CWA 1109 BK, NY

2017 CPS Award

Sunday, January 8, 2017
Dear Verizon Employee,
 
In March 2017, Verizon plans to reward eligible employees for their contributions to the company's financial success with a Corporate Profit Sharing (CPS) award.
 
The CPS award is a lump sum payment and will be paid to eligible employees on March 10 in employees' regularly scheduled payroll checks. The pay stubs will include a separate descriptor for the CPS award in the payment section.
 
The standard award amount is $500 and the minimum distribution amount for the 2016 plan year is $700, The actual CPS award amount will be determined based on company financial results for 2016 and must be approved by the Verizon Board of Directors in February. Additional information about the 2016 CPS award will be provided in March.
 
The CPS award is subject to FICA (Social Security and Medicare) taxes at the time of deferral. In addition, Pennsylvania employees are also subject to state and local (if applicable) withholding on the deferred award, The award will also be subject to union dues, if applicable, and to all legally required deductions such as wage garnishments. These deductions and taxes will be taken from your regular earnings to allow for the full award to be deferred and may result in a reduction of the net amount paid of your regular earnings.
 
Any overtime adjustment made as a result of receiving a CPS award is not eligible for savings plan deferral, The overtime adjustment amount will be included with your regular paycheck/direct deposit on March 10, (identified separately in your pay stub).
 
To Defer Your CPS Award to the Verizon Savings Plan
If you choose to defer your CPS award, you must make your election between January 3, 2017 and February 3, 2017. To make your election on the NetBenefits web site, go to netbenfits.com/Verizon, then enter your Username and password. Under the Quick Links drop down box for your plan, choose Contribution Amount. Scroll down to Profit Sharing and choose the Profit Sharing Election link. 
 
You may also call the Verizon Savings Plan Service Center at 888-457-9333 from 8:30 a.m. through Midnight Eastern time, Monday - Friday (except when the New York Stock Exchange is closed). Please note that the deferral period ends at 5:00 p.m. ET on February 3, 2017. If you choose not to defer your CPS award, your CPS cash award will be paid to you as described below.

If you were promoted to a management position in 2016, you are not eligible to defer your CPS award. Your CPS award will be paid to you in your regular paycheck/direct deposit on March 10. Your award will be treated as eligible compensation for regular savings plan contributions.

Additionally, the CPS award is not eligible for deferral into the savings plan when paid after you leave active service with Verizon. Therefore, if you elect to defer the award into the savings plan but leave the company for any reason before it is paid the award will not be deferred and will not be subject to regular savings plan deductions.

Example of CPS Deferral
Your decision on whether or not to defer your CPS award will affect your 2016 taxable income. Your deferral of the CPS award will be on a before-tax basis, and certain taxes (federal, state and local) on the amount deferred will not be due until you withdraw it from the plan. Please see the example below. Taxes and union dues applied in the example below are provided for illustrative purposes only and do not represent any one individual or union. You may wish to consult with a tax adviser before making your decision.

  Regular Check Regular Check w/ CPS Included
Regular Earninings $1,000 $1,000
CPS Amount   700.00
Federal Tax 170.71 170.71
FICA Tax 76.50 130.05
State Tax 30.70 30.70
Local Tax 10.00 10.00
Union Dues 13.00 22.10
Net Pay $699.09 $636.44
Net Deferred Amount   $700.00*

'Note: Federal, state, and local income taxes will not change as a result of the CPS earnings and deferral amounts, except in Pennsylvania where only Federal will not change. Your CPS award will not be used to pay deductions and taxes. Deductions, RCA and PA and local taxes, where applicable, will be deducted from your regular wages.

 
If You Choose Not To Defer Your Award
If you choose not to defer your award, you will receive your CPS award payment on March 10 in your regular paycheck with regular savings plan deductions and taxes withheld, as applicable, The award will also be subject to union dues, if applicable, and to all legally required deductions such as wage garnishments. Your savings plan deductions will be Invested based on your investment election on record for current contributions. Employees with direct deposit of net pay for regular paychecks will have the CPS award paid via direct deposit to the same financial institution and bank account.
If you have questions regarding the deferral of your CPS award to the Savings Plan you can call the Verizon Savings Plan Service Center at 888-457-9333. For general questions about CPS, contact your supervisor.
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