Qwest Communications International
($ millions)
Total assets 14,527
Defined benefit 10,839
Defined contribution 3,688
* DEFINED BENEFIT PLAN:
Employer contributions 0
Benefit payments 827
Asset mix:
Domestic stocks 35%
Domestic fixed income 27%
Foreign stocks 20%
Foreign fixed income 1%
Private equity 7%
Real estate equity 3%
Other 7%
Internally managed assets 3,526
* DEFINED CONTRIBUTION PLAN:
Assets in corporate 401(k) 3,688
Total contributions 341
Asset mix:
Sponsoring company stock 31%
Other stock 38%
Fixed income 5%
Stable value 20%
Other 6%
ENGLEWOOD, Colo. - As of Sept. 30, Qwest Communications International's total employee benefit assets decreased 33% from a year earlier. Defined benefit assets decreased 26% during the same period; defined contribution assets decreased 48%.
Employer contributions to the defined benefit plan remained at zero; benefits paid increased 15%.
Qwest merged with US WEST on June 30, 2000. In October 2001, the US WEST 401(k) plan was merged into the Qwest 401(k) plan. As part of the merger, the long distance business was sold to Touch America Inc. On Jan. 1, 2001, Qwest dropped the one-year waiting period for 401(k) eligibility; employees became eligible to participate on the first day of the payroll period after their first paycheck. Qwest also instituted an automatic enrollment feature in its 401(k) plan, with a default deferral of 3% of pay.
DEFINED BENEFIT MANAGERS:
Domestic equities: Capital Guardian; Goldman Sachs; Wellington; Fidelity Investments; SSgA.
International equities: Capital Guardian; Brinson Partners; Morgan Stanley; Schroder.
Domestic fixed-income: NISA; Jennison; J.P. Morgan Fleming; Bridgewater; W.R. Huff; Oak Tree; TCW.
International fixed-income: Capital Guardian.
Real estate: J.P. Morgan Fleming; PRISA; Fidelity Investments; Goldman; UBS; SSR.
DEFINED CONTRIBUTION MANAGERS:
Domestic equities: BGI; Goldman Sachs; Fidelity; SSgA; Wellington.
International equities: Capital Guardian.
Domestic fixed-income: J.P. Morgan and NISA.
Stable Value: PRIMCO.
Brokerage Account: Charles Schwab .
Key personnel overseeing the investment management of the defined benefit plan are Kim Walker, vice president of Qwest Asset Management; Mary Beth Gorrell, director of public equities; and Kathy Lutito, director of fixed income. Overseeing the defined contribution plan are Ms.Walker; Don Butt, director of defined contribution plans; and Lance Ziettlow, manager of defined contribution plans.
