August 26, 2005
Mimi Hull, President
ASSOCIATION OF U S WEST RETIREES
Board Members and General members
This update concerns the Phelps v. Qwest
Employees Benefit Committee (ERISA
Disclosure case). As you know, this case concerns a
legal challenge to the company's wholesale denial of our
request for a copy of: 1) the pension plan "investment
policy guidelines"; and 2) the pension plan and
health care plan "investment trust proxy voting
policy." In this pending lawsuit, we have made demand
for the requested documents and asked for an award of
a daily penalty ($110) for each day that has gone by and
the documents not given to us. To date, more than 18
months since the original written request, Qwest still
refuses to disclose the requested documents. This,
despite Qwest CEO Richard Notebaert's proclamation that,
under his reign (unlike under former CEO Joseph Nacchio),
there would be more "transparency."
Yesterday morning, August 25, I filed a
legal brief in opposition to the company's
position. You can go to this URL and read a copy of
the legal brief:
As you know, AUSWR Executive Director
Nelson Phelps formally demanded disclosure of the
requested documents in order to help him and the
retiree association police the goings on with the
Qwest Pension Plan. Mr. Phelps was particularly
concerned about a complete loss of a $67 million
"put option" investment made with pension fund
monies in late 2001. Therefore, he asked for
documents in order to determine whether that highly
unusual investment was appropriate. Qwest's
response was to give Mr. Phelps the proverbial 'poke
in the eye,' essentially displaying an attitude by
the company that 'its none of your business and
since we think ERISA doesn't specifically force us
to do so, we won't reveal the requested paperwork.'
Therefore, this case involves one very narrow and
technical question: Is Qwest required to provide
certain documents to a retiree pension plan
participant pursuant to § 104(b)(4) of the Employee
Retirement Income Security Act of 1974, 29 U.S.C. §
1001, et seq. (“ERISA”)? Of course, we believe the
answer is “yes.” Therefore, Mr. Phelps's case
should not be dismissed as a matter of law. Qwest
should be required to disclose the requested
documents and pay the civil fine, as allowed by
ERISA.