Qwest to cut retirees' pension death benefits

Qwest is eliminating pension death benefits for thousands of retirees, a move that could cut the Denver-based company's liabilities by about $220 million.

As many as 27,000 retirees are eligible for the death benefit, which pays beneficiaries an amount equivalent to the retiree's last annual salary with the company. Qwest couldn't say how many are actually in line to receive the payout.

Employees who retired prior to 2004 and have "mandatory beneficiaries," such as a surviving spouse or dependent children, qualify for the benefit.

Retirees filed a lawsuit in 2005 to prevent Qwest from dropping the coverage but lost their appeal this past summer.

Qwest began notifying them Monday that the benefit will be eliminated effective March 1.

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