participate in the plan if you’re a salaried, regular full-time or
       regular part-time employee of a participating company or an hourly employee whose plan     participation is authorized by a collective bargaining agreement.

  

  
	
  Participation is automatic on the day you become an eligible employee. You do not have to     enroll in the plan.

  

  
	
  If you had at least 10 years of net credited service (see page 35) as of January 1, 2002, the
       plan will pay a benefit based on
the formula that provides the most value to you: the cash
       balance formula or the Highest Average Pay formula. Benefits based on alternate formulas     may also be available to you.

	
  The company makes contributions to the pension fund to fund all benefits – there is no cost     to you for this benefit.

  

  
	
  You are vested in the plan when you have at least five years of vesting service (see page 35) or if you are employed at normal retirement age (see
  page 22).

  

  
	
  If you are vested, you can receive benefits from the plan at any time after you leave the     company and all Verizon affiliates.

  

  
	
  You can receive your benefit as a single lump sum or in various types of annuities.

  

  
	
  The plan pays a death benefit to your spouse or designated beneficiary if you die before     benefits begin.

  

  

	 Verizon Management Pension Plan 	1 	 3/2002 

 

  Benefit resources

 

  In order to provide you with flexibility, convenience and ease of use, Verizon offers you two ways of accessing your pension benefits information.

  Your Benefits Resources

     The Verizon Benefits Center offers a state-of-the-art Web site called Your Benefits Resources, which gives you the tools you need to manage your pension benefits efficiently, effectively and conveniently. Your Benefits Resources is available 24 hours a day, Monday through Saturday and from 1:00 p.m. to midnight, Eastern time on Sunday. You can access Your Benefits Resources Web site via the Internet at
http://resources.hewitt.com/verizon.

	
  Use this secure, password-protected site to:

	
  Learn the value of your cash balance account.

  

  
	
  Model the value of your Highest Average Pay formula benefit.

  

  
	
  Estimate your future benefit under all formulas available to you as a lump sum or an     annuity.

  

  
	
  Determine whether you’re vested in the plan.

  

  
	
  Update your beneficiary designations.

  

  
	
  Change Your Benefits Resources password.

  From time to time, additional tools will be added to Your Benefits Resources Web site to help you better manage your benefits.

  The Verizon Benefits Center

     Using
  one toll-free telephone number, you can connect to the Verizon Benefits Center,
  as well as other Verizon benefit providers. To contact the Verizon Benefits
  Center, call Verizon Benefits Connect at 1-866-998-8777 and press “1.”

  The Verizon Benefits Center offers an interactive voice response (IVR) system to provide you with benefits information. The IVR system is available 24 hours a day, Monday through Saturday and from 1:00 p.m. to midnight, Eastern
time on Sunday.

 

	 Verizon Management Pension Plan 	2 	 3/2002 

 

  You can also speak with a benefits representative if you have questions about your pension. Benefits representatives are available to help you Monday through Friday from 8:00 a.m. to 6:00 p.m., Eastern time.

  If you are hearing-impaired, contact Verizon Benefits Connect through the relay service of your choice. These telephone numbers are located in your local telephone directory. Since connecting with Verizon Benefits Connect is
toll-free, you incur no telephone charges when using a relay service.

  Your password

     If
  you are a current Verizon employee, you have already established a “password” to
  use when accessing the Verizon Benefits Center. If you are a new hire, you
  will receive a password with your new hire benefits materials. Your password
  is used to identify you and is confidential, so your privacy is protected and
  your information is kept secure. Your Benefits Resources Web site and the IVR use the
combination of your password and social security number to verify your identity. You or any person calling on your behalf will need to know your password in order to obtain information about your benefits from Your
Benefits Resources Web site or the Benefits Center.

  If you want to change your password or if you have forgotten your password and want to request a new one, you can do so on Your Benefits Resources Web site, or by calling
the Verizon Benefits Center and following the IVR instructions.

	 Changing your password. If
        you know
       your current password
        and simply want a       new one, you can
        change it via Your Benefits Resources Web
        site or the IVR
       system and
        the change is effective       immediately.

                  

  
	 Requesting a new password when you have
          forgotten your current password.        If
          you cannot remember your password, you can request a new password via Your
          Benefits Resources Web site or the IVR
          system. Your request will go to the Verizon Benefits Center where a
          new password will be assigned to you. Your new password will be
          mailed to your home address – you should receive it within seven
          to 10 business days. Until you receive
          your new password, you will not be able to access Your Benefits Resources Web
          site, and you will not be able to get personalized information or conduct
          transactions using the IVR system. Additionally, Verizon Benefits Center
          representatives will only be able to answer general questions about
          your benefits.

  Remember, you can get help online
        if you forget your password by setting up a “hint.” Just log on to the site, enter your social security number, choose the “hint” feature
    and you will get help in remembering your password.

   

	 Verizon Management Pension Plan 	3 	 3/2002 

 

  Participation

 

  You are an eligible employee participating in the plan with both the cash balance and Highest Average Pay formulas if you had at least 10 years of net credited service (see page
35) as of January 1, 2002 * and you are:

	
  A salaried, regular full-time or regular part-time employee of a participating company (see page
  64).

  

	An hourly employee of a participating company
  who is covered by a collective bargaining agreement that provides for participation
  in this plan.

    

	
    An hourly employee covered by a collective
       bargaining
      agreement who is temporarily promoted
       to
      a regular salaried position with a participating       company
      for one or more years.  

  You begin to participate in the plan on your first day of work as an eligible employee, as described above –there is no waiting period. Participation in the plan is automatic; you don’t have to complete any forms to
begin participation.

You are not an eligible employee participating in the plan if you are:
	
  A term employee.

  

  
	
  An hourly employee in “temporary promotion”     status for less than one year.

  

  
	
  Any other hourly employee (unless you are an
       hourly employee whose bargaining agreement
   provides for participation in the plan, as noted     above).

  

_______________

	*	If you are a represented employee of Verizon
        Connected Solutions Inc. and you are participating in the plan under
        your collective bargaining agreement,
        you are not eligible for benefits under the Highest Average Pay formula,
        even if you had 10 or more years of credited service as of January 1,
        2002. 

 

  	 Verizon
          Management Pension Plan 	4 	 3/2002 

	
  An employee in a division or unit that has been designated by the company as     nonparticipating.

  

  
	
  A leased employee.

  

  
	
  An employee of a temporary agency providing services to the company.

  

  
	
  An independent contractor or consultant or other individual who is not initially classified     as an employee by the company.

  

  
	
  An individual working for the company under a contract or agreement that specifies that     the individual is not eligible to participate in the plan.

  Note: If a court, the Internal Revenue Service or any other enforcement authority or agency finds that an individual excluded from the definition of eligible employee included in this section
should be treated as an eligible employee of a participating company, such individual is nonetheless expressly excluded from the definition of eligible employee and is expressly ineligible for benefits under the plan.

  If you’ve been re-employed or you transfer to the plan

     If
  you’ve been re-employed by the company or you have transferred from a noncovered hourly position or another Verizon affiliate, you’re
  eligible for the plan on your first day of work as an eligible employee. See pages 39-41 for more information.

  Special eligibility rules

     There are special eligibility rules that apply for employees of other companies.

  Employees of Verizon Technologies Inc., Federal Network Systems LLC or BBNT Solutions LLC who participated in the plan prior to being employed by those affiliates are eligible for the plan through May 31, 2004. Thereafter, they
are no longer eligible.

  When active participation ends

     You are a plan participant as long as you have a vested benefit in the plan that has not been paid to you in full.

  You stop earning benefits under the plan when your status as an eligible employee, and thus your active participation, ends. You are no longer an eligible employee on the earliest of the date you:

	
  Leave the company and all Verizon affiliates,

  

  
	
  Have a status change that makes you an ineligible employee,

  

  
	
  Die or

	 Verizon
          Management Pension Plan 	5 	 3/2002 

	
  Become a participant in another Verizon affiliate’s pension or cash balance plan. If you
       transfer companies and are eligible to participate in another Verizon affiliate’s pension or
       cash balance plan, your participation in this plan will end as of the date of your transfer,
       and your participation in the new plan will begin immediately (or, if later, when you meet
       any service eligibility requirements for that plan). Depending on the Verizon affiliate
       and/or position to which you transfer, your pension benefit under the plan may transfer to     your
new plan. See pages 40 and following for more information.

 

	 Verizon
          Management Pension Plan 	6 	 3/2002 

  How your pension grows

  Benefit formulas

 

  As an eligible employee with at least 10 years of net credited service (see page 35) as of January 1, 2002, you accrue benefits under both the cash balance
formula and the Highest Average Pay formula. In addition:

	
  If you’re a former Bell Atlantic employee eligible for a benefit under the modified former
       pension formula (MFPF), your benefit as of December 31, 2001 under that formula will
       also be calculated to determine which benefit of all formulas available to you provides the     highest value. See “The modified former pension formula benefit” on page 48 for more     information.

  

  
	
  If you’re a former GTE employee who had an accrued benefit under a management
       pension plan maintained by a former GTE company as of December 31, 2001, you
       will also accrue
benefits under the alternative social security integration formula until     May 31, 2004. See page 18 for more information.

  When you retire or leave the company with a vested benefit, your benefit will be based on the formula that provides the highest value to you.

  Note: If you are a represented employee of Verizon Connected Solutions Inc. and you are participating in the plan under your collective bargaining agreement, you are not eligible for benefits under the Highest Average Pay
formula, even if you had 10 or more years of net credited service as of January 1, 2002.

  How the cash balance formula works

     Under the cash balance formula, you have a cash balance account in the plan. Your cash balance account has a specific opening balance amount as of January 1, 2002. After that, pay credits and interest credits are added to your
cash balance account at the end of every calendar month, as long as you are an eligible employee. Interest credits continue to be credited every month after you cease to be eligible until your benefit is paid to you. You make no contributions to the
plan.

 

	 Verizon
        Management Pension Plan 	7 	 3/2002 

 

  Your opening account balance

     If you are an eligible employee on January 1, 2002, the amount of your opening account balance depends on which pension plan you participated in before January 1, 2002:

	
      If you participated in...
          	
      Here’s your opening balance...
          
	
      A former Bell Atlantic
       cash balance pension plan
        	
      Your balance in that cash balance plan as of the end of business on
       December 31, 2001 continued in the plan effective January 1, 2002
        
	
      A former GTE
       management pension
       plan
        	
      Verizon created an opening account balance for you as of January 1, 2002
           approximating what your account would have been if you had participated
           in the Verizon plan since your date of hire (or your adjusted service date,
           as appropriate)
      

      The calculation started with your current pay (up to the annual limit of
           $200,000) and estimated historical pay, assuming past pay increases of 4%
           per year. Then pay credits and interest credits (assuming 6% interest per
           year) were determined using your estimated historical pay. The opening
           balance can never be less than the present value of your accrued benefit as
           of December 31, 2001 under the GTE formula payable to you at age 65
      

      Because your opening balance is based on assumptions, it will differ from
           what your opening balance would have been
          if Verizon had done a “true”
           calculation based on your actual pay history and actual interest rates. For
           more information about how your opening balance was calculated and to
           view your account balance, log on to Your Benefits Resources Web site
           (see page 2)
      

  If you’re hired on or after January 1, 2002, your opening account balance will be $0. If you are rehired on or after January 1, 2002, your opening account balance will also be $0, unless you have a cash balance account from
prior participation in this plan or a former Bell Atlantic cash balance plan that has not been distributed to you.

  Pay credits

  Pay credits are added to your account on a monthly basis. Pay credits are a dollar amount determined as a percentage of your eligible earnings for the month based on your total points. Points used for determining pay credit
percentages are the total of your age and net credited service (see page 35) counted in years, months and days, then rounded down to the nearest whole number of years. Your
pay credit points are determined each January 1 and remain the same for the entire year. As your points increase in future years, the pay credit percentage you receive may increase, as shown in the chart below, until you reach the maximum pay credit
percentage.

	
      Age + service =
          
      points
               	
      Pay credit
          
      percentage
               
	
      Fewer than 35 points
        	
      4%
        
	
      35 to 49 points
        	
      5%
        
	
      50 to 64 points
        	
      6%
        
	
      65 or more points
        	
      7%
        

	 Verizon
        Management Pension Plan 	8 	 3/2002 

  Definition of “eligible earnings”

     In
  general, your eligible earnings include your base salary or wages, sales commissions
  and sales bonuses that are designated as benefits-eligible, short-term incentive
  pay (excluding senior managers’ short-term incentives
for pay credits), differentials, premiums, single-sum merit payments, temporary
  increases in pay for temporary promotions, corporate profit sharing awards
  and any back pay awards.

	
	

	
      For a full-time salaried employee, your base salary is your highest salary rate for the month. For a part-time employee, actual base compensation is used.     
	 
	
	

	
      For any unpaid absence for which you earn pension accrual service (see page 35), you will be deemed to have eligible earnings equal to your monthly base
pay rate in effect immediately before the absence. If you are paid on a commissions basis, this “deemed” rate will be increased by the monthly average of your commissions for the 12-month period immediately before your
absence.  
	 
	
	

	
      Any eligible earnings that are paid to you after you leave the company and all Verizon affiliates will also be taken into account when calculating your pay credits, as long as:       
	 
	 	
—	
      You were an active participant in the plan as of your termination date.        
	 	
—	
      The payment is made on or after January 1, 2002.       
	 	
—	
      The eligible earnings are paid either in the plan year in which you terminate employment or in the following plan year.        
	 	
—	
      The payment is not attributable to your employment with Verizon Connected Solutions Inc. as an employee who is covered by a collective bargaining agreement.   
	 
	
	

	
      Eligible earnings do not include overtime, employee performance awards or any other type of compensation that is not listed above. In addition, except as noted starting on page 12 for purposes of the Highest Average Pay formula, eligible earnings generally do not include pay for periods while you are not an eligible
employee participating in the plan.       
	 
	
	

	
      Federal law limits the amount of eligible earnings that may be taken into account in any year. This limit is adjusted for inflation and is $200,000 in 2002.   

  Example: determining pay credits

     Elena is a regular, salaried employee. On January 1 of the current year, she is 38 years and 6 months of age (38.5), with 12 years and 3 months of service (12.25) and 50 points (38.5 + 12.25= 50.75 rounded down to 50). As
indicated in the pay credit percentage chart on page 8,
with 50 points, Elena’s cash balance account receives pay credits equal to 6% of her monthly pay each month of
the year. If Elena’s monthly pay is $5,000, $300 (6% x $5,000 = $300) would be credited to her cash balance account at the end of each month of the current year.

	 Verizon
        Management Pension Plan 	9 	 3/2002 

 

  Differences in pay credits for Verizon Connected Solutions Inc.

     If you are an employee of Verizon Connected Solutions Inc. who is covered by a collective bargaining agreement providing for participation in the plan, your pay credit percentages are slightly different from what is indicated on
the chart on the previous page. Your pay credit percentages are determined from the following chart:

	
      Age + service =

          
      points
          	
      Pay credit
          
      

      percentage
          
	
      Fewer than 35 points
        	
      4%
        
	
      35 to 49 points
        	
      4.5%
        
	
      50 to 64 points
        	
      5%
        
	
      65 or more points
        	
      5.5%
        

  Interest credits

     Interest
  credits are added to your cash balance account on a monthly basis, before pay
  credits are added. The monthly interest credit is calculated by multiplying
  your account balance at the end of the applicable prior month by one-twelfth
  of the annual interest credit rate. The annual interest credit rate is the
  average annual yield on U.S. Treasury Securities with a constant maturity of
  one year, plus 1%. However, the annual interest credit rate under the plan
  may not exceed the rate under the Internal Revenue Code for determining the
  present value of pension benefits (the “IRC Rate”). The IRC Rate
  is currently the average annual yield on 30-year Treasury bonds.

  The interest credit rate is adjusted quarterly, based on market rates for the second month of the prior quarter. Rates are published by the Federal Reserve. For example, in 2002, interest was credited for the months of January,
February and March based on the November 2001 rate of 3.18%, as shown below:

	
      Second month of
      
      

      prior quarter
      	
      1-year Treasury
      
      

      securities rate
      	
      1-year rate plus
          
      

      1 percentage
          
      

      point
          	
      30-year
          
      

      Treasury bond
          
      

      rate
          	
      Rate applicable
          
      

      for interest
          
      

      credits
          
	
      November 2001
        	
      2.18%
        	
      3.18%
        	
      5.12%
        	
      3.18%
        

  The interest rate for the second quarter of 2002 will be based on the February rate; the interest rate for the third quarter will be based on the May rate; and the rate for the fourth quarter will be based on the August
rate.

	 Verizon
        Management Pension Plan 	10 	 3/2002 

 

  Pay + interest credits

  Example: how an account grows

     Assume that William has an account valued at $10,000 and has 61 points for determining pay credits. The following example shows how his account can grow with pay and interest credits if his annual base pay is $50,000 and he
receives a 10% bonus in March each year.

	
      Date
    	
      Interest credits1
    	
      Pay
          
      

      credits
          	
      Account
          
      

      balance
          
	
      12/31/02
        	 

        	 

        	
      $10,000.00
        
	
      1/31/03
        	
      $26.50
        	
      $250.00
        	
      $10,276.50
        
	
      2/28/03
        	
      $27.23
        	
      $250.00
        	
      $10,553.73
        
	
      3/31/03
        	
      $27.97
        	
      $550.00
        	
      $11,131.70
        

1 Assumes 3.18% annual interest credit rate ÷ 12 and rounded to five decimal places.
This equals a monthly interest credit rate of .00265.

  Unconverted annuity benefits

   You may have an unconverted annuity benefit under the plan if:

	  You were rehired after the applicable cash balance conversion date for the former Bell Atlantic, NYNEX or GTE management pension plans and you had an accrued
    benefit under one of those plans that was not previously cashed-out (see page 40);

    

    
	  The accrued benefit you earned under an hourly pension plan maintained by a Verizon affiliate has been transferred to the plan (see page 42); or

    

  
	  The accrued benefit you earned under a traditional pension plan maintained by a portability company has been transferred to the plan (see page 45).

  Your unconverted annuity benefit will not be converted to a cash balance account and will be expressed in the form of a single life annuity payable beginning on your normal retirement date (see page 22). If you have an unconverted annuity benefit, your plan benefit will equal the greatest of the combined value of your unconverted annuity and
cash balance formula benefits, your Highest Average Pay formula benefit and, if applicable, your MFPF or social security integration formula benefit.

 
 

 

	 Verizon
        Management Pension Plan 	11 	 3/2002 

 

  Your unconverted annuity benefit will generally be adjusted for payment prior to your normal retirement date, according to the terms of the plan in which the unconverted annuity benefit was earned.

  How the Highest Average Pay formula
  works

     The Highest Average Pay formula provides a benefit payable in the form of a single life annuity beginning on your normal retirement date (that is, the first day of the month following the month in which you reach normal retirement
age – see page 22). The Highest Average Pay formula has two components.

  1. Until January 1, 2008, here’s how the Highest Average Pay formula works:

1.35%

x

Your average annual compensation

x
   

All your years of pension accrual service (see page 35)

   
   2.  Starting January 1, 2008, the
      Highest Average Pay formula will be modified to determine your benefit as follows:

  The benefit you have earned up to January 1, 2008 

  + 

  1.35% x your annual eligible earnings in 2008

  + 

  1.35% x your annual eligible earnings in 2009 

  +

  1.35% x your annual eligible earnings in 2010

...and
    so on.

  Determining Highest Average Pay
  formula benefits at earlier payment ages

     If you are vested, you can receive benefits from the plan at any time after you leave the company and all Verizon affiliates (see page 22). Regardless of
when you take a distribution, the benefit payable to you under the cash balance formula is based on the value of your cash balance account at the time of distribution. However, since the Highest Average Pay formula determines a single life annuity
benefit payable on your normal retirement date, the benefit amount must be adjusted if payment is to begin earlier than your normal retirement date.

  This adjustment to the Highest Average Pay formula benefit generally reduces the benefit to take into account the longer period over which a benefit starting at an earlier date will be paid. Please note that if the benefit is
adjusted, the adjustment applies for the entire period over which the benefit is paid.

	 Verizon
        Management Pension Plan 	12 	 3/2002 

 

 

	
	

	
      If you start payment at your normal retirement date. If you start payment of your pension on your normal retirement date, the single life annuity calculated for you under the Highest Average Pay
formula is not reduced.   
	 
	
	

	
      If you meet the Rule of 75. You meet the Rule of 75 if your age (in completed years and months) and your years and partial years of net credited service (see page 35) of at least 15 years total at least 75 points when you terminate employment with the company and all Verizon affiliates. If you meet the Rule of 75 and you are at least age 55 when your pension
begins, the single life annuity calculated for you under the Highest Average Pay formula is not reduced. If you meet the Rule of 75 but begin your pension before age 55, the single life annuity benefit is reduced by 3% for each year your benefit
begins before age 55 (that’s .25% per month), with a maximum reduction of 18%.       
	 
	
	

	
      If you’re involuntarily separated for business reasons and you meet the Rule of 73. 
	 	
  You meet the Rule of 73 if your age (in completed years and months) and your years and partial years of net credited service of at least 15 years total at least 73 points when you terminate employment with the company and all
Verizon affiliates. If you meet the Rule of 73, two types of pension reductions can apply:       
	 
	 	
—  	
      If you begin your pension benefits before age 55 but after you “age in” to 75 points, your single life annuity benefit is reduced 3% per year (.25% per month)
for each year you are under age 55, to a maximum of 18%, as described above for the Rule of 75.   
	 
	 	 	
  To eliminate this reduction, you may wait until you reach age 55 to begin benefits.        
	 
	 	
—  	
      If you begin pension benefits before you “age in” to 75 points, your pension is reduced:    
	 
	 	 	
–  	
      First, by applying the reduction described in the bullet above as if you had reached the age at which you would have “aged-in” to 75 points (freezing your service at termination); and      
	 
	 	 	
–  	
      Second, by applying an actuarial reduction of .6% per month for each month you begin your benefits before reaching 75 points. The maximum reduction for this purpose is 14.4%. (To eliminate this second reduction, you can wait to “age in” to the Rule of 75 before taking the pension benefit.)   

  If your pension is subject to this two-step reduction, your single life annuity benefit is multiplied by 100% minus the first reduction, and that reduced single life annuity benefit is then multiplied by 100% minus the second
reduction. For example, if you would “age in” to 75 points at age 54 and you start your benefit while you are still two years from reaching 75 points, your single life annuity benefit is multiplied by 97% (100% - 3%) for the first
reduction, and that reduced benefit is multiplied by 85.6% for the second reduction (100% - 14.4%) . Thus, your single life annuity benefit would be multiplied by 83.03%, meaning there is a 16.97% overall reduction.

	 Verizon
        Management Pension Plan 	13 	 3/2002 

   

  		

	If you’re disabled. If
            you have at least 15 years of net credited service and you’re
       considered
            disabled under the plan, the single life annuity calculated for you
            under the
       Highest Average Pay
            formula is not reduced. You are considered disabled under the plan
       if
            you are eligible to receive disability benefits under Verizon’s
            Long-Term Disability
       Income Protection
            Plan (but not the former Bell Atlantic LTD plan), or would be eligible       to
            receive disability benefits under the Verizon LTD Plan if you had
        been participating.
	 	 
		

	 If you otherwise start payment
              before your normal retirement date. If
              you start your
       pension
              before your normal retirement date, you don’t meet the Rule
              of 75 or the Rule of
       73 and
              you are not disabled, the single life annuity calculated for you
              under the Highest
       Average Pay
              formula will be actuarially reduced for each month you start your
              benefit
       prior to your normal retirement date. In this situation, the amount
              your pension is reduced
       is significantly
              greater than the amount a pension is reduced if you meet the Rule
              of 75. For more information on early payment of a vested pension
when you don’t meet the       Rule of
75, please call the Verizon Benefits Center.

  
  Examples     

  The following examples provide more information about how the single life annuity calculated under the Highest Average Pay formula is adjusted when payment begins before your normal retirement date.

  An example of a Highest Average Pay calculation

     Eduardo is eligible for a benefit under the Highest Average Pay formula and decides to retire January 1, 2011, when he will have 27 years of pension accrual service and net credited service. He will be age 57 at retirement, so he
will meet the Rule of 75 (see page 13)
and will qualify for an unreduced pension. For this example, let’s assume
that as of January 1, 2008, Eduardo will have 24 years of pension accrual service,
and the average of his highest five years of pay will be $65,000. His annual
benefit earned to January 1, 2008 under the Highest Average Pay formula will
therefore be:

	
1.35% x $65,000 x 24 = $21,060

  Also, assume Eduardo’s pay is $68,000 in 2007, and it increases by 4% each year for 2008, 2009 and 2010, so that his pay in those years is $70,720, $73,549 and $76,491, respectively. His additional pension benefits for those
years will be approximately:

  2008: 1.35% x $70,720 =    $955 

  2009: 1.35% x $73,549 =    $993 

  2010: 1.35% x $76,491 = $1,033 

  Total added:                     $2,981

  So Eduardo’s annual pension under the Highest Average Pay formula will be $21,060 + $2,981 = $24,041.

  His monthly pension will be $24,041 / 12 = $2,003 in the form of a single life annuity payable beginning on January 1, 2011.

	 Verizon
        Management Pension Plan 	14 	 3/2002 

 

  Examples of the Rule of 75

     The following examples show how the Rule of 75 applies to various employees at termination:

	
      Maria
          	 

        	
      Carl
          	 

        
	
      Maria’s age:
        	
      50 years 3 months
        	
      Carl’s age:
        	
      48 years 8 months
        
	
      Maria’s years of service:
        	
      26 years 5 months
        	
      Carl’s years of service:
        	
      26 years 11 months
        
	
      Maria’s total points:
        	
      76 years 8 months
        	
      Carl’s total points:
        	
      75 years 7 months
        
	
      Maria meets the Rule of 75 because her total points
       are at least 75, and she has 15 years of service
        	
      Carl meets the Rule of 75 because his total points
       are at least 75, and he has 15 years of service
        
	
      John
                 	
      Louise
                 
	
      John’s age:
        	
      55 years 7 months
        	
      Louise’s age:
        	
      62 years 9 months
        
	
      John’s years of service:
        	
      19 years 4 months
        	
    Louise’s years of service: 	12 years 5 months 
	
      John’s total points:
        	
      74 years 11 months
        	
      Louise’s total points:
        	
      75 years 2 months
        
	
      John does not meet the Rule of 75 because his total
       points are not at least 75, even though he has more
       than 15 years of service
        	
      Louise does not meet the Rule of 75 because she
       does not have 15 or more years of service, even
       though she has 75 points
        

  Examples of benefit reductions under the Rule of 75

  Assume
  the following employees all have earned an annual single life annuity benefit
  of $30,000 under the Highest Average Pay formula when they retire, all have
  met the Rule of 75, but they retire and begin benefits at different ages. Here’s
  how the 3% benefit reductions will affect their pension:

	
      Name
          	
      Age
          	
      Percentage reduction
          	
      Benefit amount
          
	
      Alexandra
        	
      57 and 3 months
        	
      0%
        	
      $30,000
        
	
      Brian
        	
      55 and 6 months
        	
      0%
        	
      $30,000
        
	
      Charlie
        	
      54 and 1 month
        	
      2.75%
        	
      $29,175
        
	
      Danielle
        	
      53 and 9 months
        	
      3.75%
        	
      $28,875
        
	
      Evelyn
        	
      52 and 4 months
        	
      8%
        	
      $27,600
        
	
      Fred
        	
      51 and 11 months
        	
      9.25%
        	
      $27,275
        
	
      Gerry
        	
      50 and 2 months
        	
      14.5%
        	
      $25,650
        
	
      Howard
        	
      49 and 10 months
        	
      15.5%
        	
      $25,350
        
	
      Irene
        	
      48 and 5 months
        	
      18%
        	
      $24,600
        

  Examples of benefit reductions when the Rule of 75 is not met

  The
  chart below shows how benefits are reduced if an employee leaves the company
  with a vested benefit, doesn’t meet the Rule of 75 (or the Rule of 73 for involuntary separations), and starts benefits before the
employee’s normal retirement date. Assume the annual Highest Average Pay
single life annuity benefit for each person would be $30,000 at the normal retirement
date.

	 Verizon
        Management Pension Plan 	15	 3/2002 

 

	
      Name
          	
      Age when benefit
          
      begins
          	
      Percentage reduction
          	
      Benefit amount
          
	
      Alexandra
        	
      60
        	
      33.3%
        	
      $20,010
        
	
      Brian
        	
      55
        	
      58.3%
        	
      $12,510
        
	
      Gerry
        	
      50
        	
      73.7%
        	
      $ 7,890
        
	
      Mary
        	
      45
        	
      82.0%
        	
      $ 5,400
        
	
      Steven
        	
      40
        	
      87.3%
        	
      $ 3,810
        
	
      Vicky
        	
      35
        	
      91.0%
        	
      $ 2,700
        

  Examples of the Rule of 73

  The following examples show how the Rule of 73 applies at termination:

	
  If you’re age 48 and two months with 25 years and three months of service, you will meet
       the Rule of 73.

      

      
	
  If you’re age 56 and one month with 17 years and six months of service, you will meet the
       Rule of 73.

      

      
	
  If you’re age 46 and two months with 25 years and three months of service, you will not
       meet the Rule of 73 because your age plus service does not total at least 73.

      

      
	
  If you’re age 59 and nine months with 14 years and one month of service, you will not
       meet the Rule of 73 because you do not have 15 years of service, even though you have
       73 points.

  Example of benefit reductions under the Rule of 73

  The
  following example shows reductions to the Highest Average Pay Formula single
  life annuity benefit if you’re involuntarily separated in 2002 for business
  reasons and meet the Rule of 73, but you start benefits before reaching age
  55 and without aging into the Rule of 75. Assumptions:

	
  You’re age 50 with 23 years of service (so you have 73 points); at age 52, you’ll have
       75 points,

      

      
	
  Your service is frozen on your termination date, but your age continues to increase points
       until you reach 75 and

      

      
	
  The average of your highest consecutive 60 months of pay is $60,000.

	 Verizon
        Management Pension Plan 	16	 3/2002 

Calculation of annual amount of single life annuity if you begin benefits at age 55 or later

	A	  Highest average pay x  service x  1.35%
        

      $60,000 x  23 x  1.35%
    = 

    $18,630

    Calculation of annual amount of single life annuity if you begin benefits now

	B 	Number of complete months
        between projected age at 75 points and age 55 x  .25% 

      [55 - (50 + 2)] x  12
      = 36 months 

      36 months x  .25%
      = 9.0% 

	C	1 – B or 1-9.0% = 91.0%

	D 	 Age 65 single life annuity x  reduction
    factor for early retirement before age 55 

    $18,630 x  91%= 

    $16,953

	E	  Number of complete months
        between benefit commencement date and 75 points x  .6%
        

        (75 points - 73 points = 2 points) x  12
        = 24 months 

        24
        months x  .6%
        = 14.4%
	 	 
	F	1 – E or 1-14.4%
    = 85.6%
	 	 
	G	  Single life annuity reduced
        for benefit commencement before 75 points [D x  F]
    =

    $14,512

Calculation
  of annual amount of single life annuity if you begin at age 52

	H	  Number of completed months
        between deferred age and 55 x  .25%
        

        (55 - 52) x  12 = 36 months 

        36 months x  .25%
        = 9% 
	I 	1 - H or 1-9.0% = 91%

	J 	 Age 55 and up single life annuity x  reduction
        factor for early retirement before age 55 [A x  I]
    =

    $16,953

If you’re
        eligible for the former Bell Atlantic modified former pension formula
        (MFPF)

  You may be eligible for an MFPF benefit if you’re a former Bell Atlantic employee, you had at least 15 years of net credited service as of September 1, 1999 and you had a period of active participation in one of
Verizon’s Bell Atlantic cash balance plans. If you’re eligible for the MFPF benefit, you will receive the greatest of your cash balance formula benefit, the Highest Average Pay benefit or an MFPF benefit generally frozen as of December 31,
2001. See “The modified former pension formula benefit” on page 48 for more information.

	 Verizon
        Management Pension Plan 	17 	 3/2002 

 

  If you’re eligible for the former
GTE social security integration formula

  If
you’re a former GTE employee who had an
  accrued benefit under a management pension plan maintained by a former GTE
  company as of December 31, 2001, you will also accrue benefits under the alternative
  social security integration formula until May 31, 2004. This formula calculates
a single life annuity payable on your normal retirement date as follows:

1.15% x your
    average annual compensation (see page
    11) up to the social security integration
  level

    + 

  1.45% x your
  average annual compensation over the social security integration level 

  x  

    your years of pension accrual service (see page 35) through May 31, 2004
    

  However, for employees for whom the social security integration formula provides the highest benefit on May 31, 2004, the plan provides for benefit increases after May 31, 2004. The single life annuity calculated for you as of May
31, 2004 under the social security integration formula will be increased by adding to it a single life annuity benefit calculated under the Highest Average Pay formula based on your service as an eligible employee after May 31, 2004 only.

  Social security integration level

  This is the 35-year average of annual social security taxable wage bases for a worker

  reaching age 65 in the calendar year you terminate employment with the company and all Verizon affiliates, rounded to the next lower multiple of $100. The wage bases are the highest amounts the government uses each year to
determine social security taxes. The social security integration level generally changes each year as the social security wage base increases. Once you retire or leave the company and all Verizon affiliates with a right to a pension benefit under
the social security integration formula, future increases in the social security integration level will not affect your pension benefit calculated under this formula, whether or not payments have started.

 

 

 
 

	 Verizon
        Management Pension Plan 	18	 3/2002 

  Determining social security integration formula benefits at earlier payment ages

  The social security integration formula, like the Highest Average Pay formula, provides a single life annuity benefit payable beginning on your normal retirement date. The single life annuity benefit under the social security
integration formula is adjusted for payment before normal retirement date in the same manner as the Highest Average Pay formula benefit is adjusted for early payment.

  Reductions for benefits under other pension plans

  Your plan benefit may be reduced to take into account benefits you have earned under other pension plans in certain situations. For example, your pension benefit under the plan will generally be reduced by pension benefits that
you have earned:

	
  Under a pension plan of another Verizon affiliate for a period of service for which you also earned benefits under the plan;

  

  
	
  Under the plan, if those benefits were transferred to a pension plan maintained by another company as the result of a corporate divestiture prior to your being rehired by the company; or

  

  
	
  Under the plan of a portability company, if you received a lump-sum payment of those benefits and have agreed that your plan benefit will be reduced for those benefits as a condition for having prior service recognized under the portability rules (see page 45).

  Effect of in-service payment

  If you are a former GTE employee who has received an in-service payment of your pension from the plan or a former GTE management pension plan under the early payment program (see page
23), your benefit at your later termination of employment under the Highest Average Pay formula, the cash balance benefit formula or the former GTE social security integration formula will be calculated based only on
the benefits you earn from your employment as an eligible employee after the December 31 with respect to which your early payment is determined.

  Other special rules that may apply

  If you were previously a participant in the GTE Sylvania Pension Plan for Salaried

  Employees, the Contel System Pension Plan or the Contel Savings Plan, certain special rules may apply to you. Please contact the Verizon Benefits Center (see page 2) if you would like more information.

  Which formula will be best for
  you?|

  The
  Highest Average Pay formula keeps growing as you continue to work, using a
  different calculation method starting in 2008. In addition, you’ll continue
  to receive pay and interest credits under the cash balance formula. You may
  also be eligible to have benefits calculated under the former Bell Atlantic
  MFPF or the former GTE social security integration formula. When you leave
  the company and all Verizon affiliates, you will receive the benefit payable
  under the formula that provides the highest benefit to you.

	 Verizon
        Management Pension Plan 	19	 3/2002 

 

  Generally speaking, the formula that will provide the highest benefit for you will depend on when you leave the company:

	 If you meet the
            Rule of 75 (see page
            13) when  you leave the
            company... 	 The Highest Average Pay
        formula (as modified)  will likely provide the
        highest benefit for you 
	 If you don’t
            meet the Rule of 75 when you  leave the company... 	 The cash balance formula
        will likely provide the  highest benefit for you 

  In every case, your benefits will be calculated under all the formulas available to you when you apply for retirement. You will see the results of the benefit calculations, and you will receive the highest benefit available to
you.

  Federal limits on benefit amounts

  The Section 415 limits of the Internal Revenue Code govern the maximum amount that can be paid to a participant from qualified pension plans. If you are affected by these limits, you will be notified.

  Keeping track of your pension

  You can monitor your pension online through Your Benefits Resources Web site (see page 2 for
  the eWeb and Internet URLs) or by calling the Verizon Benefits Center’s
  interactive voice response (IVR) system or speaking with a Verizon Benefits
  Center representative (see page 2 for the telephone number). Because you can view your cash balance account, model your Highest Average Pay benefit online and request a printed statement at any time, you will not receive quarterly statements showing your pension value.
Use the Web site or call the Verizon Benefits Center to use these resources:

 

	 Verizon
        Management Pension Plan 	20	 3/2002 

	
      What you can do
                 	
      Your Benefits
          
      Resources Web
          
      site
          	
      The Verizon
          
      Benefits
          
      Center IVR
          
      system
          	
      Verizon
          
      Benefits Center
          
      representatives
                 
	
      Learn your current cash balance formula
      balance
        	
      X
        	
      X
        	
      X
        
	
      Model the value of your Highest Average
      Pay benefit
        	
      X
        	
      Only if it is
      highest
      available
        	
      X
        
	
      Print or request a statement of your pension
      value  	
      X
        	
      X
        	
      X
        
	 Learn the value of your MFPF or social security
    integration benefit	
      Only if it is more
      valuable than the
      cash balance
      formula
        	
      Only if it is the
      highest benefit
      available to
      you
        	
      X
        
	
      Find out if you’re vested
        	
      X
        	
      X
        	
      X
        
	
      Request a projection of your estimated
      pension benefit as a lump sum or an
      annuity
        	
      X
        	
      X
        	
      X
        
	
      Request a distribution package when
      you’re ready to receive your pension
      benefit
        	
      X
        	
      Not available
        	
      X
        
	
      Request a password (you’ll use the same
      password for all your transactions through
      the Verizon Benefits Center)
        	
      X
        	
      X
        	
      X
        
	
      Request a beneficiary designation form
        	
      X
        	
      Not available
        	
      X
        
	
      Estimate your future benefit
        	
      X
        	
      X
        	
      X
        

 

	 Verizon
        Management Pension Plan 	21	 3/2002 

  How benefits are paid

  Payment of your benefit

 

  You’re eligible to receive the pension you
  earn under the plan if you are vested when you leave the company and all Verizon
affiliates.

Vesting

You’re
    vested in your pension after you complete five years of vesting service (see page 35) or if you are employed by the company or a Verizon
affiliate when you reach normal retirement age. If you are a former Bell Atlantic employee, you will generally reach normal retirement age at age 65. If you are a former GTE employee or a new employee, you will reach normal retirement age on the
later of:

	
  Your 65th birthday or

  

  
	
  The earlier of the date you complete five years of vesting service or your fifth anniversary of plan participation.

  Once vested, you own, or have a nonforfeitable right to, a pension based on the formula that provides the highest value to you. If you leave the company and all Verizon affiliates or die before you become vested, you will forfeit
your entire pension benefit.

  When pension payments can start

  If you are vested, you may generally start your pension on a pension commencement date that is the first day of any month after you leave the company and all Verizon affiliates. However, if you continue to work after your normal
retirement age and you have a vested pension benefit, payments will begin on January 1 of the year following the year you reach age 70-1/2, even if you are still working.

  When you leave the company:

	
	

	
      If the present value of the highest pension amount available to you under all formulas that apply is $3,500 or less, you will receive a lump-sum cashout as soon as possible after you leave. You may not elect a later pension
commencement date.       
	 
	
	

	
      If the present value of your pension is greater than $3,500, you will need to choose whether to:       
	 
	 	
—	
      Receive your pension immediately as a lump sum,        
	 
	 	
—	
      Begin receiving your pension immediately as a monthly annuity (any one of several types of annuities may be elected) or a combination annuity and lump-sum payment or  
	 
	 	
—	
      Defer payment of your pension to any later date, up to your normal retirement date.    
	 

	 Verizon
        Management Pension Plan 	22	 3/2002 

 

  If you choose to defer payment, your benefit under the cash balance formula will continue to receive interest credits until you receive payment. The value of the single life annuity payable at your normal retirement date under the
Highest Average Pay formula (or any other annuity formula) will not change, but your payout may vary depending on your age and service at termination, the date you begin benefits and the form of payment you select. Fluctuating interest rates also
will change the amount of the annuity payable under the cash balance formula and the lump-sum value of your benefit under the Highest Average Pay formula (or any other annuity formula).

  In-service payment option

  If you are a former GTE employee who was eligible for a one-time in-service payment under the early payment program of a former GTE management pension plan, you may take an in-service payment under the plan if you have not
previously done so. Please refer to the materials you were provided when the early payment program was originally introduced or call the Verizon Benefits Center for more information.

  Requesting your pension payment

  When
  you’re ready to receive your pension,
  go to Your Benefits Resources Web site or call the Verizon Benefits Center and speak with a representative to request a
pension distribution package. This package contains an estimate of your benefit under all the formulas available to you and shows the end results of the calculations, including the one that will provide the highest value to you, as well as the forms
you need to complete.

  The package is valid for three months from the
  date you receive it. If you don’t return the forms in the package within
  three months, you must request a new package if you want to receive payment,
and you will have to choose another pension commencement date.

  Once the Verizon Benefits Center is notified of
  your termination date from payroll, payment will be made as soon as administratively
  possible after you request it – normally within 60 days. If you elect
  to receive payment as a lump sum and your cash balance amount is higher, interest
  on your cash balance lump-sum amount will be calculated through the end of
  the month prior to the actual payment date. If the Highest Average Pay formula
  (or any other annuity formula) is higher, your lump sum will be calculated
  as of your pension commencement date, and if the actual payment is made after
  your pension commencement date, you will receive interest from your pension
  commencement date. If you elect to receive an annuity, your payment will be
  retroactive to your pension commencement date. You will not receive interest
  on the annuity payment as long as you receive payment within three months of
your pension commencement date.

	 Verizon
        Management Pension Plan 	23	 3/2002 

 

  Forms of payment at a glance

  The following forms of payment are available under all formulas provided through the plan:

	
      Form of payment
          	
      Frequency of
          
      

      payment
          	
      Recipient
          	
      Payment amount details
          
	
      Standard forms
          
      of payment

      

          
      If you are single
          
      

      Single life annuity        	
      Monthly
        	
      You
        	
      Payable for your lifetime only
        
	
      If you are married
          
      

      Joint and 50%
      

      surviving spouse
      

      annuity    	
      

      Monthly
        	
      

      You and your
      

      surviving spouse
        	
      

      Payable for your lifetime and to
      your surviving spouse after your
      death; your spouse (if surviving)
      receives 50% of the monthly
      amount you were receiving
        
	
      Optional forms of
          
      

      payment 1
          
      

      Lump-sum
      payment        	
      Once
        	
      You
        	
      Payment of your entire pension in a
      single sum
        
	
      Single life annuity
        	
      Monthly
        	
      You
        	
      Payable for your lifetime only
        
	
      Joint and 33-1/3%,
      

      50%, 66-2/3% or
      

      100% surviving
      

      beneficiary
      annuity
        	
      Monthly
        	
      You and your
      designated
      beneficiary
        	
      Payable for your lifetime and after
      your death; your beneficiary (if
      surviving) receives the percentage
      you elected of the monthly amount
      you were receiving
        
	
      Pop-up joint and
      

      50%, 75% or
      

      100% survivor
      

      annuity
        	
      Monthly
        	
      You and your
      designated
      beneficiary
        	
      Payable for your lifetime and after
      your death, your beneficiary (if
      surviving) receives the percentage
      you elected of the monthly amount
      you were receiving; if you outlive
      your beneficiary, your benefit
      increases to the monthly amount
      provided under the single life
      annuity option if notice of your
      beneficiary’s death is timely (see
      page 26)
        
	
      5- or 10-year
      

      period certain 

      and
      life annuities
        	
      Monthly
        	
      You and your
      designated
      beneficiary
        	
      Payable for your lifetime and after
      your death if you die before
      receiving 5 or 10 years of payments,
      depending on which you elect,
      your beneficiary will receive any
      remaining payments for the 5- or
      10-year period
        

 

	 Verizon
        Management Pension Plan 	24	 3/2002 

 

	 Form
            of payment 	 Frequency
            of  

      payment 	 Recipient 	 Payment
            amount details 
	Combination 

    annuity and 

    lump-sum 

    payment 	Once for the

      lump-sum

      portion; monthly

      for the annuity

    portion 	You and your

      designated

    beneficiary 	Payable in a combination of any

      annuity option plus a lump-sum

      payment, with the lump-sum

      amount to be specified in

      increments of 10% but limited to

    50% of the total value 

1 If
  you are married when you start your pension benefit payment, you will need
  your spouse’s written, notarized consent to elect any form of payment
  other than the standard form (joint and 50% surviving spouse annuity) or a
joint and 66-2/3% or 100% surviving spouse annuity.

  Standard forms of payment

  Federal law requires the plan to pay your pension benefit in the standard form of payment, unless you choose an optional form of payment. The standard forms are as follows:

	
  If you’re not married, a single life annuity. With a single life annuity, you receive monthly payments for your lifetime only. When you die, payments end.

  

  
	
  If you’re married, a joint and 50% surviving spouse annuity. With a joint and 50% surviving spouse annuity, you receive reduced monthly payments for your lifetime. If
your spouse outlives you, he or she will receive monthly benefit payments, beginning with your death, for the rest of his or her lifetime equal to 50% of the amount you were receiving.

  Optional forms of payment

  The
  plan also offers several optional forms of payment. The different payment options
  provide equivalent pension benefit value. However, lump-sum amounts will vary
  based on fluctuations in interest rates and your age at payment. Annuity amounts
  will vary based on the option you select, interest rates and your age and your
  spouse’s or designated beneficiary’s age. If you’re
  married, your spouse must give written, notarized consent to any optional form
of payment other than a joint and 66-2/3% or 100% surviving spouse annuity.

  Alternately, you can request distribution of your
  pension benefits in more than one form – a lump sum and one of the annuity
  alternatives. Each of these alternative forms of distribution is described
in greater detail below.

  Lump-sum payment

  With a lump-sum payment, you receive payment of your entire accrued benefit in a single payment. The amount payable to you in a lump-sum payment will equal the greatest of:

	
  The amount of your cash balance account as of your pension commencement date, plus any unconverted annuity benefit (see page 11)
  converted to a lump sum using the plan’s actuarial factors.

  

  
	
  Your Highest Average Pay formula benefit, converted
  to a lump sum using the plan’s actuarial factors.

  	 Verizon
          Management Pension Plan 	25	 3/2002 

	
  Your benefit (if any) under the MFPF or former GTE social security integration formula, converted
  to a lump sum using the plan’s actuarial factors.

  See page 29 for
  more information on the plan’s actuarial factors for converting single
life annuity benefits to lump sums.

  Annuity forms of payment

  With an annuity payment, you receive monthly payments for your life and, depending on the form of payment you elect, your beneficiary may receive payments for a period of time after you die. The amount payable to you in an annuity
form of payment will be based on the largest single life annuity payable to you under any applicable plan formula as of your pension commencement date. (For a description of the benefits payable in the form of a single life annuity from your
unconverted annuity benefit or under the Highest Average Pay formula, the social security integration formula or the MFPF, see pages 11, 12, 18, and 48, respectively. See page 28 for details regarding the conversion of your cash
balance account to a single life annuity benefit.)

  Joint and 33-1/3%, 50%, 66-2/3% or 100% surviving beneficiary annuity

  With
  a joint and surviving beneficiary annuity, you receive monthly payments for
  your lifetime that are less than the single life annuity payments you are otherwise
  entitled to receive. The amount of the reduction depends on whether you elect
  a 33-1/3%, 50%, 66-2/3% or 100% annuity for your beneficiary and the ages of
  you and your beneficiary. The higher the percentage you select, the more your
  annuity will be reduced – in
  order to provide a larger benefit for your beneficiary after your death. You
choose an individual beneficiary to receive benefits after your death.

  If your beneficiary is living when you die, he or she will receive monthly benefit payments for the rest of his or her lifetime equal to the percentage you elected based on the amount you were receiving. If your beneficiary dies
before you, benefits end at your death.

  Limits on survivor annuities

  If you designate a beneficiary other than your spouse and you are more than 24 years older than your beneficiary, you may not elect a joint and 66-2/3% or joint and 100% survivor annuity.

  If you designate a beneficiary other than your spouse and you are more than 10 years older than your beneficiary, you may not elect a joint and 100% survivor annuity.

  Pop-up joint and 50%, 75% or 100% survivor annuity

  With
  a pop-up joint and survivor annuity, you receive monthly payments for your
  lifetime that are less than the single life annuity payments you are otherwise
  entitled to receive. The amount of the reduction depends on whether you elect
  a 50%, 75% or 100% annuity for your beneficiary and the ages of you and your
  beneficiary. The higher the percentage you select, the more your annuity will
  be reduced – in order to provide a larger benefit
for your beneficiary after your death.

	 Verizon
        Management Pension Plan 	26	 3/2002 

 

  You may choose your spouse or another beneficiary. If your beneficiary outlives you, he or she will receive monthly benefit payments for the rest of his or her lifetime equal to 50%, 75% or 100% of the amount you were
receiving.

  If your beneficiary dies before you, your monthly
  payments will be restored (pop up) to the higher level of a single life annuity.
  Because this benefit is more valuable than the joint and 50% or 100% survivor
  annuities without the pop-up feature, your monthly annuity is lower up to your
  beneficiary’s death. The increase to a single life annuity amount will generally be effective in the month following your beneficiary’s death. However, if you notify the benefits
administrator of your beneficiary’s death more than one year after death
occurs, the increase will apply only to months after your notification is received.

  Limits on pop-up annuities

  If you designate a beneficiary other than your spouse and you are more than 19 years older than your beneficiary, you may not elect a pop-up joint and 75% or joint and 100% survivor annuity.

  If you designate a beneficiary other than your spouse and you are more than 10 years older than your beneficiary, you may not elect a pop-up joint and 100% survivor annuity.

  Period certain and life annuities

  Five- or 10-year period certain and life annuities pay you a fixed monthly pension for your lifetime, and guarantee that if you die before you receive 5 or 10 years of payments (depending on which you elect), any remaining
payments for the 5- or 10-year period will be made to your beneficiary.

  The annuity amount is reduced because of the 5-
  or 10-year guarantee. This reduction stays in effect for as long as the annuity
is paid – either to you or to your beneficiary.

  Combination annuity and lump-sum payment

  This option gives you the benefit of both types of payments. You take a portion of your accrued benefit as a lump-sum payment and receive the remainder in any of the standard or optional annuity payment forms. You may choose any
of the distribution combinations of lump sum and annuity shown in the chart below:

	
      Percentage of account paid as:
          
	
      Lump-sum
          
      

      payment
          	
      Monthly annuity
          
	
      10%
        	
      90%
        
	
      20%
        	
      80%
        
	
      30%
        	
      70%
        
	
      40%
        	
      60%
        
	
      50%
        	
      50%
        

 

	 Verizon
        Management Pension Plan 	27	 3/2002 

  Both the lump-sum portion and the annuity portion of the accrued benefit must have the same pension commencement date. See page 25 for
  more on receiving a lump-sum payment. Be sure to read “How taxes affect your pension” on page 30 and talk to your tax advisor to find out
the implications of lump-sum payments.

  Other forms of payment, as provided for in prior plans, may be available for any portion of your benefit that has been transferred from a pension plan of another Verizon affiliate, an acquired company or an interchange company.
Call the Verizon Benefits Center for more information if you believe you were in one of these plans.

  Estimating the amount of your annuity

  For the cash balance formula, your online statement shows your benefit as a lump sum as it grows over the years. You can also use the Web site to find out what that converts to as a monthly annuity payment, or you can call the
Verizon Benefits Center and use the IVR or speak with a representative for a projection of your account.

  The annuity amount payable based on your cash balance account can vary up or down based on your age and the interest rates in effect when you start to receive payments. Once you begin receiving your annuity, subsequent changes to
the quarterly interest rate do not affect the amount of your monthly payment.

  Your pension benefit under the Highest Average Pay formula is shown as a single life annuity, but you can also model other forms of payment online.

  How your cash balance account is converted to an annuity

  Your
  cash balance account is first converted to a single life annuity based on your
  age as of your pension commencement date, your assumed life expectancy and
  an interest rate equal to the rate used under the Internal Revenue Code to
  determine the present value of pension benefits (the “IRC Rate”).
  The IRC Rate is currently the average annual yield on 30-year Treasury bonds.
  For plan purposes, the IRC Rate used is the rate for the second month before
  the calendar quarter in which your pension commencement date occurs (or, if
  your pension commencement date is the first day of a calendar quarter, the
  rate for the second month before the prior quarter is used). This interest
  rate is updated quarterly in the same way the interest credit rate is updated.

  The amount of a single life annuity will vary based on your age. The younger you are, the smaller your monthly payment will be because the value of your cash balance account is spread out over your longer life expectancy. The
amount will also vary based on the interest rate in effect when you choose to begin your payments. A higher interest rate means a larger monthly payment for you. A lower interest rate means a relatively smaller monthly payment.

	 Verizon
        Management Pension Plan 	28	 3/2002 

 

  Example: single life annuity

  Bill and Maria each have a cash balance formula benefit of $200,000, and both plan to retire. Bill is age 58, and Maria is age 52. The following chart shows how their monthly single life annuity amounts vary based on age and the
interest rate.

	
      Participant
    	 

        	 
        Monthly payment if interest rate
        is:                      
        
	
      Age
          	
      5%
          	
      6%
          	
      7%
          
	
      Bill
        	
      58
        	
      $1,226.68
        	
      $1,349.04
        	
      $1,474.13
        
	
      Maria
        	
      52
        	
      $1,107.84
        	
      $1,233.10
        	
      $1,361.46
        

  Example: joint and 50% surviving spouse annuity

  Albert
  and Edith are both age 60, and both have account balances that provide a $2,500
  monthly single life annuity. However, their spouses aren’t the same age. The following chart shows the values of the joint and 50%
surviving spouse annuity, based on the different ages of their spouses. These conversion factors are based on the plan’s
actuarial tables and do not change with the quarterly interest rate changes.
The same conversion factor tables are used for all beneficiaries.

  Other beneficiaries (see “Naming a beneficiary for your preretirement death benefit” on page 34) are eligible.

	     
      Participant
      	
      Ages
          	 

        	
      Conversion

          
      factor
          	
      Monthly amount payable to:
          
	   
        Participant
        	   
        Spouse
        	
      Single
          
      life
          
      annuity
          	
      Joint and 50%
          
      

      surviving spouse
          
      

      annuity
          	   
        Participant
        	
      Spouse (after
          
      

      participant’s
          
      

      death)
          
	
      Edith
        	
      60
        	
      65
        	
      $2,500.00
        	
      .9620
        	
      $2,405.00
        	
      $1,202.50
        
	
      Albert
        	
      60
        	
      49
        	
      $2,500.00
        	
      .9280
        	
      $2,320.00
        	
      $1,160.00
        

  Calculating a lump-sum benefit from the Highest Average Pay formula (or other annuity formula)

  Under the Highest Average Pay formula, your benefit is calculated as a single life annuity. The lump-sum value is calculated by multiplying the single life annuity benefit payable beginning on your pension commencement date by an
actuarial factor. Lump-sum actuarial factors are determined based on a combination of interest rates and mortality assumptions. The Highest Average Pay formula lump sum is calculated using whichever of the following factors results in the largest
lump sum:

	
  120% of the Pension Benefit Guaranty Corporation (PBGC) interest rate, when the resulting lump sum is over $25,000, or 100% of the PBGC interest rate if the lump sum is $25,000
or less, using the Plan Mortality Table. The PBGC interest rate is determined 90 days prior to the pension commencement date. These PBGC rates change monthly.

  	 Verizon
          Management Pension Plan 	29	 3/2002 

	
  10-year Treasury bond rate. The 10-year Treasury bond rate is determined by using a six-month average as reported for the six-month averaging period beginning 12 months before
the pension commencement date. The factors for the 10-year Treasury bond rate also use the Plan Mortality Table. The 10-year Treasury bond rate changes monthly.

	
  30-year Treasury bond rate (or current IRC Rate (see page 10)) using the GATT Mortality Table. For this factor, the IRC rate is
determined five months prior to the pension commencement date. This IRC rate changes monthly.

	
  30-year Treasury bond rate (or current IRC Rate) using the GATT Mortality Table. For this factor, the IRC Rate is determined two months before the calendar quarter in which the pension commencement date occurs. (However, if the pension commencement date is the first day of a calendar quarter, the interest rate that would apply for the prior quarter is used.)
This is the Verizon pension plan official GATT rate and determines the minimum lump sum that may be paid under applicable law. This GATT rate changes quarterly.

  If applicable, your single life annuity benefit under the MFPF, the social security integration formula or your unconverted annuity benefit transferred from another pension plan are also converted to a lump sum using the factors
indicated above.

  Converting a single life annuity to another form of annuity payment

  To
  convert a single life annuity to another annuity form (such as the joint and
  50% surviving spouse annuity), the single life annuity amount is multiplied
  by a conversion factor based on your age and the age of your spouse at the
  end of the calendar year in which your payments begin. This adjustment will
  reduce your monthly payment because the value of your benefit is spread out
  over the life expectancies of both you and your spouse. Conversion factors
  are based on the plan’s actuarial tables and do not
  change with the quarterly interest rate changes. The same conversion factor
tables are used for all beneficiaries.

  How taxes affect your pension

  You
  don’t pay federal income taxes on pay credits or interest credits added to your cash balance account. You also don’t pay taxes on your Highest Average Pay formula benefit (or any other annuity formula benefit) as it
grows over the years. When your pension is distributed, you will be required to pay taxes on it at the tax rate in effect at the time –unless you take a lump-sum payment and roll it over (see “Direct rollovers” on page 31).

  Your pension payments will be taxed when you receive them. Tax rules for a lump-sum payout in particular can be complicated, and you are advised to discuss your options with a tax advisor before you decide to receive a payout. Tax
laws regarding company-sponsored plans have changed significantly in the past few years and may very well change again. Make your distribution decision based on the most current tax information.

  Ten percent penalty tax

  The Internal Revenue Service assesses a 10% penalty tax on any payment you receive from the plan before you are age 59-1/2. This tax is in addition to ordinary income taxes on the money.

	 Verizon
        Management Pension Plan 	30	 3/2002 

 

  The penalty tax generally does not apply in the following situations:

	
  You leave the company and all Verizon affiliates in the year you turn age 55 or later,

  

  
	
  You are disabled or die before receiving payment,

  

  
	
  The payment is used to pay tax-deductible medical expenses over 7.5% of your adjusted gross income,

  

  
	
  The payment is required by a QDRO or

  

  
	
  You receive all or a portion of your pension as an annuity (the monthly payments are not subject to the 10% penalty tax).

  You can defer ordinary income tax and avoid the
  10% penalty tax if you take a lump-sum distribution and roll over your pension
(see “Direct rollovers” below).

  Direct rollovers

  If you take a full or partial lump-sum distribution, the plan is generally required to withhold 20% of your distribution. You can avoid this withholding if you make a direct rollover of the lump-sum payment to the Verizon Savings
Plan for Management Employees, a traditional individual retirement account (IRA) or an eligible employer plan. To make a direct rollover, you must provide the Verizon Benefits Center with specific information about the receiving plan or the
individual retirement account (IRA) before a payment can be made.

  Note: You may roll over your pension lump-sum benefit into the Verizon Savings Plan for Management Employees as long as the rollover is completed before the first anniversary of your termination or
retirement date. After that, the savings plan cannot accept rollovers from the pension plan.

  Participant rollovers

  This section provides important information about the disadvantages of electing a participant distribution followed by a rollover instead of a direct rollover. If you elect to receive your lump-sum benefit directly, and then roll
all or part of the payment into an eligible employer plan or a traditional IRA, this is a participant rollover.

  To avoid taxes penalties, you must generally make a participant rollover within 60 days of receipt of the payment. Also, if you elect this option instead of the direct rollover option, the plan must
still withhold 20% for federal income taxes – despite the fact that you’ll
owe no immediate taxes on the amount rolled over.

  To continue postponing all taxes when you elect a participant rollover, you must roll over the entire lump-sum distribution, including the 20% the company had to withhold
for taxes. You must make up this 20% shortfall with your own money. Otherwise, you will be rolling over only 80% of your distribution, and taxes will become due on the remaining 20%.

	 Verizon
        Management Pension Plan 	31	 3/2002 

  Annuity or installment payments for 10 or more years

  Unless you elect no withholding, taxes will be withheld from your distribution if you receive:

	
  Monthly annuity payments or

  

  
	
  Distributions after age 70-1/2 while you are working.

  The withholding rate is determined based on the withholding election the company has on file for you. If the company does not have withholding information for you, the taxes will be based on the rate for married individuals with
three exemptions.

  If you elect not to have withholding apply, or even if taxes are withheld, you may still owe taxes on the payments. You are responsible for payment of any taxes associated with payments from the plan.

	 Verizon
        Management Pension Plan 	32	 3/2002 

 

  If you die before your pension commencement date

 

  If you’re vested and you die before your pension
  commencement date, your beneficiary (see page 34) will receive a death benefit. The amount of the
death benefit will be based on the greater of the following:

	
  The combined value of your cash balance account and any unconverted annuity benefit transferred from another plan or

  

  
	
  The value of the 50% survivor benefit determined based on the Highest Average Pay formula benefit as if you had terminated employment on the date of your death (or actual termination, if earlier), survived and elected payment in the form of a qualified joint and 50%
  surviving spouse annuity beginning on the beneficiary’s pension commencement
  date and died on the same day. If you die while employed by a Verizon affiliate, no reduction will be applied for payment of the benefit to a spouse or beneficiary prior to your normal retirement date.

  Note: If you are eligible for a greater benefit under either the MFPF or the social security integration formula, the 50% survivor benefit will be based on the benefit from that formula instead of
the Highest Average Pay formula benefit. Factors for converting the cash balance account to an annuity and for converting single life annuities to lump sums are the same as those applied to determine benefits payable to participants.

  If your beneficiary is an individual, the beneficiary’s
  actual age will be used to determine the amount of the death benefit. If there
  is more than one beneficiary, the age of the oldest beneficiary will be used.
  If the beneficiary is not an individual, the beneficiary will be assumed to
be the same age as the participant.

  Form and timing of payment for preretirement death benefit

  If your death benefit has a lump-sum value of $3,500 or less, it will be paid as an immediate lump sum to your beneficiary or beneficiaries. If your death benefit has a lump-sum value of more than $3,500, it will be paid as
follows:

	
  If your beneficiary is your spouse, he or she may elect to receive payment immediately after your death or defer payment until a later date. Payment may not be deferred, however,
later than your normal retirement date (see page 22). Your spouse can receive this benefit as a lump sum or a single life annuity.

	
  If you elect a non-spouse beneficiary, he or she will receive an immediate benefit as a lump sum or a single life annuity. Payment cannot be deferred. If the non-spouse beneficiary makes no election, payment will be made in a lump sum.

  	 Verizon
          Management Pension Plan 	33 	 3/2002 

	
  If you elect multiple beneficiaries – or your beneficiary is your estate or trust – the
  benefit will be paid as an immediate lump-sum payment. If you elect multiple beneficiaries, the
  benefit will be divided in equal portions among your beneficiaries.

  Payment of the death benefit will begin as soon as administratively possible after all necessary forms have been received. Your spouse or beneficiary should call the Verizon Benefits Center to speak with a representative who will
send the forms.

  Naming a beneficiary for your preretirement death benefit

  Your beneficiary receives a death benefit from the plan if you die before your pension commencement date. You may name multiple beneficiaries under the plan. However, there are rules about naming a beneficiary:

	
	

	If you’re not married, you may
            name anyone as your beneficiary. However, if you name a minor as your beneficiary,
            a guardian or an administrator must be appointed for the child before
            payment is made. If you don’t name a beneficiary, or if your beneficiary
            is not living at the time of your death, any death benefit will be paid
            to your estate. If you get married, your spouse automatically replaces any
      previously named beneficiary. 
	 
	
	

	
      If you’re married, your spouse must be your beneficiary for any death benefit, unless:       
	 
	 	—	
    Your spouse gives written, notarized irrevocable consent to another beneficiary on a  beneficiary designation form (see “Changing
  your beneficiary” below
  for information on how to get a beneficiary designation form), 
	 
	 	—	
  Your spouse cannot be located to give consent and
  the plan administrator approves waiving spousal consent,       
	 
	 	—	
  An alternate payee is named as the spouse under
  a qualified domestic relations order (QDRO) or 
	 
	 	—	
  You have a court order showing that you have been
  abandoned or legally separated.        

  If you name a beneficiary other than your spouse (with spousal consent) before you reach age 35, your election will become invalid on January 1 of the year you reach age 35. Unless you complete a new beneficiary designation form
(with spousal consent) at that time, your spouse will become your beneficiary. Any designation of your spouse as a beneficiary made before your pension commencement date will automatically become invalid upon your divorce (except as provided in a
QDRO).

  Changing your beneficiary

  You
  may change your beneficiary at any time. However, if you’re married and
  change to a beneficiary other than your spouse, your spouse must give consent,
  as described above. Request a form online through Your Benefits Resources Web site or call the Verizon Benefits Center and follow the IVR system directions to request a beneficiary form.

	 Verizon
        Management Pension Plan 	34 	 3/2002 

 

  How service is counted

  Details about service

 

  This section describes current service rules. Rules in effect for prior periods may affect how your service is counted for those prior periods. Your service may also be affected by your disability (see page 38), your transfer between Verizon affiliates (see page 42), the mandatory portability rules (see
page 45) or a break in service (see page 39).

  Types of service

  For
  the purposes of the plan, there are three types of service: vesting service,
  net credited service and pension accrual service. All types of service are
  counted in years, months and days. If you’re
  a former GTE employee and you cash out your banked vacation, that vacation
time will not be counted for any of the three types of service.

	
      Type of service
          	
      How it’s used
          
	
      Vesting service
        	
      	Determines whether you are eligible for (vested in) your benefit under
          the plan
              

	
      Net credited service
        	
          	Determines your points used to calculate pay credits under the cash
                balance formula
                
	Determines your points for the Rule of 75 or the Rule of 73
                  
	Determines whether you have sufficient service to qualify for an
              unreduced disability pension
                    
	Determines your eligibility to participate in and receive benefits from
              many other Verizon benefit plans
                                  

      
	
      Pension accrual
      service
        	
      	Used to calculate the Highest Average Pay formula benefit and the social
          security integration formula benefit for eligible participants
              

  Vesting service

  Your vesting service is equal to the sum of the vesting service you had earned under a former GTE or former Bell Atlantic pension plan as of December 31, 2001, plus the vesting service you earn under new service crediting rules
effective in 2002. Under the new rules, you start earning vesting service on the later of January 1, 2002 or your date of hire, and service accumulates in years, months and days continuously throughout your employment with the company and other
Verizon affiliates, whether as a salaried or hourly employee.

	 Verizon
        Management Pension Plan 	35 	 3/2002 

 

  Vesting service credit continues if you have a job change from one Verizon affiliate to another. Vesting service credit ends on your separation from service date. You have a separation from service date when the earlier of the
following dates occurs:

	
  You leave the company and all Verizon affiliates for any reason.

  

  
	
  You are absent on leave for one continuous year, unless a longer period applies for your leave of absence according to company policy. (You will not be treated as absent for any period that you are receiving short-term disability benefits from the company.)

  Note that your years of vesting service can be affected by a leave of absence of more than one year, a break in service (see page 39) or a job change from
a Verizon affiliate to a Verizon company where Verizon has less than 80% ownership. You may also continue to earn vesting service during a disability that continues after your short-term disability benefits end (see page 38).

  Transition rule: Former GTE employees who have at least two years of vesting service on January 1, 2002 will have vesting service determined through December 31, 2004, based on the hours of service
rules in effect prior to 2002, if that will provide the employee with more years of vesting service. Under the hours of service rules, 45 hours of service are credited for each week in which the employee is paid for one hour. A year of vesting
service is credited if the employee is credited with at least 1,000 hours during a calendar year, but an employee cannot earn more than one year of vesting service during a calendar year.

  Net credited service (NCS)

  You earn NCS in the same way you earn vesting service starting in 2002. The NCS you earn in 2002 and later years is added to your NCS as of January 1, 2002. You are credited with NCS as of January 1, 2002 equal to your accredited
service under the former GTE management pension plan or your net credited service under the former Bell Atlantic management pension plan as of December 31, 2001, as appropriate.

  Transition rule: Former GTE employees will have NCS determined for the period January 1, 2002 through May 31, 2004, based on the hours of service rules in effect prior to 2002, if that will provide
the employee with more years and partial years of NCS for that period. Under the hours of service rules, 45 hours of service are credited for each week in which the employee is paid for one hour. A year of NCS is credited if the employee is credited
with at least 2,080 hours during a calendar year. A partial year of NCS, for a calendar year in which less than 2,080 hours is completed, is determined by dividing the hours of service completed during the year by 2,080.

  Pension accrual service

  If
  you are a former GTE employee, your pension accrual service is the sum of your “accredited service” under
  any former GTE management pension plan as of December 31, 2001, plus your service
  as an eligible employee under the new service crediting rules effective in
2002.

	 Verizon
        Management Pension Plan 	36 	 3/2002 

 

  If you are a former Bell Atlantic employee, your
  pension accrual service starts with your prior “net credited service” under
  any former Bell Atlantic cash balance plan as of December 31, 2001, adjusted
  to exclude prior service with a company that did not participate in a company
  pension plan and, if you are a participant in the Verizon Enterprises Management
  Pension Plan, to exclude your service as an hourly employee of a former Bell
  Atlantic company for which benefits remain in a Verizon hourly pension plan.
  Your service as an eligible employee under the new service crediting rules
effective in 2002 is added to your prior service.

  Under the new rules, you earn pension accrual service from the later of January 1, 2002 or the first date you are an eligible employee, and service accumulates in years, months and days continuously throughout your employment with
the company as an eligible employee. Pension accrual service credit ends on your separation from service date or the date you are no longer an eligible employee, if earlier.

  Note that your years of pension accrual service may be affected by a leave of absence of more than one year, a break in service (see page 39) or a transfer
to a position in which you are not an eligible employee (see page 42). You may also continue to earn pension accrual service during a disability that continues after your
short-term disability benefits end (see page 38).

  Transition rule: For a former GTE employee, pension accrual service determined for the period January 1, 2002 through May 31, 2004 will be based on the hours of service rules in effect prior to
2002, if that will provide the employee with more years and partial years of pension accrual service for that period. In this case, the hours of service rules are the same as those indicated above for NCS.

	 Verizon
        Management Pension Plan 	37 	 3/2002 

 

  If you become disabled

 

  If you suffer a long-term disability, you may continue to earn benefits under the plan or receive an unreduced pension:

	
  Continued service. If you have enrolled in and met the disability requirements of Verizon’s
  Long-Term Disability Income Protection Plan (the Verizon LTD Plan), you will continue to earn vesting service, net credited service and pension accrual service during the period you are receiving benefits from the Verizon LTD Plan and before you start your pension. (You are not eligible for continued service crediting if your LTD benefits are provided by the former Bell Atlantic LTD Plan.)

  

  
	
  Deemed earnings. While you are credited with service, you also will be deemed to have eligible earnings equal to your monthly base pay rate in effect immediately before
the onset of your disability. If you are paid
on a commissions basis, this “deemed” rate will be increased by the monthly average of your commissions for the 12-month period immediately before your disability began. The eligible earnings that you are deemed to receive during your disability will be the basis for pay credits to your cash balance account and
will be used to calculate your average annual compensation for purposes of the Highest Average Pay formula (and the former GTE social security integration formula, if applicable).

	
  Unreduced pension. If
  you have at least 15 years of net credited service and you’re considered disabled under the plan, the single life annuity benefit calculated for
you under the Highest Average Pay formula (or the former GTE social security integration formula, if applicable) is not reduced for payment before your normal retirement date. You are considered disabled under the plan if you are eligible to receive disability benefits under the Verizon LTD Plan (but not the former Bell Atlantic LTD Plan), or would be eligible to
receive disability benefits under the Verizon LTD Plan if you had been participating.

  	 Verizon
          Management Pension Plan 	38	 3/2002 

  If you are rehired after a break in service

 

 

  This section describes the benefits provided by the plan to participants who have a break in service and who are rehired as an employee of a Verizon affiliate on or after January 1, 2002. If you were rehired prior to January 1,
2002 after a break in service, different rules may apply. Please contact the Verizon Benefits Center (see page 2) if you would like more information on how an earlier break
in service affected your benefit.

  The following apply if you were previously employed by Verizon (including former Bell Atlantic, NYNEX and GTE companies) and are rehired as an employee of a Verizon affiliate in 2002 or later.

	
	

	
      Participation in the plan. If
      you are rehired as an eligible employee, you’re eligible to participate
    in the plan on your first day of work as an eligible employee.        
	 
	
	

	
      Vesting and net credited service. Your prior service with Bell Atlantic, NYNEX or GTE companies (if owned 80% or more) will be recognized as vesting and net credited service when you are
rehired.  
	 
	 	
—  	
      If your break in service was 12 months or less, all your prior vesting service and net credited service will be restored immediately, and you will be credited with vesting service and net credited service for the period of the
absence. 
	 
	 	
—  	
      If your break in service was greater than 12 months, all your prior vesting and net credited service will be restored, but you will not be credited with service for the
period of the absence.    
	 
	
	

	
      Pension accrual service. If,
      during your prior employment, you were an active participant in one of
      the former GTE management pension plans, one of Verizon’s Bell Atlantic cash balance plans,
one of the former Bell Atlantic’s pre-cash balance traditional pension plans or the NYNEX management pension plan, your prior service will be recognized as pension accrual service when you are rehired. However, you will not be credited with
pension accrual service for your period of absence, nor will you be credited with pension accrual service during any period you are re-employed as other than an eligible employee. In addition, you will not be credited with “deemed” service
that was credited to you under a pension enhancement program when you first retired.      
	 
	 	
  If, during your prior employment, you were an active participant in a former GTE, former Bell Atlantic or former NYNEX pension plan for hourly employees, call the Verizon Benefits Center for more information.   
	 

	 Verizon
        Management Pension Plan 	39 	 3/2002 

 

  If you had an accrued benefit but did not receive payments

  The following explains what happened to your accrued pension benefit during your break in service if your benefit was not paid to you prior to your return:

	
  Interest credits continued on your existing cash balance account, if any, during your break in service. Pay credits will begin again on the date you are rehired as an eligible employee.

  

  
	
  Your Highest Average Pay formula benefit, if any, will remain the same as it was on the day you left and will begin to grow again on the date you are rehired as an eligible employee.

  

  
	
  If you are a former GTE employee and your break began before January 1, 2002, your benefit under the former GTE management pension plan will remain the same as it was on the day
you left and will be held for you as an unconverted annuity benefit (see page 11).

	
  If you are a former Bell Atlantic employee and your break began before the relevant cash balance conversion date (December 31, 1995 for Bell Atlantic and December 31, 1997 for NYNEX), your benefit under the former Bell Atlantic or NYNEX management pension plan will remain the same as it was on the day you left and will be held as an unconverted annuity
benefit (see page 11), provided that you were vested when you left or, if you were not vested, that your break in service did not exceed five
years.

  If you return to work after receiving payments

  If
  you are rehired as an employee of a Verizon affiliate on or after January 1,
  2002 and you have previously received a pension payment or payments from one
  of the former GTE management pension plans, one of Verizon’s Bell
Atlantic cash balance plans, one of the former Bell Atlantic’s pre-cash
balance traditional pension plans or the NYNEX management pension plan:

	
  If you return to work after age 65, but before age 70-1/2, any monthly pension payments you are receiving from the plan will be suspended each month during which you
complete 40 or more hours of service or work at least eight or more days or separate work shifts.

Monthly benefit payments will resume when you terminate employment with the company and all Verizon affiliates, you work less than 40 hours or eight or more days or work shifts in a month, or you reach age 70-1/2.

	
  If you return to work before age 65, your monthly pension payments will be suspended for any month before age 65 during which you are employed. Monthly benefit
payments will resume when you terminate employment with the company and all Verizon affiliates.

If you continue to work past age 65, benefits will be suspended (and resumed) based on the rules described above for return to work after 65.

	 Verizon
        Management Pension Plan 	40	 3/2002 

 

 

	
	

	
If you are receiving monthly social security supplement payments, those payments will stop when you are rehired. When you terminate employment with the company and all Verizon affiliates, your
social security supplement payments will resume if you are then still under the age of 62. There will be no increase in these payments and no extension of the supplement period following the suspension.       
	 
	
	

	
On your second termination date, your benefits will be calculated as follows:      
	 
	 	
—  	
If you previously received your entire benefit as a lump-sum payment:        
	 
	 	 	
–  	
And you were not rehired as an eligible employee, you will receive no additional benefits from the plan.     
	 	 	
–	
And you were rehired as an eligible employee, your benefit will be based on the greater of your cash balance formula benefit earned since your rehire date or the benefit calculated under the Highest Average Pay formula reduced to
reflect the prior lump sum. If your prior lump sum was based on your prior cash balance account, your Highest Average Pay formula benefit will be reduced by the single life annuity value of your prior cash balance account increased by interest
credits since the prior distribution. If your prior lump sum was based on an annuity-based formula, your Highest Average Pay formula benefit will be reduced by the amount of the single life annuity on which your prior lump sum was
based.   
	 
	 	
—  	
If you were previously receiving your entire benefit as an annuity:  
	 
	 	 	
–  	
And you were not rehired as an eligible employee, your benefit as of your second commencement date, if not transferred to another pension plan maintained by a Verizon affiliate, will be based on the benefit you had accrued under
the plan before you were rehired, with no reduction for prior payments.  
	 	 	
–	
And you were rehired as an eligible employee, your benefit will be based on the greater of your cash balance formula benefit or your Highest Average Pay formula benefit, determined as of your second pension commencement date,
taking into account both pre-and post-break service and compensation, both pre- and post-break pay credits and interest credits since your cash balance account was established, and any unconverted annuity benefit, with no reduction for prior
payments.        
	 
	
	

	
When pension payments resume, you will be asked to make a new form of payment election (see page 23) for your entire
benefit, including any amounts earned before and after you returned to work (if not previously cashed-out). If your marital status changes, your marital status when payments resume will determine who (if anyone) will be treated as your spouse. Your
old annuity form of payment election becomes invalid on the date your benefit is suspended due to your rehire.   
	 

	 Verizon
        Management Pension Plan 	41 	 3/2002 

 

If you transfer to or from eligible employment

 

This section describes the benefits provided by the plan to an employee who, on or after January 1, 2002, becomes an eligible employee following non-eligible employment with a Verizon affiliate or who ceases to be an eligible
employee by reason of a transfer to non-eligible employment with a Verizon affiliate. If your transfer occurred before January 1, 2002, different rules may have applied.

If you were a former hourly employee in an hourly pension plan and you 

become an eligible employee under the Verizon Management Pension Plan

If
you were previously an hourly employee participating in the Verizon Pension Plan
for Mid-Atlantic Associates, the Verizon Pension Plan for New York and New England
Associates or in one of the GTE hourly pension plans – and
you were promoted on or after January 1, 2002 from that position as an hourly employee to a position as an eligible employee in the Verizon Management Pension Plan – the
pension benefit you earned as an hourly employee will be transferred to the plan.

	
	

	
If you’re a former Bell Atlantic or NYNEX employee. Your transferred hourly plan benefit will be held in the plan as an unconverted annuity benefit (see page 11). Your plan
benefit will be based on the greatest of the following benefits: 
	 
	 	
—  	
Your unconverted annuity benefit transferred from the hourly pension plan, adjusted for increases in the pension band used to determine your benefit at your promotion, plus the benefit derived from your cash balance
account, 
	 
	 	
—  	
Your unconverted annuity benefit transferred from the hourly pension plan, adjusted for increases in the pension band used to determine your benefit at promotion, plus a benefit calculated under the Highest Average Pay formula
based only on your service as an eligible employee after your promotion or       
	 
	 	
—  	
Your Highest Average Pay formula benefit, calculated using both your pension accrual service under the hourly plan from which your benefit was transferred and the pension accrual service you earn under the plan for your employment
as an eligible employee.(If you have not accepted a permanent promotion,
this calculation does not apply to you.) 
	 	 	 
	 

	 Verizon
        Management Pension Plan 	42 	 3/2002 

 

 

	
	

	
If you’re a former GTE employee. Your transferred hourly plan benefit will be held in the plan as an unconverted annuity benefit (see page
11). Your plan benefit will be based on the greatest of the following benefits:   
	 
	 	
—  	
Your unconverted annuity benefit transferred from the hourly pension plan, plus the benefit derived from your cash balance account,  
	 
	 	
—  	
Your unconverted annuity benefit transferred from the hourly pension plan, plus a benefit calculated under the Highest Average Pay formula based only on your service as an eligible employee after your promotion or        
	 
	 	
—	
Your Highest Average Pay formula benefit, calculated using both your pension accrual service under the hourly plan from which your benefit was transferred and the pension accrual service you earn under the plan for your employment
as an eligible employee. 
	 

If you were a former hourly employee in an hourly pension plan and you become an eligible employee in the Verizon Enterprises Management Pension Plan

If
you were previously an hourly employee participating in either the Verizon Pension
Plan for Mid-Atlantic Associates or the Verizon Pension Plan for New York and
New England Associates – and you were promoted on or after
January 1, 2002 from that position as an hourly employee to a position as an eligible employee in the Verizon Enterprises Management Pension Plan – the pension benefit you earned as an hourly employee remained in the hourly plan. If you were
previously an hourly employee participating in one of the GTE hourly pension plans – and you were promoted on or after January 1, 2002 from that position as an hourly employee to a position as an eligible employee in the Verizon Enterprises
Management Pension Plan – the pension benefit you earned under the hourly
plan has been transferred to the plan.

	
If you’re a former Bell Atlantic or NYNEX employee. The benefit you earned under the hourly plan will remain in and will be paid from the hourly plan when you
terminate employment with the company and all Verizon affiliates. Your plan benefit will be based on the greater of the benefits calculated for you under the cash balance benefit formula or
the Highest Average Pay formula based on your service as an eligible employee only.

	
If you’re a former GTE employee. Your benefits will be calculated in the same manner as the Verizon Management Pension Plan, as described immediately
above.

If you were previously a participant in another cash balance plan

If you have transferred from a position as an eligible employee in the Verizon Management Pension Plan to a position as an eligible employee in the Verizon Enterprises Management Pension Plan or vice versa, your entire benefit
will be transferred to and is payable from the plan in which you are currently an eligible employee.

	 Verizon
        Management Pension Plan 	43 	 3/2002 

 

If you’ve transferred to a position as an hourly employee

If you transfer on or after January 1, 2002 from a position as an eligible employee to a position as an hourly employee in which you are eligible to participate in the Verizon Pension Plan for Mid-Atlantic Associates, the Verizon
Pension Plan for New York and New England Associates or one of the GTE hourly pension plans:

	
Your plan benefit will remain in the plan and will be paid from the plan when you leave the company and all affiliates.

	
Your cash balance account will continue to be increased with interest credits until your plan benefit is paid to you.

	
If you are a former GTE employee, your Highest Average Pay formula benefit will increase based on the compensation and service you earn as an hourly employee up to May 31, 2004
(but not after). Your Highest Average Pay formula benefit will be offset by any benefit you earn under the hourly pension plan for the period you accrue service as an hourly employee.

	
You will earn pension benefits for your hourly employment in the amount provided in the applicable hourly plan, if any.

If you’ve transferred to a position as a salaried employee with no pension plan

If you transfer on or after January 1, 2002 from a position as an eligible employee to a position as a salaried employee of a Verizon affiliate that does not maintain a pension plan:

	
Your plan benefit will remain in the plan and will be paid from the plan when you leave the company and all affiliates.

	
Your cash balance account will continue to be increased with interest credits until your plan benefit is paid to you.

	
If you are a former GTE employee, your Highest Average Pay formula benefit will increase based on the compensation and service you earn as an hourly employee up to May 31, 2004
(but not after).

	 Verizon
        Management Pension Plan 	44 	 3/2002 

Bell System portability

 

Following the reorganization of AT&T and its subsidiaries on January 1, 1984, the former Bell Atlantic and former NYNEX made an agreement with certain companies. This agreement, termed the Mandatory Portability Agreement
(MPA), signed into law in 1984, provides for mutual recognition of service and the interchange of certain pension benefit obligations for a covered employee hired by a portability company after January 1, 1985.

If you are covered by the MPA, you may be eligible to carry over net credited service, vesting service and pension accrual service from a non-Verizon portability company to a Verizon portability company and vice versa, regardless
of the length of your break in service. Former GTE business units and certain former Bell Atlantic and NYNEX business units are not portability companies. If you would like to know if the Verizon affiliate you work for is a portability company,
please contact the Verizon Benefits Center.

Eligibility

As
a management employee, you must meet all of the following three conditions to
be eligible for portability of your service to or from another portability company’s
pension plan:

	
1.	
On December 31, 1983, you must have been working at a portability company:   
	 
	 	
	

	
As a non-supervisory management employee,
	 
	 	
	

	
As a supervisory management employee whose base annual pay was $50,000 or less or    
	 
	 	
	

	
On a leave of absence from either position (provided that you were reinstated to that position before the leave expired).    
	 
	
2.	
On the date after December 31, 1983 that you terminate employment with the first portability company, you must be working at that portability company as either a non-supervisory management employee or a supervisory management
employee with base annual pay at the date of termination of $50,000 or less, adjusted for changes in the Consumer Price Index (CPI) from December 31, 1983 to your termination date.     
	 
	
3.	
On your date of hire with the new portability company, you must be working as either a non-supervisory management employee or a supervisory management employee whose base annual pay at the date of hire was $50,000 or less,
adjusted for changes in the CPI from December 31, 1983 to your date of hire.     
	 

 

	 Verizon
        Management Pension Plan 	45 	 3/2002 

 

If you’ve transferred from a portability company

When
required by the MPA, if you are eligible for portability when you become an eligible
employee, the net credited service, vesting service and pension accrual service
you earned under the other portability company’s
pension plan will count toward your service under this plan.

Your transferred pension – the benefit you accrued under the other portability company’s plan – and assets representing the liability to pay for this benefit will be transferred to this plan. If the other
portability company had a traditional pension plan, the transferred pension will be expressed as a frozen single life annuity beginning at age 65 and will not be converted to a cash balance amount. (See the rules for unconverted annuity benefits on
page 11.) However, your pension accrual service will be used in your Highest Average Pay calculation. If the other portability company had a cash balance pension plan, your
transferred cash balance account will be added to your cash balance account under the plan.

If you’ve transferred from a portability company and have received a lump-sum payment of your benefit under the other portability company’s pension plan, you will still be credited with your prior service for purposes of
vesting service, net credited service and pension accrual service, but only if you agree, in writing, that your benefit under this plan will be reduced by the pension you earned under the other portability company’s pension plan.

Special vesting rules

Under
this plan, you are vested after five years of vesting service. However, the vesting
schedule may be different for your transferred pension. To determine whether
you’re vested, the two vesting schedules will be compared,
and the more generous of the two will be used.

Waiver of portability

If
you sign a waiver of portability when you join a new portability company, you
cannot transfer prior service under your former portability company’s plan to your new portability company’s plan. Instead, you will
continue to be entitled to a pension benefit under your former portability company’s
plan, and you will begin work at the new portability company with the status
of a new hire. If you sign a waiver of portability, the waiver remains in effect
at any portability company you may work for in the future. It is a one-time,
irrevocable lifetime waiver.

Transfers of pension liabilities from this plan to another planIf you are hired by a new portability company after you leave a Verizon portability company, meet the eligibility requirements for portability and do
not sign a waiver of portability (see section above), you can transfer your accrued
benefit from the plan to the new portability company’s pension plan. If
the benefit is transferred, you are no longer eligible for a pension under the
plan.

 

	 Verizon
        Management Pension Plan 	46 	 3/2002 

Employees of non-portability companies

Employees
of former GTE business units and certain former Bell Atlantic and NYNEX business
units are not covered by the MPA. However, if you work for a former Verizon affiliate
that is not a portability company and you meet all of the eligibility criteria
for portability, you will be given vesting and net credited service for your
employment with the portability company. You will not be eligible to transfer
prior pension accrual service, and your benefit under the portability company’s
plan will not be transferred to the plan.

 

	 Verizon
        Management Pension Plan 	47 	 3/2002 

 

  Details about the MFPF

 

The modified former pension formula benefit

 

On February 1, 2000, a new provision was added to the former Bell Atlantic’s cash balance plan that gave eligible Bell Atlantic employees a pension benefit equal to the greater of the cash balance plan benefit (which is the
same as the benefit under the cash balance formula described in this SPD) or the modified former pension formula (MFPF) benefit. Eligible Bell Atlantic employees accrued benefits under the MFPF through December 31, 2001.

If you were eligible for an MFPF benefit, your plan benefit will equal the greatest of the benefits calculated for you under the cash balance formula, the MFPF as of December 31, 2001 and the Highest Average Pay formula. However,
for employees for whom the MFPF provides the highest benefit on December 31, 2001, the plan provides for benefit increases after December 31, 2001. The single life annuity calculated for you as of December 31, 2001 under the MFPF will be increased
by adding to it a single life annuity benefit calculated under the Highest Average Pay formula based on your service as an eligible employee after December 31, 2001 only.

Eligibility

You were eligible for the MFPF benefit if you met all the following requirements:

	
	

	
You were a participant in one of Verizon’s Bell Atlantic cash balance plans,    
	 
	
	

	
Your benefit was not transferred to another portability company before February 1, 2000,     
	 
	
	

	
You were credited with at least 15 years of net credited service as of September 1, 1999 and 
	 
	
	

	
You had at least one day of active service after the conversion of your pension plan to a cash balance design, resulting in the crediting of pay credits and interest credits to a cash balance account under one of Verizon’s
Bell Atlantic cash balance plans:        
	 
	 	
—  	
For employees of the former Bell Atlantic, the conversion date is December 31, 1995. 
	 
	 	
—  	
For employees of the former NYNEX, the conversion date is December 31, 1997. 

Employees who had 15 years of net credited service as of September 1, 1999 and who did not have their benefit converted to an opening balance in one of Verizon’s Bell Atlantic cash balance plans because they were re-employed
or became participants in the cash balance plan after the conversion date, are also eligible for the MFPF benefit.

	 Verizon
        Management Pension Plan 	48 	 3/2002 

 

How the MFPF benefit is calculated

Your MFPF benefit provides a benefit payable in the form of a single life annuity beginning on your normal retirement date (see page 22). Your MFPF benefit
is calculated using:

	
Your average annual pension compensation from 1987 through 1991 (the base period),

	
Your total pension compensation from 1992 through the earlier of (i) your retirement or termination of employment or (ii) December 31, 2001 and

	
Your MFPF pension accrual service through 1991.

Your average annual pension compensation for the base period is multiplied by your years and months of pension accrual service through the end of 1991 (with any partial months rounded up to one whole month), which is then added to
your pension compensation from 1992 through the earliest of your retirement, termination or December 31, 2001. This total is then multiplied by 1.6% to calculate an annual amount.

	Average
    annual 	

        	 	

        	 

        	

        	 

        
	 pension 	

        	 	

        	 

        	

        	 

	 compensation
      for 	

        	 Total
            pension 	

        	 

        	

        	Your annual

        
	 base period 	 
	 compensation
            from 	

        	 
	 
	
MFPF benefit
        
	
(1987 – 1991)
        	

        	January
            1, 1992 to 	

        	 

        	

        	
(expressed as a
        
	
TIMES
        	PLUS

        	the
            earlier of 	TIMES

        	1.6%

        	=

        	 single
            life annuity 
	
MFPF pension
        	

        	 separation
            from 	

        	 

        	

        	beginning
            at 
	
accrual service
        	

        	 service
            or 	

        	 

        	

        	age 65) 
	
through
        	

        	 December
            31, 2001 	

        	 

        	

        	 

        
	
December 31,
        	

        	 

        	

        	 

        	

        	 

        
	
1991
        	

        	 

        	

        	 

        	

        	 

        

Some important definitions

In order to understand how your MFPF benefit is calculated, you should be familiar with the following terms:

	
	

	
Pension compensation includes your base salary, short-term incentives, differentials, commissions and back-pay awards (subject to annual limits, $170,000 in 2001) for all periods of MFPF pension
accrual service. It will be prorated for any periods of part-time employment after December 31, 1991.    
	 
	
	

	
MFPF pension accrual service is the years, months and days of service used to calculate your MFPF benefit. It will be prorated for any periods of part-time employment prior to January 1, 1992. In
general, your MFPF pension accrual service includes:     
	 
	 	
—  	
Service as an active participant in one of Verizon’s Bell Atlantic cash balance plans. Service earned prior to a break in service is included as long as you’ve completed 12 continuous months of net credited service under
the Bell Atlantic cash balance plan, if you’ve had a severance period of more than six months.      
	 

	 Verizon
        Management Pension Plan 	49 	 3/2002 

 

	 	—	Any pension accrual service credited to you
        under a former Bell Atlantic management pension
        plan or the former NYNEX management pension plan as of the applicable
    cash balance conversion date.
	 	 	 
	 	—	 If you were a participant in Verizon’s
        Bell Atlantic Cash Balance Plan (but not in Verizon’s
        Bell Atlantic Enterprises Cash Balance Plan or Verizon’s Chesapeake Directory
        Sales Company Cash Balance Plan), any pension accrual service credited
        to you under the Verizon Pension Plan
        for Mid-Atlantic Associates or the Verizon Pension Plan
        for New York and New England Associates, as long as you complete at least
        three continuous years of net credited
        service as a management employee of a participating company
        in Verizon’s Bell Atlantic Cash Balance Plan following the transfer.
        Any service for which the value of
        your accrued benefit has been paid in a lump sum may or may
        not be recognized, depending on the terms of the associate plan at the
        time you became an eligible employee
    in Verizon’s Bell Atlantic Cash Balance Plan.
	 	 	 
	 	—	 Any pension accrual service credited to
        you under an interchange company pension plan
        transferred for you under the mandatory portability rules (see page
        45) if the pension
        plan was for management employees or both management employees and associates
        (service earned prior to a break in service is included as long as you
        complete at least 12 continuous months
        of net credited service under the former Bell Atlantic cash
        balance plan, if you had a severance period of more than six months) – or
        three continuous years of net credited
        service under the former Bell Atlantic cash balance plan
    if the pension plan was for associates only.

If you are an eligible employee under the plan as of January 1, 2002, any waiting period noted above for the crediting of prior service is waived.

Determining MFPF benefits at earlier payment ages

If you are vested, you can receive benefits from the plan at any time after you leave the company and all Verizon affiliates. Because the MFPF benefit is calculated as a single life annuity benefit payable on your normal
retirement date, the benefit amount must be adjusted if payment is to begin earlier than your normal retirement date.

This adjustment to the MFPF benefit generally reduces the benefit to take into account the longer period over which a benefit starting at an earlier date will be paid. Please note that if the benefit is adjusted, the adjustment
applies for the entire period over which the benefit is paid.

	
If you start payment at your normal retirement date. If you start payment of your pension on your normal retirement date, the single life annuity calculated for you under
the MFPF is not reduced.

	 Verizon
        Management Pension Plan 	50 	 3/2002 

 

		

	If you start payment before your normal
          retirement date, but qualify for a service pension. You
          qualify for a service pension if you meet any of the following age
          and service requirements when you
    leave the company and all Verizon affiliates:

	
Net credited service
        	
Age
        
	
30 years
        	
Any age
        
	
25 years
        	
50+
        
	
20 years
        	
55+
        
	
15 years
        	
60+
        
	
10 years
        	
65+
        

If you qualify for a service pension, here’s how your MFPF single life annuity benefit will be reduced when payment starts before your normal retirement date:

  	 	—	If you have fewer than 30 years of net
            credited service and start
            receiving your monthly benefit
            before age 59, your MFPF benefit will be reduced 6% for each year (1/2%
            for each full and partial calendar month) that your benefit commencement
            age precedes your early retirement
            age (age 59). There is no reduction if you start your benefit
      after age 59. 
	 	 	 
	 	—	If you have 30 or more years of service, the
          benefit earned through December 31, 1995
          will not be reduced. The portion of your benefit earned after January
          1, 1996 and before January 1, 2002
          will be reduced 3% for each year (1/4 % for each full and partial calendar
          month) that your benefit commencement age precedes your early retirement age
          (age 59). There is no reduction if you start your benefit after age
      59. 
	 	 	 
	 	 Note: Any
          amounts that are added after December 31, 2001 to your frozen MFPF
          benefit as of December 31, 2001 will be reduced for payment prior to
          your normal retirement date, as set forth on page
          12 for the Highest Average
          Pay formula benefit. The reductions shown above for MFPF will not apply
      to those amounts.
	 	 
		

	If you start payment before
            your normal retirement date and do not qualify for a service
            pension. If you start your
            pension before your normal retirement date and you do not
            qualify for a service pension, the single life annuity calculated
            for you under the MFPF will be
            actuarially reduced for each month you start your benefit prior to
            your normal retirement date. In
            this situation, the amount your pension is reduced is significantly greater
            than the amount a pension is reduced if you qualify for a service
      pension. 

  
Payment options

All of the current payment options under the plan are available to you, including the lump-sum payment option, whether your greatest benefit is determined under the cash balance formula, the Highest Average Pay formula or the
MFPF. (See pages 22 and following for more information on payment options.)

See “If you die before your pension commencement date” on page 33 for more information about the timing and forms of payment available to your
spouse or beneficiary.

	 Verizon
        Management Pension Plan 	51 	 3/2002 

 

How your benefit may be offset

If your MFPF pension accrual service includes a period of service for which the accrued benefit for that period of service was either paid out in a lump sum or is being paid to you as an annuity, your MFPF benefit will be offset
to take account of the value of that prior lump sum or annuity benefit.

 

	 Verizon
        Management Pension Plan 	52 	 3/2002 

 

Administrative information

 

Introduction

 

This section of your summary plan description (SPD) contains important information about how the Verizon Management Pension Plan and the Verizon Enterprises Management Pension Plan are administered and funded. It also includes
information about your rights as a plan participant, which is governed by the provisions of a federal law, the Employee Retirement Income Security Act of 1974 (ERISA), as amended.

 

	 Verizon
        Management Pension Plan 	53 	 3/2002 

 

Additional information

If you divorce or separate

Your
plan benefit belongs solely to you or to your beneficiary if survivor benefits
apply when you die. In general, your benefit cannot be assigned to anyone else.
If you are divorced or separated, however, certain court orders – known as qualified domestic relations orders (QDROs) – could
require part of your benefit to be paid to someone else, such as your former
spouse or your child.

You may receive a copy of the plan’s procedures governing QDRO determinations. The plan administrator is required to furnish a copy of the procedures without charge. You may request a copy of the plan’s QDRO procedures
by contacting the Verizon Qualified Order Team, P.O. Box 1433, Lincolnshire, IL 60069-1433 or by calling the Verizon Benefits Center and asking to be transferred to the Qualified Order Team.

How benefits could be reduced, lost, suspended or delayed

Your pension benefits under the plan will be reduced, lost, suspended or delayed if one of the following conditions applies:

	
Your employment with all Verizon affiliates terminates by resignation, discharge, other separation from service or death before you have earned at least five years of vesting service (see page 35) and before you reach normal retirement age (see page 22).

	
You are re-employed by a Verizon affiliate and your benefits are temporarily suspended (see page 40).

	
Your benefits are attached or otherwise assigned under a QDRO, in which case any portion of your benefits that are not attached or assigned will be paid to you.
	
Your benefits are subject to a federal tax levy.

	
You do not provide the Verizon Benefits Center with your most recent address, such that you cannot be located.

	
You fail to make proper application for benefits or fail to provide necessary information.

	
You transfer to another Verizon affiliate or to a portability company, and your plan benefit is transferred to and paid from another pension plan maintained by such other company (see pages 45-47).

	 Verizon
        Management Pension Plan 	54 	 3/2002 

	
Your benefit payable as a monthly annuity at your normal retirement date is reduced because you elect to retire or start payment of your pension before your normal retirement date (see page 22).

	
Your benefit is reduced because you receive payment in an annuity form of payment other than a single life annuity (see pages 24
and following).

	
You have received your benefit as a lump sum or a single life annuity and no death benefits are payable as a result.

	
The plan is terminated before sufficient assets have been
accumulated to pay all benefits. (In this case, you may be protected by the Pension Benefit
Guaranty Corporation. See page
59.)

	
Your benefit is adjusted to account for prior payments made following a prior termination of employment (see page 40).

Change in ownership or control

In the event the ownership or control of Verizon changes significantly in the future as specifically defined in the plan, plan provisions restrict, for a five-year period after the change, actions to merge or consolidate the plan
with any other plan, to amend the plan to reduce benefits or retirement-type subsidies, or to revert or transfer assets of the plan to the company or an affiliate, even if the assets are excess and reversion would be permitted by law. In the event
the plan is terminated during that five-year period, all or part of any plan assets in excess of the amount needed to fund current benefits and administrative costs, as appropriate, will be used to fund employee benefits for affected
participants.

The change in control provisions in effect under the former GTE management pension plans were triggered by the May 18, 1999 GTE shareholder approval of the then-proposed merger between Bell Atlantic and GTE. That is why various
features of the former GTE management pension plan are continued for former GTE employees through May 2004 under this plan. If you would like more details regarding these change in control protections, please contact the Verizon Benefits
Center.

Top-heavy rules

Under
current law, if the plan provides more than 60% of its benefits to “key” employees, the plan is considered “top-heavy.” Both “top-heavy” and “key” employees
are terms defined under the Internal Revenue Code.

 

	 Verizon
        Management Pension Plan 	55 	 3/2002 

At present, the plan is not top-heavy. In the unlikely event that it becomes top-heavy, your benefits may be increased, and your vesting may be accelerated to keep the plan qualified under IRS regulations. The top-heavy vesting
schedule requires that you become 100% vested after you complete three years of vesting service.

Claims and appeals procedures

The claims administrator designated by the Verizon Claims Review Committee (the VCRC) has discretionary authority to determine claims for the plan. The VCRC is the appeals administrator for the plan. The claims and appeals
administrators have discretionary authority to decide claims under the plan and review and resolve any appeal of a denied claim.

Filing a claim

You and/or your beneficiaries have the right under ERISA and its subsequent amendments to file a claim if you believe you are entitled to benefits and benefits have been denied or incorrectly determined under the plan.

To submit a claim, put your concern in writing, explaining in your words your understanding of your benefit issue, and provide any supporting information in writing to the claims administrator c/o Verizon Benefits Center Claims
Review Unit, P.O. Box 1457, Lincolnshire, IL 60069-1457.

Once you have documented your claim along with any further information that you believe should be taken into account, the claims administrator has 90 days (except as described below) to process your claim after receiving
it.

If the claims administrator needs additional information from you in order to process your claim, you will be given 180 days to supply the needed information. In that case, the claims administrator will have not less than 45 days
from the date you supply the additional information or your 180-day period expires to make a decision on your claim.

If there are special circumstances requiring longer review, the claims administrator may take up to an additional 90 days to make a decision on your claim. The claims administrator will notify you in writing if more time is needed
(before the end of the initial review period) and of the final decision.

If your claim is denied

If your claim is completely or partially denied, a written notice of denial will be provided by the claims administrator, which will tell you the specific reasons for the decision, the plan provisions used to support the decision,
a description of any outstanding materials needed to approve the claim indicating why those materials are needed, and how you can appeal the decision.

 

	 Verizon
        Management Pension Plan 	56 	 3/2002 

Filing an appeal

You (the participant or beneficiary who filed a claim that was denied) may file an appeal if:

	
You receive no reply to your original claim within the initial 90 days.

	
The time for a decision on your original claim was extended for an additional 90 days, and you receive no reply after the additional 90 days.

	
You receive written denial of all or part of the claim and you want to appeal the denial.

You may appeal by submitting in writing a letter requesting an appeal and stating your concerns and any related facts to the Verizon Claims Review Committee, c/o Verizon Benefits Center Claims Review Unit, P.O. Box 1457,
Lincolnshire, IL 60069-1457. Your appeal letter must be received within 60 days after you receive the denial of your claim or fail to receive timely notice of the decision.

If you submit an appeal, you have the right to:

	
Review pertinent plan documents and other information relevant to the claim, which you can obtain as described on page
60.

	
Send a written statement of the issues and any other documents in support of your claim to the appeals administrator.

	
Request copies of written documents that are relevant to your appeal and receive them free of charge.

Review of your appeal

The VCRC, as appeals administrator, will review your appeal of the denied claim and will make a decision after receiving your written request for review. Your appeal will be decided within 60 days after being received by the
appeals administrator. However, if there are special circumstances that require additional time, the appeals administrator may notify you before the end of the initial 60-day period that the review will be extended by an additional 60 days for a
total of 120 days from receiving your appeal.

Normally, the appeals administrator will notify you of the decision in writing, setting forth the reason for the decision, plan provisions on which the decision is based, the availability of relevant documents and your right to
bring a civil action under ERISA. However, if you do not receive a decision or notification within the appropriate time span, you should consider the appeal denied.

In case of an appeal, the appeals administrator’s decision is final, conclusive and binding on all parties to the full extent permitted under the plan and under applicable law. However, as a plan participant, you may have
further rights under ERISA after you have exhausted the claims and appeals process, as described in the section below explaining your rights under ERISA.

 

	 Verizon
        Management Pension Plan 	57 	 3/2002 

Benefits under this plan will be paid only if the plan administrator or, in the case of a claim or appeal, the claims or appeals administrator decides in its discretion that the participant or beneficiary is entitled to
them.

Special rules for certain disability pension claims

As noted on page 14,
you may be entitled to an unreduced pension under the Highest Average Pay formula
if you have at least 15 years of net credited service and you are considered
disabled under the plan. One way you are considered disabled under the plan is
if you are receiving benefits under Verizon’s Long-Term Disability Income
Protection Plan (but not the former Bell Atlantic LTD Plan). If you are claiming
an unreduced disability pension as an individual receiving benefits under the
Verizon LTD Plan, your claim or appeal will be processed under the procedures
described above.

The other way you may be considered disabled under the plan is for the plan administrator to determine that you would be eligible to receive disability benefits under the Verizon LTD Plan if you had been a participant in the
Verizon LTD Plan. This provision could be important to you if you are a participant in the former Bell Atlantic LTD Plan or if you have waived participation in company LTD benefits altogether. If you are claiming an unreduced disability pension
under this second rule, your claim or appeal will be processed under the following procedures:

	
	

	
How to file. The claims administrator and appeals administrator are the same as indicated for the standard claims and appeals process. You file your claim or appeal in writing at the addresses
indicated above. 
	 
	
	

	
Processing of claims. You will receive a reply within 45 days of the claims administrator’s receipt of your claim (75 or 105 days, when special circumstances apply). 
	 
	 	
If your claim is denied, in whole or in part, the notice of denial will contain:     
	 
	 	
—	
The specific reasons for the denial. 
	 
	 	
—	
The plan provisions on which the denial was based.   
	 
	 	
—	
Any additional material or information you may need to submit to complete the claim. 
	 
	 	
—	
The plan’s appeal procedures.   
	 
	 	
—	
Information regarding internal procedures or clinical information, if applicable.    
	 

	 Verizon
        Management Pension Plan 	58 	 3/2002 

 

	
	

	
Appeal of denied claims. If your claim is denied, you must file your appeal and related information within 180 days from the date you receive written notice of your denied claim. You may request
access to all documents relating to your appeal. The individual/committee reviewing your appeal will be independent from the individual/committee who reviewed your claim. You will receive a reply within 45 days of the appeals administrators’
receipt of your appeal (90 days, when special circumstances apply). If your appeal is denied, the notice of denial will contain: 
	 
	 	
—	
The specific reasons for the denial. 
	 
	 	
—	
The plan provisions on which the denial was based.   
	 
	 	
—	
Information regarding internal procedures or clinical information, if applicable.    
	 
	 	
The decision on your appeal is final. However, you have a right to bring a civil action.     
	 

Pension Benefit Guaranty Corporation (PBGC)

Certain benefits under this plan are insured by the PBGC, a federal insurance agency. If the plan terminates (ends) without enough money to pay all benefits, the PBGC will step in to pay pension benefits. Most people receive all
of the pension benefits they would have received under their plan, but some people may lose certain benefits. You may be eligible to receive:

	
Normal and early retirement benefits.

	
Disability benefits, if you become disabled before the plan terminates.

	
Certain benefits for your survivors.

The PBGC guarantee generally does not cover:

	
Benefits greater than the maximum guaranteed amount set by law for the year in which the plan terminates.

	
Some or all of benefit increases and new benefits based on plan provisions that have been in place for fewer than five years at the time the plan terminates.

	
Benefits that are not vested because you have not worked long enough for the company.

	
Benefits for which you have not met all of the requirements at the time the plan terminates.

	
Certain early retirement payments (such as supplemental benefits that stop when you become eligible for social security) that result in an early retirement monthly benefit greater than your monthly benefit at the plan’s normal retirement age (age 65).

	
Non-pension benefits, such as health insurance, life insurance, certain death benefits, vacation pay and severance pay.

	 Verizon
        Management Pension Plan 	59 	 3/2002 

Even if certain of your benefits are not guaranteed, you may still receive some of those benefits from the PBGC, depending on how much money your plan has and how much the PBGC collects from employers.

For more information about the PBGC and the benefit guarantees, ask your plan administrator, or write to the PBGC at:

	
Technical Assistance Division

PBGC

1200 K Street NW, Suite 930

Washington, DC 20005-4026

The PBGC may also be reached by calling 1-202-326-4000. TTY/TDD users may call the federal relay service toll-free at 1-800-877-8339 and ask to be connected to 202-326-4000. Additional information about the PBGC’s pension
insurance program is available through the PBGC’s Web site on the Internet at http://www.pbgc.gov.

Rights of participants and beneficiaries under ERISA

Under ERISA, you have the following rights:

Receive information about your plan benefits

	
You may examine all plan documents without charge. These include annual financial reports, plan descriptions, insurance contracts, bargaining unit agreement provisions pertaining
to the plan, and all other official plan documents and reports, including a copy of the latest annual report (Form 5500 Series) filed with the U.S. Department of Labor and available at the Public
Disclosure Room of the Pension and Welfare Benefits Administration. The plan administrator makes these documents available for examination free of charge at specified sites, such as Verizon work
locations. For information, write to the plan administrator:

c/o Verizon Benefits Center 

P.O. Box 1457 

100 Half Day Road 

Lincolnshire, IL 60069-1457

Also, you may obtain copies of all plan documents and other plan information, including an updated summary plan description, upon written request to the plan administrator at the above address. Please include the full name of the plan in your written request, along with your name, social security number, mailing address and telephone number. You may be charged
25 cents per page for documents that you request.

	
You will receive a summary of the plan’s annual financial report. The plan administrator is required by law to furnish you with a copy of this summary annual report.

	 Verizon
        Management Pension Plan 	60 	 3/2002 

	
You may obtain a statement, upon written request,
telling you the amount of your accrued pension
benefit payable at normal retirement age if you stop working under the plan now. If
you are not fully vested, your statement will tell you how many more years you
have to work to be fully vested. These statements
are not required to be given more than once a year
and are provided free of charge.

Prudent actions by plan fiduciaries

In addition to creating rights for plan participants, ERISA imposes duties upon the persons who are responsible for the operation of the plan. The persons who operate your plan, called “fiduciaries” of the plan, have a
duty to do so prudently and in the interest of you and other plan participants and beneficiaries.

No one, including your employer, your union or any other person, may fire you or otherwise discriminate against you in any way to prevent you from obtaining a benefit or exercising your rights under ERISA.

Enforce your rights

If your claim for a benefit is denied or ignored, in whole or in part, you have a right to know why this was done and to obtain copies of documents relating to the decision without charge.

You have the right to have your claim reviewed and reconsidered on appeal, but your appeal must be timely. Under ERISA, there are steps you can take to enforce the previous rights.

For instance, if you request materials from the plan administrator that you have a right to receive and do not receive them within 30 days, you may file suit in a federal court. In such a case, the court may require the plan
administrator to provide the materials and pay you up to $110 a day until you receive the materials, unless the materials were not sent because of reasons beyond the control of the plan administrator.

If you have a claim for benefits that is denied or ignored, in whole or in part, you may file suit in a state or federal court. In addition, if you disagree with the plan’s decision or lack thereof concerning the qualified
status of a domestic relations order, you may file suit in federal court. If it should happen that plan fiduciaries misuse the plan’s money, or if you are discriminated against for asserting your rights, you may seek assistance from the U.S.
Department of Labor, or you may file suit in a federal court.

The court will decide who should pay court costs and legal fees. If you are successful, the court may order the person you have sued to pay these costs and fees. If you lose, the court may order you to pay these costs and fees
(for example, if it finds your claim to be frivolous).

	 Verizon
        Management Pension Plan 	61 	 3/2002 

 

Assistance with your questions

If you have any questions about the plan, you should contact the benefits administrator, which the plan administrator has established for purposes of administering benefits and responding to questions of participants and
beneficiaries. If you have any questions about this statement or about your rights under ERISA, or if you need assistance in obtaining documents from the plan administrator, you can contact the nearest office of the Pension and Welfare Benefits
Administration, U.S. Department of Labor, listed in your telephone directory, or the Division of Technical Assistance and Inquiries; Pension and Welfare Benefits Administration; U.S. Department of Labor; 200 Constitution Avenue, NW; Washington, DC
20210.

You may also obtain certain publications about your rights and responsibilities under ERISA by calling the publication hotline of the Pension and Welfare Benefits Administration.

Plan information

The
Verizon Management Pension Plan and the Verizon Enterprises Management Pension
Plan are defined benefit pension plans that determine benefits using both cash
balance and traditional pension formulas. The company pays the full cost of each
plan by making contributions to a special pension fund. The amount that the company
contributes is determined by the plan’s actuary.

The assets of the pension fund for each plan are held in trust. The money in the trust can be used only to pay plan benefits and administrative costs and cannot be returned to the company until all benefits have been paid or
otherwise provided for (for example, in the form of an insurance company annuity). The trustee funds all payments under a plan from the pension fund for that plan.

Plan sponsor

For the Verizon Management Pension Plan, the plan sponsor is:

	
Verizon Corporate Services Group Inc.

c/o Verizon Communications Inc.

1095 Avenue of the Americas

New York, NY 10036

For the Verizon Enterprises Management Pension Plan, the plan sponsor is:

	
Chesapeake Directory Sales Company

c/o Verizon Communications Inc.

1095 Avenue of the Americas

New York, NY 10036

	 Verizon
        Management Pension Plan 	62 	 3/2002 

	
Plan administrator

The plan administrator for both plans is:

Verizon Employee Benefits Committee

c/o Verizon Benefits Center

P.O. Box 1457

100 Half Day Road

Lincolnshire, IL 60069-1457

The plan administrator and its designees have the discretionary authority to interpret the plan, resolve ambiguities, inconsistencies and omissions in the plan documents, develop rules and regulations to carry out the terms of the
plan, make factual determinations and resolve questions relating to the eligibility for and the amount of benefits.

You may communicate with the plan administrator in writing at the address above. But, for questions about plan benefits, you should write or call the Verizon Benefits Center (see below for the address and the telephone number).
The Verizon Benefits Center handles participant questions, requests and certain benefits claims, but is not the plan administrator. However, most of your day-to-day questions can be answered by the Verizon Benefits Center.

	
Verizon Benefits Center

P.O. Box 1457

100 Half Day Road

Lincolnshire, IL 60069-1457

Phone 1-866-998-8777 and press “1”

Plan funding

The plan is funded through company contributions made to a trust. The plan trustee is:

	
Mellon Bank, N.A.

c/o Patricia Farbacher

Vice President

One Mellon Bank Center - Room 3346

Pittsburgh, PA 15258

Plan identification

The Verizon Management Pension Plan is listed with the Department of Labor under employer identification number (EIN) 13-1675522 and plan number 001.

The Verizon Enterprises Management Pension Plan is listed with the Department of Labor under employer identification number (EIN) 23-2462664 and plan number 002.

	 Verizon
        Management Pension Plan 	63 	 3/2002 

 

Plan year

The
plan year is the calendar year – January 1 through December 31.

	
Agent for service of legal process

The agent for service of legal process is:

Verizon Legal Department

Verizon Communications Inc.

600 Hidden Ridge, HQE03G04

Irving, TX 75038

Legal process may also be served on the plan administrator or the plan trustee.

Participating companies

Most
Verizon affiliates participate in either the Verizon Management Pension Plan
or the Verizon Enterprises Management Pension Plan. Participants and beneficiaries
may contact the Verizon Benefits Center to determine whether a particular Verizon
affiliate is a participating company in either plan, and if that Verizon affiliate
is a participating company, may also request that affiliate’s address.

	 Verizon
        Management Pension Plan 	64	 3/2002EXHIBIT 10.32

 

 

Dated 15 February 2002

 

  VODAFONE GROUP PLC

TRUST DEED AND RULES

OF THE VODAFONE SHARE INCENTIVE PLAN

 

  	
    Shareholders’ Approval 
      	
     27 July  2000 
      
	
    Directors’ Adoption 
      	
     22 January  2002 
      
	
    Revenue Approval 
      	
     21 February  2002 
      
	
    IR Ref 
      	 A1514  
	
    IR Tax Ref 
      	 4073 0721/6  
	
    Expiry Date 
      	
     27 July 2010 
      

  

  

   

  	LINKLATERS

        One Silk Street

        London EC2Y 8HQ

      	 
	 	 
	 	 
	
    Telephone: 
      	
    (44-020) 7456 2000 
      
	
    Facsimile: 
      	
    (44-020) 7456 2222 
      

Table of Contents

	Contents	 

		
Page
	
	 	 	 
	1	
Meaning of words used 
		
2 
	
	 	 	 
	2	
Operation of the Plan 
		
4 
	
	 	 	 
	3	
Joining the Plan 
		
4 
	
	 	 	 
	4	
Free Shares 
		
6 
	
	 	 	 
	5	
Employee Purchased Shares - general rules 
		
8 
	
	 	 	 
	6	
Employee Purchased Shares - Accumulation Period 
		
10 
	
	 	 	 
	7	
Employee Purchased Shares - No Accumulation Period 
		
11 
	
	 	 	 
	8	
Matching Shares 
		
12 
	
	 	 	 
	9	
Dividends 
		
13 
	
	 	 	 
	10	
General rules about Shares 
		
16 
	
	 	 	 
	11	
Leaving the Plan 
		
18 
	
	 	 	 
	12	
General rules relating to the Plan 
		
19 
	
	 	 	 
	13	
Assets of the Plan 
		
21 
	
	 	 	 
	14	
Trustees 
		
21 
	
	 	 	 
	15	
Participating Companies 
		
23 
	
	 	 	 
	16	
Changing the Rules 
		
23 
	
	 	 	 
	17	
Termination 
		
24 
	
	 	 	 
	18	
Governing law 
		
25 
	

i

Trust Deed and Rules of the Vodafone

 Share Incentive Plan

This Trust Deed and Rules of the Vodafone Share Incentive Plan are made as a deed on 15 February 2002 between: 

	
(1)	
Vodafone Group Plc; and	
	 
	
(2)	
Mourant ECS Trustees Limited	

to set up a Plan with effect from the date of formal approval of the Plan by the Inland Revenue.

1

Part 1 - Definitions

	1	Meaning of words used
	 	 
	 	“Accumulation
            Period” means the
            period during which a Participant’s Contributions for Employee
            Purchased Shares are held prior to their allocation and which shall
            not be longer than the period specified in Schedule 8 (currently
            12 months). 

       “Award
            System” means the
            system of calculating the number of Free Shares to be awarded from
            time to time, adopted by the Directors and which satisfies paragraph
            9 of Schedule 8 (participation on same terms).

       “Award
            Day” means the date
            on which Free or Matching Shares are awarded under the Plan. 

      “the
      Company” means Vodafone
      Group Plc.

       “Contributions” means
          deductions made from a Participant’s salary for the purpose of
          acquiring Employee Purchased Shares. 

       “Control” has
          the meaning given in Section 840 of the Taxes Act. 

       “Directors” means
          the board of directors of the Company or a duly authorised committee
          of it. 

       “Dividend
            Shares” means Shares
            which the Trustees acquire by reinvesting Participants’ cash
            dividends from their Plan Shares, as described in Rule 9. 

       “Employee” means
          an employee of a Participating Company. 

       “Employee
            Purchased Shares” means
            Shares which the Trustees allocate to Participants in respect of
            sums deducted from their salary as described in Rules 5, 6 and 7
            (and correspond to Partnership Shares as defined in Schedule 8). 

       “Employment” means
          employment by the Company or any associated company within the meaning
          of paragraph 126 of Schedule 8. 

       “Free
            Shares” means Shares
            awarded to Participants without payment, as described in Rule 4.

       “Group” means
          the Company and Participating Companies. 

       “Holding
            Period” means the
            period which the Directors set from time to time for holding Free
            and Matching Shares in the Plan, as described in Rule 4.2. 

       “Listed” means
          where Shares are admitted to the Official List of the UK Listing Authority
          and traded on the London Stock Exchange. 

       “The
            London Stock Exchange” means
            the London Stock Exchange plc. 

       “Market
            Value” means on any
            day where Shares are Listed, the middle market quotation derived
            from the Daily Official List of the London Stock Exchange on the
            preceding day and where Shares are not so admitted the market value
            of a Share determined in accordance with the provisions of Part VIII
            of the Taxation of Chargeable Gains Act 1992 and agreed in advance
            with the Shares Valuation of the Inland Revenue.

       “Matching
            Shares” means Shares
            awarded without payment as described in Rule 8, in proportion to
            any Employee Purchased Shares allocated to Participants. 

       “Method
            1” means the method
    described in paragraph 29 of Schedule 8.

 

2

Part 1 - Definitions

	 	“Method
            2” means
            the method described in paragraph 30 of Schedule 8. 

       “Participant” means
          any Employee who has joined the Plan.

       “Participating
            Company” means an
            employer participating in the Plan being the Company, any Subsidiary
            and any other company which the Inland Revenue agrees may be a participating
            company and which in both cases is so designated by the Directors. 

        “Performance
            Measures” means targets
            set by the Directors from time to time, which meet the requirements
            of paragraph 27 of Schedule 8 and govern the availability or number
            of Free Shares to be awarded under Rule 4. 

       “Plan” means
          the Vodafone Share Incentive Plan, as changed from time to time.  

       “Plan
            Shares” mean the Shares
            awarded or allocated to Participants under the Plan. 

      “Qualifying
    Company” means:
	 	 

	 	
(a)  		
a company that is a Participating Company at the end of the qualifying period; or	
	 
	 	
(b)  		
a company that was a Participating Company when the employee was employed by that company; or	
	 
	 	
(c)  		
a company that was an associated company (within the meaning of paragraph 126 of Schedule 8) of:	
	 
	 	 	
(i)	
a company qualifying under paragraph (a) or (b) above; or	
	 
	 	 	
(ii)	
another company qualifying as a qualifying company under paragraph 14 of Schedule 8	
	 
	 	 	
when the employee was employed by that company.	
	 

	 	“Reconstruction
            or Takeover” means
            a transaction affecting any Shares as described in paragraph 32 of
            Schedule 8. 

       “Salary” means
          emoluments of the Participant’s employment with a Participating
          Company, as are liable to be paid under deduction of tax pursuant to
          Section 203 of the Taxes Act (PAYE), (excluding expenses and benefits
          in kind) or which would be so liable if the Participant was subject
          to tax under Section 19 of the Taxes Act. 

        “Schedule
            8” means Schedule
            8 to the Finance Act 2000. 

       “Share” means
          a share in the capital of the Company, which meets the requirements
          of Part VIII of Schedule 8, and any security which forms part of any
          new holding referred to in paragraph 115 of Schedule 8. 

       “Subsidiary” means
          a company which is under the control of the Company within the meaning
          of Section 840 of the Taxes Act. 

       “Taxes
            Act” means the Income
            and Corporation Taxes Act 1988. 

       “Trustees” means
    the trustee or trustees for the time being of the Plan.

 

3

 

 Part 2 - Operation of the Plan and Joining the
Plan 

	
2	
Operation of the Plan	
	 
	
2.1  		
Purpose of the Plan	
	 
	 	
The purpose of the Plan is to help and encourage the holding of Shares by Participants or for their benefit through an employee share ownership plan approved under the provisions of paragraph 4 of Schedule
8.	
	 
	 	
The Trustees may achieve the purpose of the Plan by applying the capital and income of the Plan assets to or for the benefit of Participants as described in the Rules.	
	 
	
2.2  		
Time of operation	
	 
	 	
The Directors can only operate the Plan between its approval by the Company in general meeting and the 10th anniversary of that date (27 July 2010).	
	 
	
3  		
Joining the Plan	
	 
	
3.1  		
Invitations	
	 
	 	
Subject to Rule 3.2, whenever the Directors decide to operate the Plan, they must invite all Employees who:	
	 
	 	
  3.1.1	
are chargeable to tax in respect of their employment under Case I of Schedule E of the Taxes Act; and	
	 
	 	
  3.1.2	
have been employees of a Qualifying Company throughout any qualifying period of service.	
	 
	 	
They may also invite other Employees, provided that, if there is a qualifying period of service, the Employees satisfy Rule 3.1.2.	
	 
	
3.2  		
Prohibited invitations	
	 
	 	
However, the Directors must not invite:	
	 
	 	
  3.2.1	
any Employee to receive an award of Free Shares, Matching Shares or Employee Purchased Shares in any tax year who has participated in that tax year (or is to participate at the same time) in another employee share
ownership plan approved under Schedule 8 which has been established by the Company (or a connected company, as described in paragraph 16 (4) of Schedule 8);	
	 
	 	
  3.2.2  		
any Employee to receive an award of Free Shares in any tax year if shares have been (or are at the same time to be) appropriated to that Employee in the same tax year under a profit sharing scheme approved under
Schedule 9 to the Taxes Act which has been established by the Company (or a connected company as described in paragraph 16(4) of Schedule 8);	
	 
	 	
  3.2.3  		
anyone who is excluded from participating under paragraphs 15 and 17 of Schedule 8 (material interest provisions).	
	 
	
3.3  		
Form of invitation and application	
	 
	 	
The letters of invitation and the application form to join the Plan must be made in the form agreed by the Directors and the Trustees, and approved by the Inland Revenue if necessary.	
	 

4

Part 2 - Operation of the Plan and Joining the Plan

	 	 The letter of invitation and application
      form will, if applicable, specify whether, for that operation of the Plan,
      Free Shares and/or Employee Purchased and Matching Shares may be acquired.
      If Employee Purchased Shares are available, the application form will comply
      with Rules 5.1 and 5.4. If Employee Purchased Shares are available and
      if there is an Accumulation Period, the application form will give details
    of the Accumulation Period.
	 	 
	
3.4  		
Qualifying period of service	
	 
	 	
The Directors may set a qualifying period of service from time to time. If the Directors set such a period for any operation of the Plan, it must apply in relation to, and be the same for, all Employees.	
	 
	 	
If Free Shares are offered, this period can be up to 18 months, ending with the date of award of Free Shares.	
	 
	 	
If Employee Purchased Shares are offered and there is no Accumulation Period, the qualifying period can be up to 18 months, ending with the start of deductions from salary under Rule 5. If there is an Accumulation
Period, the qualifying period can be up to 6 months, ending with the start of the relevant Accumulation Period.	
	 
	
3.5	
Return of application forms	
	 
	 	
Employees invited to participate in the Plan and who wish to do so, must return the signed application form to the Company by the date specified. By signing the form they agree to the terms and conditions of
participation set out in the form. Anyone who has not returned a signed form as required will not be awarded Free Shares and any right to acquire Partnership or Matching Shares will lapse.	
	 
	
3.6  		
Revoking applications	
	 
	 	
Before an Award Day, any Employee may write to the Company and direct the Trustees not to award Free Shares to him on that Award Day or on each later Award Day. That Employee may write to the Company to revoke this
direction at any time provided that such written notice is given at least thirty working days before that Award Day but must fulfil the requirements for joining for any future operations of the Plan and must complete an application
form.	
	 

5

  Part 3 - Free Shares

	
4	
Free Shares	
	 
	
4.1  		
Limit	
	 
	 	
If the Plan is operated to provide Free Shares,
Free Shares awarded to each Employee participating in the Plan must not have
an initial market value of more than £3,000 in any tax year, or any greater
amount  specified for the purposes of paragraph 24(1) of Schedule 8.
	 
	 	
Initial market value means the Market Value of any Free Share on the Award Day. If there are any restrictions or risk of forfeiture on any Free Shares, this is ignored when calculating Market Value. Free Shares will be
subject to a risk of forfeiture for these purposes if the interest that may be acquired is only conditional within the meaning of paragraph 65 of Schedule 8.	
	 
	
4.2  		
Terms relating to Free Shares	
	 
	 	
The Directors will set the following:	
	 
	 	
  4.2.1  		
the Award System for that operation of the Plan including any Performance Measures which apply, using either Method 1 or Method 2; and	
	 
	 	
  4.2.2  		
the Holding Period, which must be at least three years but not more than five years beginning with the Award Day, must be the same for all Free Shares being awarded and cannot be increased once set in relation to an
Award.	
	 
	 	
During this Holding Period, Rule 10.4 applies in relation to the Free Shares.	
	 
	
4.3  		
Notifying Participants of Performance Measures	
	 
	 	
If Performance Measures apply to the availability or number of Free Shares, the Directors will as soon as reasonably practicable, write and tell:	
	 
	 	
  4.3.1  		
each Participant about the Performance Measures which will be used to calculate the number of Free Shares awarded to him; and	
	 
	 	
  4.3.2  		
all Employees in general terms of the Performance Measures to be used to calculate the number of Free Shares awarded to each Participant. But the Directors may exclude from such notice any information if they
reasonably consider that to disclose it would prejudice commercial confidentiality.	
	 
	
4.4	
Payments by Participating Companies and acquiring Shares	
	 
	 	
As soon as practicable after setting the terms relating to the Free Shares, the Directors will write and tell each Participating Company of the amount it is required to contribute for that operation of the Plan. Each
Participating Company will pay to the Trustees this amount. The Trustees will use the funds to purchase or subscribe for Shares, as agreed with the Directors.	
	 
	
4.5  		
Awards of Free Shares	
	 
	 	
  4.5.1	
The Trustees will award Free Shares to each Participant on the basis set out in the Award System and any Performance Measures. If they award Free Shares to a Participant who is not an Employee on the Award Day, this
award will not be valid.	
	 

6

Part 3 - Free Shares

	 	
      4.5.2	
As soon as practicable after the award of Free Shares, the Trustees will write and tell each Participant of the award. The Trustees will include in the notification the number and description of the Free Shares, the
Holding Period applying to the Free Shares and their Market Value on the Award Day.	
	 	 	 
	4.6	Transfer of legal title
	 	 
	 	 After the end of the Holding
      Period the Participant may at any time direct the Trustees to transfer
      legal title of Free Shares and any related Dividend Shares to him, or as
    he may direct. 
	 	 	 

7

Part 4 - Employee Purchased Shares

	
5	
Employee Purchased Shares - general rules	
	 
	
5.1	
Application for Employee Purchased Shares	
	 
	 	
If the Plan is operated to provide Employee Purchased Shares, Employees invited to invest in Employee Purchased Shares (using deductions from salaries) who wish to do so, must complete the relevant section of the
application form. This section will satisfy the requirements of Part V of Schedule 8 (partnership share agreement) and will include the notice required under paragraph 38 of Schedule 8 (possible effect of deductions on state benefits).	
	 
	
5.2  		
Amount of Contributions	
	 
	 	
Each Participating Company will calculate the amounts and times of Contributions for its Participants.	
	 
	 	
Participants must not contribute more than the lower of:	
	 
	 	
  5.2.1  		
10% (or such lower percentage as the Directors may specify) of the salary payment from which the deduction is made or, where there is an Accumulation Period, the same percentage of salary over the Accumulation Period;
or	
	 
	 	
  5.2.2  		
£125 in any month (or a proportionate amount if salary is not paid monthly); or	
	 
	 	
a greater percentage or amount specified for the purposes of paragraph 36 of Schedule 8 from time to time.	
	 
	 	
If Contributions exceed these limits, the excess amount will be repaid to the Participant as soon as practicable, after deducting any PAYE and national insurance Contributions due.	
	 
	
5.3  		
Minimum Contribution	
	 
	 	
The Directors may set from time to time a minimum amount (not more than £10) for Contributions in any month, irrespective of the intervals at which Contributions are to be made. If there is such a minimum limit,
it will be set out in the application form.	
	 
	
5.4  		
Limit on Employee Purchased Shares	
	 
	 	
The Directors may set from time to time a limit on the number of Shares which may be acquired as Employee Purchased Shares. If there is such a limit, it will be set out in the application form.	
	 
	
5.5  		
Scaling down	
	 
	 	
If there is a limit on the number of Employee Purchased Shares which may be acquired and the Contributions set out in the application forms exceed that number, the Directors will scale down applications by taking any
one or more of the following steps:	
	 
	 	
  5.5.1	
reduce the excess over the set minimum Contributions proportionately;	
	 
	 	
  5.5.2  		
reduce all monthly Contributions to the set minimum sum;	
	 
	 	
  5.5.3  		
select applications to contribute the minimum sum by lot.	
	 
	 	
The Directors will notify Participants of the scaling down and their application forms will be deemed changed or withdrawn.	
	 

8

Part 4 - Partnership Shares

	
5.6      		
Holding Contributions	
	 
	 	
The Participants’ Contributions will be transferred to the Trustees as soon as practicable. The Trustees will hold the Contributions in an account with:	
	 
	 	
  5.6.1	
an institution authorised under the Banking Act 1987; or	
	 
	 	
  5.6.2	
a building society; or	
	 
	 	
  5.6.3	
a relevant European institution.	
	 
	 	
The account may, but need not, pay interest on Contributions held. If it does, the Trustees must account to each Participant for the interest earned on his Contributions.	
	 
	 	
The Trustees must pay to a Participant any Contributions it holds if, before acquiring Employee Purchased Shares on behalf of the Participant:	
	 
	 	
  5.6.4	
they receive a termination notice under Rule 17 (Termination); or	
	 
	 	
  5.6.5	
the Inland Revenue notifies the Company that it has withdrawn the approval of the Plan under Schedule 8.	
	 
	
5.7      		
Excess Contributions	
	 
	 	
If the Participant so agrees when completing the application form, the Trustees may carry forward and add to the amount of the next deduction any Contributions not used to acquire shares. If there is no such agreement,
the Trustees must pay the excess to the Participant, after deducting any PAYE and national insurance contributions due, as soon as practicable.	
	 
	
5.8      		
Accumulation Period	
	 
	 	
The Directors may determine from time to time whether there will be an Accumulation Period.	
	 
	 	
If there is an Accumulation Period, the start and end of the Accumulation Period must be set out in the application form. The period must start on or before the date of the first deduction of Contributions. It must not
exceed 12 months. The same Accumulation Period or periods must apply to all Participants for each operation of the Plan.	
	 
	 	
If a Participant ceases to be in Employment during an Accumulation Period, the Trustees must pay to the Participant any Contributions they hold as soon as practicable (together with interest, if payable, as described
in Rule 5.6).	
	 
	 	
If, during the Accumulation Period, a transaction occurs in relation to the Shares which results in a new holding of shares being equated with the Shares for the purposes of capital gains tax purposes (“new
shares”), then the Contributions held may be used at the end of the Accumulation Period to acquire new shares. By signing the application form Participants agree to the acquisition of new shares.	
	 
	
5.9      		
Stopping, varying and re-starting deductions	
	 
	 	
A Participant may give written notice to the Company to stop making deductions or to vary deductions from his salary. A Participant may not vary deductions from his salary more than twice in any year unless the
Directors so allow. He may also give written notice to the Company at any time that he wishes deductions to re-start, but he may not make up any missed Contributions.	
	 
	 	
The Company will arrange for deductions to stop or vary within 30 days of receiving the notice, unless the notice specifies a later date. The Company will arrange for deductions to	
	 

9

Part 4 - Partnership Shares

	 	 re-start by the next due
        date for deductions which is more than 30 days after receipt of the notice
    to restart. 
	 	 	 
	 5.10	 Return of Contributions 
	 	 	 

	 	 A Participant
        may at any time withdraw from the agreement made at the time of joining
        thePlan in relation to Employee
        Purchased Shares and ask for the return of any Contributions which have
        not been used to acquire Employee Purchased Shares by giving written
        notice to the Company. Unless a later date is specified in the notice
        a notice of withdrawal will take effect 30 days after it is received
        by the Company. The Trustees must pay to the Participant any Contributions
        they hold as soon as practicable (together with interest, if payable,
        as described in Rule 5.6) after the date that the notice of withdrawal
    takes effect. 
	 	 
	 5.11	 Allocation Eligibility Requirement 
	 	 
	 	 Employee Purchased Shares may only be
        allocated to an individual who is eligible to participate in the Plan
    at the following times: 
	 	 

	 	 5.11.1	where there is no Accumulation
        Period at the time the related Contributions are deducted;
    and 
	 	 	 
	 	 5.11.2	where there is an Accumulation Period
        at the time of the first deduction of the related
    Contributions. 
	 	 	 

	 5.12	 Notification by Trustees 
	 	 
	 	 As soon as practicable after the Trustees
        have allocated Employee Purchased Shares to a Participant the Trustees
        will notify that Participant in writing. The notice will include the
        number and description of the Employee Purchased Shares, the amount of
        Contributions used to acquire the Shares and the basis on which the number
        of Shares was calculated including the Market Value of the Shares on
    the date the Shares were acquired on their behalf. 
	 	 
	 5.13	 Access to Employee Purchased Shares 
	 	 
	 	 A Participant,
        may at any time, take out of the Plan any Employee Purchased Sharesacquired
        on his or her behalf. This is subject to the tax charge under paragraph
        86 of Schedule 8. But a Participant who takes out Employee Purchased
        Shares within 3 years of their acquisition may lose any rights to Matching
    Shares in respect of them (see Rule 11.4). 
	 	 
	 	 A Participant
        may direct the Trustees to transfer the Employee Purchased Shares to
        him orany other person. He may
        also assign or charge his beneficial interest in the Employee Purchased
    Shares. 
	 	 
	6	 Employee Purchased Shares - Accumulation
    Period 
	 	 
	 6.1	 Allocating shares - Accumulation Period 
	 	 

	 	 6.1.1	If there is an Accumulation
    Period, the Trustees must allocate Employee      Purchased Shares to each Participant within
    30 days after the end of that period. 
	 	 	 
	 	 6.1.2	The number of Shares allocated to each
        Participant will be calculated using the lower
        of the Market Value of the Shares at the beginning of the Accumulation
    Period and: 
	 	 	 

	 	 	(i) 	the
    Market Value on the date of allocation; or 

 

10

Part 4 - Partnership Shares

	 	 	
(ii)	
if the Shares are acquired over a period not exceeding 5 dealing days ending on the day preceding the date of allocation and the Shares are Listed, the average middle market quotation derived from the Daily Official
List of the London Stock Exchange over those 5 days; or	
	 
	 	 	
(iii)  		
if all the Employee Purchased Shares to be allocated to Employees on that occasion are purchased by the Trustees on the date of allocation and the Shares are Listed, the average price actually paid by the Trustees for
the Shares.	
	 	 	 	 
	 	6.1.3	 All Shares must be allocated on
    the same date.
	 	 	 

	
6.2	
Restarting or varying Contributions	
	 
	 	
The Directors may determine whether or not a Participant can restart or vary Contributions more than once within an Accumulation Period. If such a determination is made, it will be set out in the application
form.	
	 
	
7	
Employee Purchased Shares - No Accumulation Period	
	 
	
7.1	
Allocating shares - no Accumulation Period	
	 
	 	
7.1.1	
If there is no Accumulation Period, the Trustees must allocate Employee Purchased Shares to the Participants by a date set by the Trustees. This date must be not later than 30 days after the last day on which the
relevant deduction of Contributions takes place.	
	 
	 	
7.1.2	
If all the Employee Purchased Shares to be allocated to Employees on that occasion are purchased by the Trustees on the date of allocation and the Shares are Listed, then the number of Shares allocated to each
Participant will be calculated using the average price actually paid by the Trustees for the Shares.	
	 
	 	
7.1.3	
If all the Employee Purchased Shares to be allocated to Employees on that occasion are purchased by the Trustees on the date of allocation and the Shares are not Listed, then the number of Shares allocated to each
Participant will be calculated using the Market Value on the date of allocation.	
	 
	 	
7.1.4	
If all the Employee Purchased Shares to be allocated to Employees on that occasion are not purchased by the Trustees on the date of allocation then the number of Shares allocated to each Participant will be calculated
using:	
	 
	 	 	
(i)	
where the Shares are acquired over a period not exceeding 5 dealing days ending on the day preceding the date of allocation and the Shares are Listed, the average middle market quotation derived from the Daily Official
List of the London Stock Exchange; or	
	 
	 	 	
(ii)  		
the Market Value on the date of allocation.	
	 
	 	
7.1.5	
All Shares must be allocated on the same date.	
	 

11

  Part 5 - Matching Shares

  

	
8	
Matching Shares	
	 
	
8.1	
Ratio of Matching Shares to Employee Purchased Shares	
	 
	 	
If the Plan is operated to provide Matching Shares, a Participant who invests in Employee Purchased Shares is entitled to an award of Matching Shares. The Directors will set the ratio of Matching Shares to Employee
Purchased Shares from time to time and the ratio which applies will be set out in the application form. The same ratio must apply to all those who participate in the related acquisition of Employee Purchased Shares.	
	 
	 	
The ratio cannot exceed 2 Matching Shares to 1 Employee Purchased Share.	
	 
	 	
The ratio may change in the circumstances set out in the application form. The Directors will write and tell Participants if the ratio changes, before the acquisition of the related Employee Purchased
Shares.	
	 
	
8.2  		
Rights and restrictions	
	 
	 	
Matching Shares must be shares of the same class and carry the same rights as the Employee Purchased Shares to which they relate.	
	 
	 	
The Holding Period as described under Rules 4.2.2, 10.4 and 11 apply to the award of Matching Shares.	
	 
	
8.3	
Contributions from Participating Companies and acquiring Shares	
	 
	 	
The Directors will notify each Participating Company of the amount it is required to contribute in relation to Matching Shares. Each Participating Company will pay this amount to the Trustees and the Trustees will use
the funds to purchase or subscribe for Shares, as agreed with Directors.	
	 
	
8.4  		
Awards of Matching Shares	
	 
	 	
The Trustees will award Matching Shares to each Participant on the basis set out in the application form. The Trustees will award Matching Shares on the same day as it acquires the related Employee Purchased Shares on
behalf of the Participant. Any award to a Participant who is not an Employee on the date of award will not be valid.	
	 
	
8.5    		
Notification of Awards	
	 
	 	
The notification requirements set out in Rule 4.5.2 will apply to Matching Shares.	
	 
	
8.6  		
Transfer of legal title	
	 
	 	
After the end of the Holding Period the Participant may at any time direct the Trustees to transfer legal title of Matching Shares (and any related Dividend Shares) to him, or as he may direct.	
	 

12

Part 8 - Dividends

	
9  		
Dividends	
	 
	
9.1  		
Dividend Shares	
	 
	 	
The Directors may from time to time decide that instead of Participants receiving dividends in cash:	
	 
	 	
  9.1.1  		
the Trustees must re-invest cash dividends they receive in respect of Plan Shares they hold on behalf of Participants in additional Shares to be held on behalf of Participants; or	
	 
	 	
  9.1.2  		
the Trustees must re-invest cash dividends as set out in Rule 9.1.1 but only in respect of Plan Shares of Participants who have chosen this by completing the relevant section on the application form.	
	 
	 	
The total amount so reinvested cannot exceed £1,500 in each tax year (or such greater amount specified for the purposes of paragraph 54 of Schedule 8). If the Directors have not made such decisions, or if the cash
dividends exceed the limit, the Trustees must pay over dividends to relevant Participant as soon as practicable.	
	 
	 	
In calculating the limit, the Trustees must take into account any dividends reinvested under any other employee share ownership plan established by the Company or any associated company (within the meaning of paragraph
126 of Schedule 8), and approved under Schedule 8.	
	 
	
9.2  		
Allocating Dividend Shares	
	 
	 	
  9.2.1  		
The Trustees must allocate Dividend Shares by a date set by the Trustees. This date must be no later than 30 days after the date they receive the cash dividend.	
	 
	 	
  9.2.2  		
If all the Dividend Shares to be allocated to Employees on that occasion are purchased by the Trustees on the date of allocation and the Shares are Listed, then the number of Dividend Shares allocated to each
Participant is calculated using the average price actually paid by the Trustees for the Shares.	
	 
	 	
  9.2.3     		
If all the Dividend Shares to be allocated to Employees on that occasion are purchased by the Trustees on the date of allocation and the Shares are not Listed, then the number of Shares allocated to each Participant
will be calculated using the Market Value on the date of allocation.	
	 
	 	
  9.2.4  		
If all the Dividend Shares to be allocated to Employees on that occasion are not purchased by the Trustees on the date of allocation, then the number of Dividend Shares allocated to each Participant is calculated
using:	
	 
	 	 	
(i)  		
where the Shares are acquired over a period not exceeding 5 dealing days ended on the day preceding the date of allocation and the Shares are Listed, the average middle market quotation derived from the Daily Official
List of the London Stock Exchange over those 5 days; or	
	 
	 	 	
(ii)  		
the Market Value of the Shares on the date of allocation.	
	 
	 	
  9.2.5    		
In allocating Shares the Trustees must treat Participants fairly and equally.	
	 

13

Part 8 - Dividends

	
9.3  		
Cash dividends carried forward and paid	
	 
	 	
The Trustees may retain, carry forward and add to the amount of the next cash dividend to be reinvested, the amount of any cash dividend which is not sufficient to acquire one or more Dividend Shares. But the Trustees
must keep these amounts separately identifiable and amounts derived from an earlier cash dividend are treated as reinvested before an amount derived from a later cash dividend.	
	 
	 	
The Trustees must pay to the Participant, as soon as practicable, any cash amounts retained as referred to above:	
	 
	 	
  9.3.1	
which are not reinvested in Dividend Shares within 3 years of payment of the dividend; or	
	 
	 	
  9.3.2  		
if the Participant ceases to be in Employment; or	
	 
	 	
  9.3.3	
if they receive a termination notice under Rule 17.	
	 
	 	
When making the payment, the Trustees will supply to the Participant the information specified in paragraph 90 of Schedule 8.	
	 
	
9.4  		
Notification	
	 
	 	
As soon as practicable after the Trustees have allocated any Dividend Shares to a Participant, they will write and tell that Participant. The Trustees will set out the number and description of those Dividend Shares,
their Market Value on the date on which they were acquired, and any cash dividends carried forward as described in Rule 9.3. The tax treatment of cash dividends and Dividend Shares will be as described in paragraphs 89-93 of Schedule 8.	
	 
	
9.5    		
Rights and restrictions	
	 
	 	
Dividend Shares must be shares of the same class and carry the same rights as the Shares in respect of which the dividend is paid. They must not be subject to any forfeiture.	
	 
	 	
Rule 4.2.2 applies to Dividend Shares but the Holding Period must be 3 years starting on the date the Trustees allocated the Dividend Shares as described in Rule 9.2. Rules 10.4 and 10.7 also apply.	
	 
	
9.6  		
Other dividends	
	 
	 	
Cash dividends payable in respect of Plan Shares and not reinvested in Dividend Shares (because they exceed the limit set out in Rule 9.1 or for any other reason) will belong to the relevant Participant. The Trustees
will pay those dividends to the Participant as soon as practicable after receipt.	
	 
	 	
The Trustees are not required to pay a Participant any interest earned on any dividend to which the Participant is entitled.	
	 
	 	
The Trustees must hold unclaimed dividends for at least 12 years from the date of declaration of the dividend. If any dividends are unclaimed after this period, the Trustees may keep them and use them for the purposes
of the Plan.	
	 
	 	
Where any dividends received are foreign dividends within the meaning of paragraph 70(5) of Schedule 8 the Trustees will notify the Participant of the amount of any foreign tax deducted from the dividend before it was
paid.	
	 

14

Part 8 - Dividends

	9.7 	Scrip dividends
	 	 
	 	 The Trustees may receive,
        following a direction from the Participant, Shares credited as fully
        paid in whole or in part instead of a cash dividend (a scrip dividend).
        These Shares will not form part of the Participant’s Plan Shares.
        The Trustees will take all reasonable steps to transfer such Shares to
    the Participant. 

 

15

Part 9 - General Rules

	
10  		
General rules about Shares	
	 
	
10.1  		
Listing	
	 
	 	
If and so long as Shares are admitted to listing on the Official List of the United Kingdom Listing Authority and to dealing on the London Stock Exchange, the Company will where relevant apply for listing of any Shares
subscribed under the Plan as soon as practicable after their allotment.	
	 
	
10.2  		
Rights	
	 
	 	
Shares issued on subscription will rank equally in all respects with the Shares then in issue. However, the Directors may determine that they will not rank for any dividends or other distributions payable or made in
respect of a period beginning before their date of issue.	
	 
	 	
Where Shares are transferred they will have the benefit of all rights attaching to the Shares by reference to a record date on or after the date on which they are allocated or awarded.	
	 
	 	
The Trustees may award Shares where a proportion of which rank for any dividend or other distribution or other rights attaching to Shares by reference to a record date preceding the relevant Award Day and a proportion
of which do not. If this happens, the Trustees will award the Shares to each Participant as far as practicable in those same proportions.	
	 
	
10.3  		
Acquisition of Shares	
	 
	 	
The Company may from time to time ask the Trustees to acquire any number of Shares specified by it for award or allocation to Participants on a later operation of the Plan. If the Trustees agree to acquire Shares, the
Company will ensure that the Trustees have sufficient funds to do so. The Trustees may also acquire Shares at any other time, if they have sufficient funds to do so. These Shares must satisfy the conditions specified in Part VIII of Schedule 8.
Before any such Shares are awarded or allocated under the Plan, they will be held on general trusts for the purposes of the Plan.	
	 
	 	
Where there is a qualifying transfer of Shares to the Trustees those Shares must not be used as Employee Purchased Shares and must be included in any award of Free Shares or Matching Shares made after the date of the
transfer in priority to other Shares available for a particular award.	
	 
	 	
For the purposes of this Rule 10.3 there is a qualifying transfer of Shares to the Trustees if Shares are transferred to them by the trustees of an employee share ownership trust and the transfer is a qualifying
transfer within Section 69(3AA) of the Finance Act 1989 (transfer of shares in, or shares purchased from money in, an employee share ownership trust immediately before 21 March 2000).	
	 
	
10.4  		
Restrictions on disposals of Shares	
	 
	 	
The Participant must permit the Trustees to retain his Free Shares, Matching Shares and Dividend Shares throughout the Holding Period. He cannot assign, charge or dispose of his beneficial interests in the Shares in
any way during this period, except as described in Rule 10.7 and if the Participant leaves employment as described in Rule11.	
	 

16

Part 9 - General Rules

	
10.5  		
Plan limits	
	 
	 	
The number of Shares which may be allotted under the Plan on any day must not, when added to the aggregate of the number of Shares which have been allotted in the previous 10 years under the Plan and any other
employees’ share scheme operated by the Company, exceed 10 per cent of the ordinary share capital of the Company in issue immediately before that day.	
	 
	 	
In this Rule 10.5 “allotted” means, in the case of any share option scheme, the placing of unissued shares under option and, in relation to other types of employees’ share scheme, includes the issue of
shares. In determining the limits above no account shall be taken of any Shares where the right to acquire Shares was released or lapsed without being exercised.	
	 
	
10.6    		
Voting	
	 
	 	
The Trustees will invite Participants to direct them on the exercise of any voting rights attaching to Plan Shares held by the Trustees on their behalf. The Trustees will only be entitled to vote on a show of hands if
all directions received from Participants who have given directions in respect of a particular resolution are identical. The Trustees will not be under any obligation to call for a poll. In the event of a poll the Trustees will follow the directions
of Participants.	
	 
	 	
The Trustees must not vote in respect of unallocated Shares or any Shares they hold under the Plan which have not been registered in their name.	
	 
	
10.7  		
Offers	
	 
	 	
The Participant (or anyone properly authorised) has the right to direct the Trustees on the appropriate action to take in relation to any right relating to a Participant’s Plan Shares to receive other shares,
securities or rights of any description, and in relation to a Reconstruction or Takeover. The Trustees may not take any action without such a direction. If the Trustees are to be involved in any liability they may require an indemnity which they
consider appropriate from the Participant.	
	 
	 	
Where the Trustees sell rights in order to have enough funds to acquire shares and securities in a company, they will hold those shares or securities as Plan Shares, treated in the same way as the Shares to which they
relate. But this only applies if the rights issue is offered in respect of all ordinary shares in the company.	
	 
	 	
On a Reconstruction or a Takeover the Trustees will hold any new shares (as described in paragraph 115 of Schedule 8) as Shares subject to the Plan, as if they were the original Shares.	
	 
	
10.8	
Fractional entitlements	
	 
	 	
Where, following any offer described in Rule 10.7, the Trustees receive rights or securities, they will allocate them among the Participants concerned on a proportionate basis, rounding down if necessary. The Trustees
will then add the fractions not allocated and sell the unallocated rights and securities. The Trustees will deduct all expenses of sale and applicable taxation from the proceeds of sale and distribute the net proceeds of sale proportionately among
the Participants whose allocation was rounded down. However, if a Participant’s entitlement is under £3 the Trustees may retain that sum.	
	 

17

Part 9 - General Rules

	
10.9  		
Capital receipts and other amounts	
	 
	 	
When the Trustees receive money which is a capital receipt (within the meaning of paragraph 79 of Schedule 8) or the proceeds of any disposal, they will transfer the sum to the Participant after complying with their
PAYE obligations. The Trustees may, however, retain any sum under £3 due to any Participant.	
	 
	 	
The Trustees must also pay over to each Participant any money or money’s worth relating to any of his Plan Shares, apart from money’s worth consisting of new shares as described in Rule 10.7. But the Trustees
are entitled to retain any amounts needed to discharge their PAYE obligations, and cash dividends reinvested or carried forward under Rule 9.	
	 
	
10.10	
Tax liabilities	
	 
	 	
The Trustees will maintain the necessary records to comply with their PAYE obligations and those of the Participating Companies so far as they relate to the Plan and in accordance with paragraph 95(2) of Schedule 8 pay
to the relevant employing companies sufficient sums to enable them to discharge their obligations. The Trustees may withhold any amount and make any such arrangements which they consider necessary, including the sale of any of a Participant’s
Shares, in order to make such payment.	
	 
	 	
When a Participant becomes liable to tax under Case V of Schedule D, Schedule E or Schedule F in relation to his Plan Shares, the Trustees must give the Participant any information relevant to determining that
liability.	
	 
	
11    		
Leaving the Plan	
	 
	
11.1  		
Leaving Employment - General Rule	
	 
	 	
Subject to the remainder of this Rule 11, the Directors may decide that the Plan will operate on the basis that if a Participant leaves Employment for any reason, the Trustees will transfer the Participant’s Plan
Shares to the Participant or as he may direct as soon as reasonably practicable and if no such direction is given by the Participant or no decision is made by the Directors, the Participant’s Plan Shares will be transferred by the Trustees to
the Participant within 90 days from the date that the Participant leaves Employment.	
	 
	 	
In the case of death reference to Participant is to his personal representatives.	
	 
	
11.2  		
Leaving Employment - Forfeiture of Free Shares and Matching Shares	
	 

	 	 11.2.1	 The Directors may decide
        that a Participant who leaves Employment within a period specified by
        the Directors (not exceeding 3 years) of the Award Day for such reason
        as they may specify (other than for those reasons set out in 11.2.2 below)
        will lose any rights to receive Free Shares or Matching Shares (but not
        to any related Dividend Shares). The period and the reason for leaving
        specified may be different for Free Shares and Matching Shares but will
        be the same for all Shares included in the same award. The Directors’ decision
        must be the same in respect of all Shares subject to the same operation
    of the Plan. 
	 	 	 	 
	 	 11.2.2	 If a Participant leaves employment for
        one of the following reasons, the Free Shares and Matching Shares will
        cease to be subject to the Plan on the date of cessation but he will
        not lose any rights to them and will be entitled to receive them on leaving
    Employment. The reasons are : 
	 	 	 	 
	 	 	 (i)	 death; 
	 	 	 	 
	 	 	 (ii)	 retirement on or after reaching
    age 50; 

18

Part 9 - General Rules

	 	 	(iii) 	 injury or disability; 
	 	 	 	 
	 	 	(iv) 	 redundancy (as defined in the Employment
    Rights Act 1996); 
	 	 	 	 
	 	 	(v) 	 his office or employment being in a company
        which ceases to be in the Group or to be associated with the Company;
    or 
	 	 	 	 
	 	 	(vi)	 his contract of employment
        relates to a business or part of a business which is transferred to a
        company which is not in the Group and is not associated with the Company
        under the Transfer of Undertakings (Protection of Employment) Regulations
    1981. 
	 	 	 	 

	
11.3  		
Leaving the Plan	
	 
	 	
The Directors may also decide that where Shares are withdrawn from the Plan within the meaning of paragraph 122 of Schedule 8 within a period specified by the Directors (not exceeding 3 years) of the acquisition or
award of the Shares to him, a Participant will not be entitled to the relevant Free Shares or Matching Shares. The period specified may be different for Free and Matching Shares but will be the same for all shares included in the same
award.	
	 
	
11.4  		
Taking out Employee Purchased Shares	
	 
	 	
The Directors may also decide that a Participant who takes out of the Plan any Employee Purchased Shares under Rule 5.13, within a period specified by the Directors (not exceeding 3 years) of their acquisition, will
not be entitled to any Matching Shares in respect of those Employee Purchased Shares. The period specified must be the same for each award of Matching Shares.	
	 
	
11.5  		
Trustees holding Shares	
	 
	 	
Where a Participant loses any right to receive Shares under this Rule, the Trustees will hold those Shares on general trusts for the purposes of the Plan.	
	 
	
11.6    		
Employment	
	 
	 	
In this Rule 11, a Participant will not be regarded as leaving Employment if he remains in the employment of the Company or any associated company.	
	 
	
12	
General rules relating to the Plan	
	 
	
12.1  		
Stamp duty	
	 
	 	
The Trustees and the Company will agree who will bear costs and expenses in relation to the acquisition, allocation, award, and transfer of shares under the Plan, provided that such arrangements are approved in advance
by the Inland Revenue.	
	 
	
12.2  		
Notices	
	 
	 	
Any notice or other document which has to be given in connection with the Plan may be delivered to a Participant or sent by post to him at his home address using the records of that Participant’s employing
company, or such other address as the Company or the Trustees consider appropriate or sent by e-mail to any address which according to the records of his employing company is used by him (or such other e-mail address as he may from time to time
specify). Any notice or other document which has to be given to the Company or the Trustees in connection with the Plan may be delivered or sent by post to them at their registered offices (or such other place as the Directors or the Trustees
may	
	 

19

Part 9 - General Rules

	 	 from time to time write and tell the Participants)
      or if the Directors allow and subject to such conditions as they may specify,
      sent by e-mail to the e-mail address for the time being notified by the
      Company. Notices sent by post will be deemed to have been given on the
      second day following the date of posting. Notices sent by e-mail, in the
      absence of evidence to the contrary, will be deemed to have been received
    on the first day after sending. 
	 	 
	
12.3  		
Documents sent to shareholders	
	 
	 	
The Company may send to Participants copies of any documents or notices normally sent to the holders of its Shares, at the same time as issuing them to the holders of its Shares.	
	 
	
12.4  		
Directors’ and Trustees’ decisions	
	 
	 	
The decision of the Directors (or of the Trustees if the Directors so decide) in any dispute or question affecting any Employee or Participant will be final and binding on the parties concerned.	
	 
	
12.5     		
Regulations	
	 
	 	
The Directors and the Trustees will have the power from time to time to make or vary regulations for the administration and operation of the Plan, but these must be consistent with this Deed.	
	 
	
12.6  		
Terms of employment	
	 
	 	
Nothing in this Plan will form part of a person’s contract of employment. The rights and obligations of a person under the terms and conditions of his employment will not be affected by his participation in the
Plan or the fact that he may be eligible to participate in it and nothing in these Rules will in any way be construed as imposing on a Participating Company or any associated company (within the meaning of paragraph 126 Schedule 8) a contractual
obligation as between that company and any person to offer participation in the Plan.	
	 
	 	
No person will have any right to compensation or damages or any other sum or benefit in respect of his ceasing to participate, or ceasing to be eligible to participate, in the Plan or in respect of any loss or
reduction of any rights or expectation under the Plan in any circumstances and participation in the Plan is permitted only on the basis that all or any such right as might otherwise arise is excluded and waived.	
	 
	 	
Nothing in this Plan will confer any benefit on a person who is not a Participant and no such third party will have any rights under the Contracts (Rights of Third Parties) Act 1999 to enforce any term of this Plan but
this does not affect any right or remedy of a third party which exists or is available apart from that Act.	
	 
	
12.7    		
Beneficiary who is incapable	
	 
	 	
If the Trustees consider that a person cannot look after his affairs (because of illness, mental disorder, age or other reason) it may use any amounts or Shares due to that person for his or her benefit, or may pay or
transfer them to some other person to do so. The receipt of the person to whom the Trustees make payments or transfers Shares will discharge the Trustees from any obligation in respect of the amounts or Shares concerned.	
	 
	
12.8  		
Setting up costs	
	 
	 	
The Company will pay the costs and expenses of the preparation and execution of these Rules.	
	 

20

Part 9 - General Rules

	
13	
Assets of the Plan	
	 
	
13.1  		
Assets held on trust	
	 
	 	
The Trustees will hold all the payments they receive and the assets representing them from time to time and all income on trust for the purposes of the Plan. The Trustees may also accept gifts of cash and Shares which
will be held on trust for the purposes of the Plan.	
	 
	
13.2  		
Use of assets	
	 
	 	
The Trustees may invest any moneys from time to time held by them and not immediately required for the purpose of the Plan in such manner as they may choose. The Trustees are not under a duty to invest trust
property.	
	 
	 	
The Trustees may receive Shares from a share ownership trust complying with the requirements of Schedule 5 of the Finance Act 1989. They may only use those Shares for the awards of Free Shares or Matching Shares, and
must use them before using other Shares.	
	 
	 	
The Trustees may borrow in order to acquire Shares for the purposes of the Plan or (but only after getting the written consent of the Company) any other purpose.	
	 
	
13.3  		
Plan expenses	
	 
	 	
The Trustees will pay the expenses of the Plan (including their own expenses incurred in attending to Plan business) from the Plan's assets, if the assets are sufficient and the Company decides in writing. If there is
no such direction the expenses of the Plan will be met by the Participating Companies in proportion to the amounts paid by them under the Plan or (if the Trustees decide) in proportion to the number of Shares awarded to their Participants under the
Plan in the related year, or in proportion to both.	
	 
	
13.4  		
Trustees’ duties relating to Shares	
	 
	 	
During the Holding Period, the Trustees may only sell or transfer any Free, Matching or Dividend Shares in the following circumstances:	
	 
	 	
  13.4.1	
if a Participant instructs this as described in Rule 10.7; or	
	 
	 	
  13.4.2	
to discharge their PAYE obligations under the Plan; or
	 
	 	
  13.4.3	
if they receive a termination notice as described in Rule 17.	
	 
	
14  		
Trustees	
	 
	
14.1  		
Appointment and removal	
	 
	 	
The Company may appoint new or additional trustees or a body corporate as a sole trustee. The Company may also remove trustees.	
	 
	 	
These powers will be exercised by resolution of the Directors. These powers may be exercised without giving a reason.	
	 
	 	
There must be at least two trustees, except when there is a sole corporate trustee.	
	 
	 	
All the trustees must be resident in the United Kingdom for United Kingdom tax purposes, at all times.	
	 

21

Part 9 - General Rules

	
14.2      		
Retirement	
	 
	 	
A trustee
may retire by giving to the Company written notice of his or her wish to retire.
The
notice will take effect at the expiry of 3 months
after the date of the notice, or on any other date agreed with the Company. The
retiring trustee need not give a reason for retiring and will not be responsible
for any costs arising from his retirement. The retiring trustee will take the
necessary action, as directed by the Company, to give effect to his retirement
including delivering all documents which he or she has relating to the Plan.
Any continuing trustee is authorised to effect the transfer of Plan assets on
behalf of a retiring trustee. 
	 
	
14.3	
Exercise of powers
	 
	 	
If there is more than one trustee, the Trustees may act by majority vote, and may delegate powers duties or discretions to any persons and on any terms (including terms which allow the delegate to
sub-delegate).	
	 
	 	
The Trustees may allow any Shares to be registered in the name of an appointed nominee but these Shares must be registered in a designated account.	
	 
	 	
Trustees who delegate powers or use a nominee are not divested of any responsibility under the Rules or under Schedule 8.	
	 
	 	
The Trustees may at any time, and must if the Company so directs, revoke any delegation made under this Rule, or require any Plan assets held by another person to be returned to the Trustees, or both.	
	 
	
14.4      		
Trustees’ charges	
	 
	 	
A
trustee who carries on a profession or business
may charge for services provided on a basis
agreed with the Company, as also may a company or firm in which a trustee is
interested. These charges will also be paid from the Plan assets, if available,
unless the Directors decide otherwise. 
	 
	
14.5      		
Limit of liability	
	 
	 	
A   trustee
will not be liable for any breach of trust except wilful wrongdoing (but a paid trustee
will also be liable for negligence). 
	 	 
	
14.6      		
Indemnity	
	 
	 	
The Participating Companies will jointly and severally indemnify each trustee (except a paid trustee) against any expenses and liabilities which are incurred through acting as a trustee of the Plan but which cannot,
for any reason, be met from the Plan’s assets. But this does not apply to expenses and liabilities which are incurred through wilful wrongdoing or covered by insurance under Rule 14.7. The indemnity in this Rule 14.6 is in addition to and
without prejudice to the right which the Trustees have under general law and the Trustee Act 2000 to be indemnified out of the Plan’s assets.	
	 
	
14.7      		
Insurance	
	 
	 	
The Trustees may insure the Plan against any loss caused by it or any of its employees, officers, agents or delegates. They may also insure themselves and any of these persons against liability for breach of trust not
involving wilful wrongdoing. Except in the case of a paid trustee the premiums may be paid from the Plan assets.	
	 
	 	
If the Trustees are insured, they will waive the protection of Rule 14.5.	
	 

22

Part 9 - General Rules

	
14.8      		
Personal interest	
	 
	 	
The Trustees, and any director, officer or employee of a corporation acting as trustee, may be interested in any securities of a Participating Company or any other company in which a Participating Company may be
interested. Such person may enter into any contract with any such companies, and will not be liable to account for any profits obtained.	
	 
	
15      		
Participating Companies	
	 
	
15.1      		
Inclusion in the Plan	
	 
	 	
An employer wishing to participate in the Plan must enter into a deed with the Company and the Trustees, agreeing to comply with the Rules. The deed must be in a form agreed by the Inland Revenue.	
	 
	
15.2      		
Ceasing to participate	
	 
	 	
Any Participating Company will cease to participate in the Plan:	
	 
	 	
  15.2.1	
when it ceases to be under the control of the Company; or	
	 
	 	
  15.2.2	
if and during any times when the Directors decide that the Plan will not apply to it. (But in making this decision the Directors must ensure that the conditions in paragraphs 8 and 9 of Schedule 8 are still satisfied.
These conditions are that the Plan must not have any features which may discourage certain employees from participating, and that the Plan cannot benefit mainly directors or higher paid employees.)	
	 
	
16      		
Changing the Rules	
	 
	
16.1      		
Before Inland Revenue approval	
	 
	 	
Before the Inland Revenue approves the Plan under Schedule 8 the Directors can change the Rules as necessary in order to obtain approval.	
	 
	
16.2      		
After Inland Revenue approval	
	 
	 	
After the Plan is approved, the Directors and the Trustees may, together by deed at any time change the Rules. But if a key feature of the Plan is to be changed at a time when the Plan is approved by the Inland Revenue
under Schedule 8, and the approved status of the Plan is to be maintained, the change will not have effect until it has been approved by the Inland Revenue.	
	 
	 	
A “key feature” is any provision needed to comply with the requirements of Schedule 8.	
	 
	 	
The Directors and the Trustees must not make any change which would prevent achievement of the object of the Plan of helping and encouraging the holding of Shares by Participants or for their benefit.	
	 
	 	
The power to change the Rules in this Rule 16.2 is also subject to the restrictions in Rule	16.3.
	 
	 	
  The Directors must not make any changes to the Plan which would breach the rule against perpetuities (see Rule 17.4).	
	 

23

Part 9 - General Rules

	
16.3  		
Shareholders’ approval	
	 
	 	
  16.3.1  		
The Company in general meeting must approve in advance by ordinary resolution any proposed change to the advantage of present or future Participants which relates to the following:	
	 
	 	 	
(i)  		
the persons to or for whom Shares may be awarded under the Plan;	
	 
	 	 	
(ii)  		
the limitations on the number of Shares which may be issued under the Plan;	
	 
	 	 	
(iii)  		
the maximum entitlement for each Participant under the Plan;	
	 
	 	 	
(iv)  		
the basis for determining each Participant’s entitlement to Shares;	
	 
	 	 	
(v)  		
any rights attaching to the Shares;	
	 
	 	 	
(vi)	
the rights of Participants in the event of a capitalisation issue, rights issue, sub-division or consolidation of shares or reduction or any other variation of capital of the Company;	
	 
	 	 	
(vii)  		
the terms of this Rule 16.3.1.	
	 
	 	
Some relaxations of the requirements in this Rule 16.3.1 are set out in Rule 16.3.2.	
	 
	 	
16.3.2	
The Directors need not obtain the approval of the Company in general meeting for any minor changes:	
	 
	 	 	
(i)	
to benefit the administration of the Plan;	
	 
	 	 	
(ii)  		
which are necessary or desirable in order to obtain or maintain Inland Revenue approval of the Plan under Schedule 8 or any other enactment;	
	 
	 	 	
(iii)  		
to comply with or take account of the provisions of any proposed or existing legislation;	
	 
	 	 	
(iv)	
to take account of any changes to legislation; or	
	 
	 	 	
(v)	
to obtain or maintain favourable tax, exchange control or regulatory treatment of any Participating Company, or any present or future Participant.	
	 
	
17      		
Termination	
	 
	
17.1      		
Termination notice	
	 
	 	
The Company in general meeting or the Directors may at any time resolve to terminate the Plan. If they so resolve, they must issue a termination notice and give it without delay to:	
	 
	 	
17.1.1	
the Inland Revenue;	
	 
	 	
17.1.2  		
the Trustees; and	
	 
	 	
17.1.3	
Participants, and Employees who have returned valid application forms but have not been awarded any Shares or been allocated Employee Purchased Shares.	
	 
	
17.2      		
Effect of termination notice	
	 
	 	
Once the Trustees receive the termination notice, they must not award or acquire any more Shares on behalf of Participants.	
	 

24

  Part 9 - General Rules

  

	 	 The Trustees must remove each Participant’s
      Plan Shares from the Plan by either transferring them or the proceeds of
      their sale to the Participant or as he or she may direct. (If the Participant
      has died, his or her personal representatives may give these instructions.)
      This should be done as soon as practicable once three months have passed
      from the date the termination notice was given under Rule 17.1. But the
      Trustees may delay the removal of Shares until this can be done without
      any liabilities to income tax under Part X of Schedule 8. The Trustees
      may also remove Plan Shares at an earlier time if the Participant agrees
    after receiving the termination notice. 
	 	 
	 	 The Trustees must also pay to Participants,
      as soon as they receive the termination notice, any cash dividends they
      are holding (Rule 9.3) or any Contributions held during an Accumulation
    Period (Rule 5.8) . 
	 	 
	
17.3  		
Surplus assets	
	 
	 	
Any surplus assets left after the Trustees have removed Plan Shares under Rule 17.2 will be paid to Participating Companies so far as practicable in proportion to the total amounts made by each of them to the Plan, but
the Trustees may decide on payments in different proportions.	
	 
	
17.4  		
Perpetuity period	
	 
	 	
The perpetuity period relating to the Plan is eighty years. The Trustees may not award Shares more than seventy six years after the date of these Rules.	
	 
	 	
The end of the “perpetuity period” is the time by which Participants or other persons must have an interest in Shares, without risk of loss of any rights.	
	 
	
18	
Governing law	
	 
	 	
English law governs the Plan and its administration.	
	 
	 	
Executed as a deed on the date shown at the top of this document.	
	 

25

 

  	{	THE COMMON SEAL of

          Vodafone Group Plc was
          put

          onto this Deed in the presence

          of: 	 
	 	 	 
	 	Director	 
	 	 	 
	 	Secretary	 
	 	 	 
	 	 	 
	 	 	 
	{	This Deed was executed by

          Mourant ECS Trustees

          Limited in
          the presence of:

          	 
	 	 	 
	 	Director	 
	 	 	 
	 	Secretary	 

26

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00079-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00079-of-00352.parquet"}]]