QWEST PENSION PLAN

[Pages:406]QWEST PENSION PLAN

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QWEST

PENSION PLAN

TABLE OF CONTENTS

Page

PREAMBLE .................................................................................................................................. 1

ARTICLE I

DEFINITIONS................................................................................................. 4

ARTICLE II SERVICE....................................................................................................... 31

2.1.Pension Calculation Service .................................................................................................. 31

2.2.Term of Employment............................................................................................................. 32

2.3.Vesting Service ...................................................................................................................... 33

2.4.Breaks in Service; Periods of Severance - Bridging Rules.................................................... 33

2.5.Service With Members of the Controlled Group................................................................... 36

2.6.Service with Portability and Interchange Companies............................................................ 38

2.7.Leave of Absence; Disability................................................................................................. 38

2.8.Temporary Layoff.................................................................................................................. 39

2.9.Termination with Separation Payment................................................................................... 39

2.10.Special Rules for Incidental Employees .............................................................................. 40

2.11.Military Service ................................................................................................................... 41

ARTICLE III PARTICIPATION ......................................................................................... 41

3.1.Participation - Required Service ............................................................................................ 41

3.2.Re-employment After Break in Service or Period of Severance ........................................... 42

3.3.Transfer to Time Warner Communications ........................................................................... 43

3.4.Transfer to U S WEST Interactive Video Enterprises, Inc.................................................... 43

3.5.Employees Transferred to the Company from GTE .............................................................. 43

3.6.Participation - U S WEST Cellular Technical Services......................................................... 43

3.7.Participation - U S WEST Paging.......................................................................................... 44

3.8.Participation - MediaOne of Delaware, Inc. .......................................................................... 44

ARTICLE IV CONTRIBUTIONS ....................................................................................... 44

4.1.Employer Contributions......................................................................................................... 44

4.2.Participant Contributions ....................................................................................................... 44

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ARTICLE V OVERVIEW OF ARTICLES V-A THROUGH V-E.................................... 45 5.1.Overview................................................................................................................................ 45 ARTICLE V-A PENSIONS FOR OCCUPATIONAL EMPLOYEES ................................... 46 5A.1.Service Pensions ................................................................................................................. 46 5A.2.Disability Pension ............................................................................................................... 51 5A.3.Termination of Employment - Deferred Vested Pension - Vesting Rule ........................... 52 5A.4.Pension Amounts ................................................................................................................ 55 5A.5.Qualified Preretirement Survivor Annuities ....................................................................... 76 ARTICLE V-B GRANDFATHERED PENSIONS FOR MANAGEMENT

EMPLOYEES ................................................................................................ 78 5B.1.Service Pensions.................................................................................................................. 79 5B.2.Disability Pension ............................................................................................................... 82 5B.3.Termination of Employment - Deferred Vested Pension - Vesting Rule ........................... 82 5B.4.Coordination With Other Plans ........................................................................................... 84 5B.5.Death of a Participant before Commencement of Benefits................................................. 85 5B.6.Application of Article V-B.................................................................................................. 86 ARTICLE V-C GENERAL PENSION PROVISIONS .......................................................... 90 5C.1.Retroactive Pension Benefits .............................................................................................. 90 5C.2.Maximum Annual Benefit................................................................................................... 91 5C.3.Reemployment - Suspension of Benefits ............................................................................ 96 5C.4.No Reduction in Amount of Pension .................................................................................. 99 5C.5.Buy-Backs ........................................................................................................................... 99 5C.6.Benefit Increases ............................................................................................................... 100 5C.7.Application of New 1997 Rules; Pre-97 Plan ................................................................... 101 5C.8.No Benefits for Non-Vested Participants.......................................................................... 103 ARTICLE V-D PENSION FOR MANAGEMENT EMPLOYEES - DEFINED LUMP

SUM PENSION ........................................................................................... 103 5D.1.Application........................................................................................................................ 103 5D.2.DLS Pension ..................................................................................................................... 104 5D.3.Adjustment for Retirement Before Age 65 ....................................................................... 111 D.4.Disability Benefit ................................................................................................................ 111 5D.5.Death of a Participant before Commencement of Benefits............................................... 111

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5D.6.Transfers to or from Cable Companies ............................................................................. 115 5D.7.Coordination With Other Plans......................................................................................... 115 5D.8.Ex-NewVector Participants and Former NewVector Participants.................................... 121 ARTICLE V-E PENSION FOR MANAGEMENT EMPLOYEES-ACCOUNT

BALANCE PENSION................................................................................. 122 5E.1.Application ........................................................................................................................ 122 5E.2Account Balance Pension ................................................................................................... 123 5E.3.Late Retirement ................................................................................................................. 130 5E.4.Disability Benefit............................................................................................................... 131 5E.5.Death of a Participant before Commencement of Benefits ............................................... 131 5E.6.Coordination With Other Plans ......................................................................................... 133 ARTICLE VI FORMS OF PAYMENT ............................................................................. 134 6.1.Standard Form of Benefit Payment...................................................................................... 134 6.2.Qualified Joint and Survivor Annuities ............................................................................... 135 6.3.Life Annuity With Ten Years Certain ................................................................................. 140 6.4.Increasing Annuity Options ................................................................................................. 141 6.5.Lump Sum Options .............................................................................................................. 142 6.6.Limitations on Form Elected ............................................................................................... 144 6.7.Cash-Outs of $5,000 or Less................................................................................................ 145 6.8.Direct Rollover Election ...................................................................................................... 146 ARTICLE VII DEATH BENEFITS .................................................................................... 147 7.1.Accidental Death Benefits ................................................................................................... 147 7.2.Sickness Death Benefit ........................................................................................................ 148 7.3.Death After Retirement........................................................................................................ 148 7.4.Beneficiaries ........................................................................................................................ 149 7.5.Method of Payment.............................................................................................................. 149 7.6.Death After Termination of Employment............................................................................ 150 7.7.Claims .................................................................................................................................. 150 7.8.Charging of Payments.......................................................................................................... 150 7.9.Definition of Wages............................................................................................................. 150 7.10.Waiver of Death Benefit .................................................................................................... 151 7.11.Termination of Death Benefits........................................................................................... 151

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ARTICLE VIII NAMED FIDUCIARIES - ALLOCATION OF RESPONSIBILITIES...... 152 8.1.No Joint Fiduciary Responsibilities ..................................................................................... 152 8.2.The Participating Companies............................................................................................... 152 8.3.The Company....................................................................................................................... 152 8.4.The Committee..................................................................................................................... 153 8.5.Plan Design Committee ....................................................................................................... 153 8.6.Delegation ............................................................................................................................ 153 8.7.The Trustee .......................................................................................................................... 153 8.8.Allocation of Fiduciary Responsibilities ............................................................................. 153 8.anization of the Committees .......................................................................................... 154 8.10.Plan Expenses .................................................................................................................... 155 8.11.Agent for Process............................................................................................................... 155 8.12.Effective Date .................................................................................................................... 155 ARTICLE IX TRUST AGREEMENT - INVESTMENTS ................................................ 155 9.1.Trust Agreement .................................................................................................................. 155 9.2.Expenses of Trust................................................................................................................. 155 ARTICLE X PARTICIPATING COMPANIES ............................................................... 156 10.1.Adoption of Plan ................................................................................................................ 156 10.2.Agency of the Company .................................................................................................... 156 10.3.Disaffiliation and Withdrawal From Plan.......................................................................... 156 10.4.Effect of Disaffiliation or Withdrawal............................................................................... 156 10.5.Vesting Upon Disaffiliation or Withdrawal....................................................................... 158 ARTICLE XI TERMINATION AND AMENDMENT ..................................................... 158 11.1.Termination of Plan ........................................................................................................... 158 11.2.Distribution on Plan Termination ...................................................................................... 158 11.3.Restrictions on Distributions to Certain Participants......................................................... 161 11.4.Amendment by the Company ............................................................................................ 162 11.5.Limitation on Reversions................................................................................................... 162 11.6.Plan Merger or Consolidation............................................................................................ 165 ARTICLE XII TOP-HEAVY PROVISIONS ...................................................................... 165 12.1.Application of Top-Heavy Provisions ............................................................................... 165 12.2.Definitions.......................................................................................................................... 165

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12.3.Determination of Top-Heavy Status .................................................................................. 166 12.4.Special Vesting Rule.......................................................................................................... 167 12.5.Special Minimum Benefit .................................................................................................. 167 12.6.Change in Top-Heavy Status ............................................................................................. 168 12.7.Super Top-Heavy Limitations............................................................................................ 168 12.8.Modification of the Top-Heavy Rules ............................................................................... 168 ARTICLE XIII MISCELLANEOUS .................................................................................... 169 13.1.Right to Dismiss Employees.............................................................................................. 169 13.2.Claims Procedure ............................................................................................................... 169 13.3.Forms of Notices................................................................................................................ 173 13.4.Applicable Law.................................................................................................................. 173 13.5.Inalienability of Benefits - Domestic Relations Orders..................................................... 174 13.6.Payments Due Minors or Incapacitated Persons................................................................ 174 13.7.Uniformity of Application ................................................................................................. 174 13.8.Disposition of Unclaimed Payments.................................................................................. 174 13.9.Time of Payment................................................................................................................ 175 13.10.Offset for Payments Under Law ...................................................................................... 177 13.11.Gender and Number......................................................................................................... 177 13.12.Claims Release................................................................................................................. 177 13.13.Damage Claims or Suits................................................................................................... 178 13.14.Judgment or Settlement.................................................................................................... 178 13.15.Payment from Trust Fund ................................................................................................ 178 13.16.Cessation of Interest......................................................................................................... 178 ARTICLE XIV HEALTH BENEFITS ACCOUNT.............................................................. 178 14.1.Establishment of Health Benefits Account ........................................................................ 178 14.2.Amounts Transferred to Health Benefits Account............................................................. 179 14.3.Restrictions on Use of Amounts Transferred..................................................................... 180 14.4.Vesting of Accrued Benefits.............................................................................................. 180 14.5.Minimum Benefit and Minimum Cost Requirements ....................................................... 180 14.6.Definitions.......................................................................................................................... 181 APPENDIX A ACTUARIAL ASSUMPTIONS AND ALTERNATIVE BENEFIT

FORMS ........................................................................................................ A-1

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APPENDIX B APPENDIX C

APPENDIX D

APPENDIX E APPENDIX F APPENDIX G

APPENDIX H APPENDIX I APPENDIX J APPENDIX K APPENDIX L APPENDIX M APPENDIX N APPENDIX O APPENDIX P APPENDIX Q APPENDIX R APPENDIX S APPENDIX T

MANDATORY PORTABILITY AND INTERCHANGE AGREEMENTS........................................................................................... B-1

RETIREMENT REDUCTION FACTORS FOR DEFERRED VESTED PENSIONS (WITHOUT JOINT AND SURVIVOR ANNUITY ELECTION) ............................................................................. C-1

RETIREMENT REDUCTION FACTORS FOR DEFERRED VESTED PENSIONS (WITH 50% JOINT AND SURVIVOR ANNUITY ELECTION............................................................................... D-1

MERGER OF U S WEST PROFIT SHARING RETIREMENT PLAN .... E-1

PENSION BAND CONVERSION TABLES ..............................................F-1

MONTHLY PENSION FACTORS AND DETERMINATION DATES FOR COMMISSION DIRECTORY ADVERTISING SALES EMPLOYEES .............................................................................................. G-1

PENSION AD HOC GRADING ................................................................. H-1

EX-MEDIAONE EMPLOYEES (effective January 1, 1997)...................... I-1

MODIFIED DISABILITY PENSIONS (effective January 1, 1997) ........... J-1

LEAVES OF ABSENCE (effective January 1, 1997)................................. K-1

DEATH BENEFIT ELIGIBILITY CRITERIA........................................... L-1

ADDITIONAL DEFINED LUMP SUM BENEFIT FOR MANAGEMENT PARTICIPANTS (effective as of August 11, 2000)..... M-1

EL PASO COUNTY TELEPHONE COMPANY EMPLOYEES .............. N-1

ENHANCED RETIREMENT PENSION BENEFIT FOR CWACOMM PARTICIPANTS (effective as of October 12, 2000) .................... O-1

ENHANCED RETIREMENT PENSION BENEFIT FOR IBEWCOMM PARTICIPANTS (effective as of November 1, 2000) ..................P-1

ENHANCED RETIREMENT PENSION BENEFIT FOR CWA-BRI PARTICIPANTS (effective as of November 6, 2000) ............................... Q-1

ENHANCED RETIREMENT PENSION BENEFIT FOR CWA-DEX PARTICIPANTS (effective as of October 19, 2000) ................................. R-1

ADDITIONAL DEFINED LUMP SUM BENEFIT (effective as of July 1, 2001)..................................................................................................S-1

ENHANCED RETIREMENT PENSION BENEFIT FOR CWACHOICE TV-OMAHA PARTICIPANTS (effective as of August 11, 2002) ............................................................................................................ T-1

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QWEST PENSION PLAN

PREAMBLE

I. Plan History

U S WEST, Inc. ("Old U S WEST"), a Delaware corporation, established the U S WEST Pension Plan, effective January 1, 1984 (the "Occupational Plan"), for its eligible employees and the eligible employees of those of its Subsidiaries that determined, with the concurrence of the Old U S WEST Employee Benefits Committee, to participate in the Occupational Plan. Participation in the Occupational Plan was available to Employees who were either (a) non-management employees who were not covered by a collective bargaining agreement or (b) members of collective bargaining units represented by unions that agreed to participate in the Occupational Plan. Old U S WEST, on behalf of itself and its Subsidiaries, concurrently established a Trust as a part of the Occupational Plan.

Old U S WEST established the U S WEST Management Pension Plan, effective January 1, 1984 (the "Management Plan"), for its eligible salaried management employees and the eligible salaried management employees of certain of its Subsidiaries. Old U S WEST, on behalf of itself and its Subsidiaries, concurrently established a trust as a part of the Management Plan.

Effective January 1, 1993, the Occupational Plan and the Management Plan were merged into a single plan, named the U S WEST Pension Plan (the "Plan"). All references in the Plan to the Occupational Part shall, for periods prior to January 1, 1993, refer to the separate U S WEST Pension Plan and shall, for periods on and after January 1, 1993, refer to the provisions of this Plan that apply to Occupational Employees. All references in the Plan to the Management Part shall, for periods prior to January 1, 1993, refer to the separate U S WEST Management Pension Plan and shall, for periods on and after January 1, 1993, refer to the provisions of the Plan that apply to Management Employees.

Effective January 1, 1997, the Plan was amended to provide a defined lump sum program for Management Employees and to limit the application of the formula in Article V-B to certain current Management Participants. Except as set forth in the Plan, the references in the Plan to the Management Part shall, for periods on or after January 1, 1997, include a reference to the defined lump sum program.

In 1996, Old U S WEST acquired Continental Cablevision, Inc. Continental Cablevision maintained the Continental Cablevision Retirement Plan ("Cablevision Plan"). Continental Cablevision, Inc. was subsequently renamed MediaOne of Delaware, Inc. Effective January 1, 1997, the Cablevision Plan was merged into this Plan. Appendix I of the Plan governed the benefits of Employees and Former Employees of MediaOne of Delaware, Inc. and the other companies that participated in Appendix I.

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