Description of Verizon Executive Deferral Plan
On December 1, 2004, the Human Resources Committee of Verizon Communications Inc.’s Board of Directors adopted the
Verizon Executive Deferral Plan (the Deferral Plan) in order to comply with Section 885 of the American Jobs Creation Act of
2004 (the Act) and Section 409A of the Internal Revenue Code of 1986, as amended (the Code). Eligible employees and non-
employee Directors of Verizon Communications Inc. (Verizon) may elect to participate in the Deferral Plan as of January 1, 2005.
The Deferral Plan is a nonqualified, unfunded deferred compensation and supplemental savings plan that permits participants to
defer the receipt of certain compensation not otherwise eligible for deferral. For eligible employees, the Deferral Plan also
provides company-matching credits on certain deferrals that are comparable to the matching contributions under the Verizon
Qualified Savings Plan. Non-employee Directors do not receive matching contributions under the Deferral Plan. This plan will
not provide supplemental pension credits to any participant. The terms and conditions of the Deferral Plan are outlined below.
Highlights of the New Verizon Executive Deferral Plan
Nature of Plan Benefits
The Plan benefits are expressed in terms of an unfunded account balance and will equal
the value of that account balance when payments are made from the Plan. The value of
an account balance will increase or decrease based upon individual investment elections.
The Plan is a non-qualified benefit plan and the assets are not held in a trust.
Deferrals for Active Participants
Eligible employees can defer up to 100% of the portion of their base salary that
exceeds a limit included in the Internal Revenue Code ($210,000 in 2005)
(Eligible Base Salary).
• Eligible employees can defer up to 100% of their short-term incentive award.
• Directors can defer up to 100% of their cash retainer and as