At the moment bullet lists are lost.
Short version: The editor must implement content filters that transform the HTML MS Word provides into actual HTML (e.g., bullets from Word come as paragraphs, not <ul>).
By default, pasting content from an application to another application goes through the OS and the applications can choose what flavor of the content to provide. In the case of pasting to a browser, the browser informs MS Word to provide an HTML version of the content. What Word provides is often pretty bad HTML where a lot of the formatting is gone.
For example, bullet lists become paragraphs that have a span with a dot in it, but this is not a real bullet list.
You can compare that behavior between the Telerik editor and the naked behavior of the browser with markup like this:
<div contenteditable="true" style="min-height: 200px; border: 1px solid red;"></div> <TelerikEditor></TelerikEditor>
An editor component will do some processing that tries to ensure valid HTML and so some content changes are inevitable. The key thing is that we preserve the main HTML structure that Word provides.