[X]
|
ANNUAL
REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
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[
]
|
TRANSITION
REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE
|
ACT
OF 1934
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A.
|
Full
title of the plan and the address of the plan, if different from
that of
the issuer named below:
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B.
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Name
of
issuer of the securities held pursuant to the plan and the address
of its
principal executive office:
|
2005
|
2004
|
||||||
PLAN
ASSETS
|
|||||||
Investments,
at fair value
|
$
|
54,315,661
|
45,695,966
|
||||
Cash
|
338
|
-
|
|||||
Contributions
receivable - employer
|
21
|
85,488
|
|||||
Contributions
receivable - participants
|
36
|
-
|
|||||
NET
ASSETS AVAILABLE FOR BENEFITS
|
$
|
54,316,056
|
45,781,454
|
Additions
to net assets:
|
||||
Investment
income:
|
||||
Net
appreciation (depreciation) in fair value of investments:
|
||||
Mutual
funds
|
$
|
686,725
|
||
Common
stocks
|
(125,764
|
)
|
||
Dividend
and other income
|
2,157,692
|
|||
Interest
income
|
163,805
|
|||
Net
investment income
|
2,882,458
|
|||
Contributions:
|
||||
Participants
|
5,814,216
|
|||
Company
|
2,355,649
|
|||
Total
contributions
|
8,169,865
|
|||
Total
investment income and contributions
|
11,052,323
|
|||
Deductions
from net assets:
|
||||
Participant
withdrawals
|
2,517,721
|
|||
Net
increase
|
8,534,602
|
|||
Net
assets available for benefits:
|
||||
Beginning
of year
|
45,781,454
|
|||
End
of year
|
$
|
54,316,056
|
(1)
|
SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES AND PROVISIONS OF THE
PLAN
|
Years
of Service
|
Percentage
Vested
|
||
Less
than 1
|
0%
|
||
1
|
20
|
||
2
|
40
|
||
3
|
60
|
||
4
|
80
|
||
5
|
100
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(2)
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DESCRIPTION
OF THE FUNDS
|
(a) |
CenturyTel
Common Stock Fund - consists of shares of CenturyTel Common Stock
($2,148,494 and $2,073,771 at December 31, 2005 and 2004,
respectively).
|
(b) |
Loan
Fund - represents loans to participants from the participants' investment
accounts ($3,155,683 and $2,550,968 at December 31, 2005 and 2004,
respectively).
|
(c) |
American
Funds Amcap, R4 - consists primarily of investments in U.S. common
stocks
($2,075,603 and $1,840,983 at December 31, 2005 and 2004,
respectively).
|
(d) |
Fidelity
Diversified International Fund - consists primarily of investments
in
foreign common stocks ($1,945,278 and $1,284,389 at December 31,
2005 and
2004, respectively).
|
(e) |
Oakmark
Equity and Income Fund, Class I - consists primarily of investments
in
U.S. equity and debt securities ($671,551 and $481,213 at December
31,
2005 and 2004, respectively).
|
(f) |
Morgan
Stanley Institutional Fund Small Company Growth Portfolio B - consists
primarily of investments in common stocks of small companies ($2,563,136
and $2,009,894 at December 31, 2005 and 2004,
respectively).
|
(g) |
PIMCO
Low Duration III Institutional Fund - consists primarily of investments
in
debt securities with an average duration between one and three years
($29,553 and $32,723 at December 31, 2005 and 2004,
respectively).
|
(h) |
PIMCO
Total Return Fund - consists primarily of investments in debt securities
($4,875,665 and $4,639,479 at December 31, 2005 and 2004,
respectively).
|
(i) |
Allianz
NFJ Small Cap Value Institutional Fund - (formerly PIMCO NFJ Small
Cap
Value Institutional Fund) consists primarily of investments in common
stocks of companies with market capitalizations between $100 million
and
$1.8 billion that have below average P/E ratios relative to their
industries and U.S. depositary receipts ($828,383 and $177,748 at
December
31, 2005 and 2004, respectively).
|
(j) |
T.
Rowe Price Retirement Income Fund - consists primarily of investments
in
U.S. and foreign equity and debt securities and money market instruments
and is managed for investors planning to retire (or begin to withdraw
substantial portions of their investment) in the near future ($628,050
and
$337,262 at December 31, 2005 and 2004,
respectively).
|
(k) |
T.
Rowe Price Retirement 2010 Fund - consists primarily of investments
in
U.S. and foreign equity and debt securities and money market instruments
and is managed for investors planning to retire (or begin to withdraw
substantial portions of their investment) around the year 2010 ($1,274,165
and $866,417 at December 31, 2005 and 2004,
respectively).
|
(l) |
T.
Rowe Price Retirement 2015 Fund - consists primarily of investments
in
U.S. and foreign equity and debt securities and money market instruments
and is managed for investors planning to retire (or begin to withdraw
substantial portions of their investment) around the year 2015 ($272,154
at December 31, 2005).
|
(m) |
T.
Rowe Price Retirement 2020 Fund - consists primarily of investments
in U.
S. and foreign equity and debt securities and money market instruments
and
is managed for investors planning to retire (or begin to withdraw
substantial portions of their investment) around the year 2020 ($812,510
and $335,241 at December 31, 2005 and 2004,
respectively).
|
(n) |
T.
Rowe Price Retirement 2025 Fund - consists primarily of investments
in U.
S. and foreign equity and debt securities and money market instruments
and
is managed for investors planning to retire (or begin to withdraw
substantial portions of their investment) around the year 2025 ($39,374
at
December 31, 2005).
|
(o) |
T.
Rowe Price Retirement 2030 Fund - consists primarily of investments
in
U.S. and foreign equity and debt securities and money market instruments
and is managed for investors planning to retire (or begin to withdraw
substantial portions of their investment) around the year 2030 ($778,710
and $437,652 at December 31, 2005 and 2004,
respectively).
|
(p) |
T.
Rowe Price Retirement 2035 Fund - consists primarily of investments
in
U.S. and foreign equity and debt securities and money market instruments
and is managed for investors planning to retire (or begin to withdraw
substantial portions of their investment) around the year 2035 ($20,535
at
December 31, 2005).
|
(q) |
T.
Rowe Price Retirement 2040 Fund - consists primarily of investments
in
U.S. and foreign equity and debt securities and money market instruments
and is managed for investors planning to retire (or begin to withdraw
substantial portions of their investment) around the year 2040 ($296,213
and $174,160 at December 31, 2005 and 2004,
respectively).
|
(r) |
T.
Rowe Price Equity Income Fund - consists primarily of investments
in U. S.
and foreign common stocks ($12,531,704 and $11,837,422 at December
31,
2005 and 2004, respectively).
|
(s) |
T.
Rowe Price Equity Index 500 Fund - consists of investments in the
same
stocks and in substantially the same percentages as the S&P 500 Index
($6,125,424 and $5,881,778 at December 31, 2005 and 2004,
respectively).
|
(t) |
T.
Rowe Price Mid-Cap Growth Fund - consists primarily of investments
in
common stocks of companies whose market capitalization falls within
the
range of companies in the S&P MidCap 400 Index ($5,224,486 and
$3,851,025 at December 31, 2005 and 2004,
respectively).
|
(u) |
T.
Rowe Price Summit Cash Reserves Fund - consists primarily of investments
in various money market instruments ($8,018,990 and $6,883,841 at
December
31, 2005 and 2004, respectively).
|
(3)
|
INCOME
TAXES
|
(4)
|
RELATED
PARTY TRANSACTIONS
|
(5)
|
CONCENTRATION
OF INVESTMENTS
|
Identity
of issuer, borrower,
|
Current
|
||||||||||||
lessor
or similar party
|
Description
of Investment
|
Value
|
|||||||||||
Investment
in CenturyTel Common Stock
|
64,792
|
shares
at $33.16 per share
|
$
|
2,148,494
|
|||||||||
|
|||||||||||||
Loan
Fund (interest rates ranged
|
|
||||||||||||
from 5.0% to 11.5%)
|
|
3,155,683
|
(Note
1
|
)
|
|||||||||
|
|||||||||||||
Investment
in Mutual Funds for
|
|
||||||||||||
Qualified Employee Benefit Plans:
|
|
||||||||||||
Managed
by Capital Research and Management
Company:
|
|
||||||||||||
American
Funds
Amcap, R4
|
108,956
|
shares
at $19.05 per share
|
2,075,603
|
||||||||||
Managed
by Fidelity Investments:
|
|
||||||||||||
Fidelity
Diversified International
|
59,781
|
shares
at $32.54 per share
|
1,945,278
|
||||||||||
Managed
by Harris Associates:
|
|
||||||||||||
Oakmark
Equity & Income Fund, Class I
|
26,884
|
shares
at $24.98 per share
|
671,551
|
||||||||||
Managed
by Morgan Stanley:
|
|
||||||||||||
Institutional
Fund Small Company Growth Portfolio B
|
208,216
|
shares
at $12.31 per share
|
2,563,136
|
||||||||||
Managed
by PIMCO:
|
|
||||||||||||
PIMCO
Low Duration III
|
3,003
|
shares
at $9.84 per share
|
29,553
|
||||||||||
PIMCO
Total Return Fund
|
464,349
|
shares
at $10.50 per share
|
4,875,665
|
(Note
1
|
)
|
||||||||
Managed
by Allianz Global Investors of America:
|
|
||||||||||||
Allianz
NFJ Small Cap Value Institutional
Fund
|
27,864
|
shares
at $29.73 per share
|
828,383
|
||||||||||
Managed
by T. Rowe Price:
|
|
||||||||||||
Retirement
Income Fund
|
50,405
|
shares
at $12.46 per share
|
628,050
|
||||||||||
Retirement
2010
Fund
|
87,451
|
shares
at $14.57 per share
|
1,274,165
|
||||||||||
Retirement
2015
Fund
|
24,256
|
shares
at $11.22 per share
|
272,154
|
||||||||||
Retirement
2020
Fund
|
51,984
|
shares
at $15.63 per share
|
812,510
|
||||||||||
Retirement
2025
Fund
|
3,433
|
shares
at $11.47 per share
|
39,374
|
||||||||||
Retirement
2030
Fund
|
47,223
|
shares
at $16.49 per share
|
778,710
|
||||||||||
Retirement
2035
Fund
|
1,767
|
shares
at $11.62 per share
|
20,535
|
||||||||||
Retirement
2040
Fund
|
17,876
|
shares
at $16.57 per share
|
296,213
|
||||||||||
Equity
Income Fund
|
483,476
|
shares
at $25.92 per share
|
12,531,704
|
(Note
1
|
)
|
||||||||
Equity
Index 500 Fund
|
182,576
|
shares
at $33.55 per share
|
6,125,424
|
(Note 1 | ) | ||||||||
Mid-Cap
Growth Fund
|
96,500
|
shares
at $54.14 per share
|
5,224,486
|
(Note
1
|
)
|
||||||||
Summit
Cash Reserves Fund
|
8,018,990
|
shares
at $1.00 per share
|
8,018,990
|
(Note
1
|
)
|
||||||||
$ |
54,315,661
|
Notes:
|
(1)
|
These
investments are greater than 5% of assets available for
benefits.
|
(2)
|
Information
on costs of investments is excluded as all investments are participant
directed.
|
CenturyTel, Inc. | |
Union Group Incentive Plan | |
June
28, 2006
|
/s/
R. Stewart Ewing, Jr.
|
R.
Stewart Ewing, Jr.
|
|
Retirement
Committee Member and
|
|
Executive
Officer of Issuer of Plan
Securities
|