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'A Slap in the Face': Embarq Retirees Latest to Feel Benefits Squeeze
By Kari C. Barlow, Northwest Florida Daily News, Fort Walton Beach
Nov. 18--For nearly 15 years, Embarq retiree James Kimbrell has enjoyed a
generous retirement package. The medical and life insurance benefits have
brought him peace of mind and helped pay for medications, doctor's visits and
cancer treatments for his late wife, Ann. Kimbrell never imagined he could lose
them, but that's exactly what will happen Jan. 1. Embarq, formerly Sprint, is
eliminating medical benefits for all retirees and capping life insurance
benefits at $10,000.
"It's a slap in the face," said Kimbrell, who worked for the companies that
eventually became Embarq for a total of 39 years. "They were promised to me."
Crestview resident J.R. Clay, who worked 32 years at Centel and Sprint, agrees
and has raised the idea of filing a class-action lawsuit. He has organized
meetings for local retirees affected by the cuts.
"Every retiree was told that he would have this health insurance for the rest of
his life," Clay said.
But Embarq officials say that benefits such as these do not come with a
guarantee.
"In any retiree benefit, there's always the option for the company to withdraw
those," said Charles Fleckenstein, spokesman for Embarq. "We have to become more
competitive. The days of the old phone company are gone."
Slashing retirement benefits to save money has become far more common in recent
years, industry observers say.
"It's sad about the Embarq people, but they're one of many," said David Goetsch,
vice-president of Okaloosa-Walton College and business author. "It isn't fair,
but that's the point -- global competition isn't fair."
Employment has changed dramatically since many retirees began their careers, he
said.
"Those retirement plans were developed when there was Ma Bell and GM owned the
world," Goetsch said. "We've entered into a level of competitiveness where they
can't afford to pay the benefits."
Whatever the explanation, the cuts will place a significant burden on Kimbrell's
and Clay's monthly expenses.
Although they have been searching for new health insurance, neither man has
found a new plan. Premium costs are coming in around $180 a month for both
spouses and prescription drugs are not always covered.
"I'm in good health, but that's not the point," Clay said. "We paid for these
benefits every hour that we worked, for as long as we worked."
Kimbrell, too, remembers most long days on the job and the hope of a comfortable
retirement.
"Me and my fellow workers, for years, provided this area with good telephone
service," Kimbrell said. "Our motto on the sign downtown was 'Public Service.'
We lived that."
Whether the hundreds of other Embarq retirees in this area have a shot at a
successful lawsuit remains to be seen.
But Clay and Kimbrell say they are not giving up.
"About 80 people have signed a commitment to help pay the legal fees," Kimbrell
said. "I'm not going to give up medical and $30,000 to my heirs without at least
challenging it."
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