alcatel lucent pension lump sum

They could do that by purchasing annuities through an insurance company. Because this offer was already approved and in the works it is NOT impacted by the ruling. This offer, called the Alcatel-Lucent Retiree Lump-Sum Window Program, formally began on July 20, 2015 and ended on September 25, 2015. Currently the LTPP is funded at approximately 149%. In addition, Nokia will most probably create a Nokia (USA) subsidiary which would be completely subject to US laws. 17 24 The CWA has requested that ALU give us a complete accounting of how they are arriving at the lump sums (interest rates, mortality tables, etc.) Everyones situation is different and unique to them. Some former employees might also have the opportunity to change their current annuity option to a different annuity form. Careers at CWA. The Columbus Dispatch Tuesday February 16, 2016 5:00 AM. a835gQ00]=8gVYROU4CCXghhr'Hcbo2.0k7.8-1pC*A#=W[K!F$R# Vm}O%TimaUMG60)f 6(jvR NEZ;[R!m))62Kr)7;yPedf`zms Can the company terminate the pension plan? Hello Terry, Two announcements have been made this year by Alcatel-Lucent and many of you might think they are connected. 2023 Communications Workers of America, AFL-CIO, CLC All Rights Reserved | Site Map | Privacy Policy. !J,3pNM,A|f5\mCl]) Pv&hhy 6u!2|)z9F_!lE^wxDaOo8^ %SE91q45),lEQN8:O $o2dhcflYK fgOlK: 2SYu*q"H3;Ydi37t6K^4nb8o?/zYK We have been receiving a number of questions regarding the lump sum buyout recently offered to certain former employees, surviving beneficiaries and alternate payees, who are currently receiving monthly pension payments from the Lucent Technologies Inc. Pension Plan (the Plan). 0 The attached information (cover letterprogram announcementFTE Guide) will be mailed by Alcatel-Lucent to eligible Plan participants beginning tomorrow, Friday, June 26, 2015. at the current rate of yearly allocations given by the employer. endstream endobj 272 0 obj <>stream Last week retirees received the first official notice of the lump sum offering. Recipients have the option to do nothing and will continue to receive their current monthly annuity payments. For media inquiries, call CWA Communications at 202-434-1168 or emailnews@cwa-union.org. ~n]A9iRD wkvU@HB8E8JKkt>:O) So, if you are evaluating whether or not to take the lump sum, you should not take the lump just because you are fearful about the Nokia merger. A1) Alcatel-Lucent is making available financial and tax education services through Deloitte, an objective, third party organization, at no cost to you. A recent call with a financial advisor in California is representative of a common question related to pension de-risking and lump sums. Alcatel-Lucent, Murray Hill, New Jersey, announced Friday it plans to extend an offer of an immediate lump-sum payment to about 32,000 retirees and former employees in its U.S. Inactive . To read about CWA Members, Leadership or Industries, visit ourAbout page. In mid-July, eligible retirees will be sent a Your Benefit Decision Kit, which will show the amount of the individuals lump sum payment and any new annuity options (if applicable) that are available to them under the Program. The materials contained herein are intended for instruction only and are not a substitute for professional advice. This will limit your search to that combination of words. Alcatel-Lucent, Murray Hill, New Jersey, announced Friday it plans to extend an offer of an immediate lump-sum payment to about 32,000 retirees and former employees in its U.S. Inactive Occupational Pension Plan. Everyones situation is different and unique to them. 0000011786 00000 n The only caveats with this purchase of an immediate annuityare that if you die in a year or two, the insurance company keeps the remaining balance in the annuity account, and the check is a fixed amount that will not go as far if we have an inflation problem. \?Q8za"mb CMz>GWcgeXSoGcg z!#}'`yOx"(:otxJ+;`Oc56d jnSf;Tm;H8b`i@5@(^hq;X8@d]EXr|w^>|K3Y6g9skZy&jteg}aBM\ju.Ks8XpOTi#Dl8gCx. 569 0 obj <>stream Get access to the news, research and analysis of events affecting the retirement and institutional money management businesses from a worldwide network of reporters and editors. And it's true that one dollar in 1990 purchasing power requires $2.73 today. hmk0"tzc7hh:(}&5se(|EV i"0W-kb@@.P|,rQfd\e.9thw)SV"\N2,]Ew9gmP?e? To read about CWA Members, Leadership or Industries, visit ourAbout page. In Column D, at your life. 0 For media inquiries, call CWA Communications at 202-434-1168 or emailnews@cwa-union.org. Examples of those protections are: The Company may not retroactively reduce those benefits, once they are vested. IF the company decided to terminate the plan they would have to do it under government guidelines. For media inquiries, call CWA Communications at 202-434-1168 or emailnews@cwa-union.org. Alcatel-Lucent announced it was being purchased by Nokia. If you have further questions once you receive your package of materials, please contact the Alcatel-Lucent Retiree Lump Sum Window Benefits Center at (866) 617-7164. 0000014070 00000 n A2) This offer is strictly voluntary. She writes a weekly personal finance column syndicated in major newspapers by Tribune Content Agency. 0000002947 00000 n This means that there are specific guidelines that must be followed under federal law. old, single, working fulltime, and in great health (knock on wood). Alcatel-Lucent Old Scheme, London, completed a 100 million ($123.7 million) buy-in with Boarding Insurance Core. One of them is offering lump sum buy-outs. In terms of the Nokia merger There is a fear since Nokia is a foreign company our pensions would no longer be protected. Payments are expected to be made from existing U.S. plan assets and we do not expect to make any contributions to U.S. plan assets in connection with either offer, Mr. Malfavon said. you the lump-sum payment. You DO NOT have to accept this offer. The permissions that Alcatel-Lucent (ALU) had to file to amend its Pension Plan to offer the lump sum program started long before the Nokia merger was announced. 0000009608 00000 n As we get more information, we will publish it on this site. It doesnt prevent a company from declaring bankruptcy. Early this year Alcatel-Lucent announced they were investigating offering a voluntary lump sum buy-out of retiree pensions. In fact Alcatel-Lucent was a foreign company and they could not take our pension funds. Health & Safety Fact Sheets ; Legislation & Politics ; News & Events Questions Regarding the Alcatel-Lucent Pension Lump Sum Buyout. Case of the Week: Do Roth Recharacterizations Still Exist? I need to continue to withdraw money from my pension to live. %PDF-1.4 % If I roll it over, say into an IRA, then the income becomes taxable. 0000015986 00000 n 0 Alcatel-Lucent also recommends recipients of the offer consult with their personal financial planner and/or tax advisor before making a decision. If you choose to do nothing, your current monthly pension payments will continue. (What you might be thinking is that an IRA is less secure from creditors than a pension payout, and that would be correct.) To search specifically for more than one word, put the search term in quotation marks. If you dont have a choice, but must take the lump sum offered, then I suggest rolling it to an IRA as described above. 40 0 obj <>stream Q1) Where can I get more information about this offer? Q7) What happens to my healthcare if I take this lump sum buy out? Thank y. Terry Says: Well, first of all, you have one fact wrong. Legacy Alcatel-Lucent Pension Plan If you are eligible for a legacy Alcatel-Lucent pension benefit, you can learn more about it through the YBR website. Biggest Lucent Pension Drop in a Generation. one-time, opportunity to convert their current monthly pension payment to a lump-sum payment (or, for some individuals, to change their pension payment option). That new car or luxurious vacation may not . The premium amount will still be based on what your current monthly pension amount is today. Cash Lump Sum Options for: Company Pension; Any State or Federal Government Pension; Military; Police and FIre Pension; Teacher Pension; Call Us Toll Free: 1-800-853-5640 to reach a representative who will discuss your lump sum pension payment and retirement annuity options with you. All of this is costly to the company. Pros and Cons of Lump Sum Pension Payouts. More on Alcatel-Lucent retiree and pension issues and the acquisition by Nokia. (And, you will understand why the company wants to end the pension promise because it was too generous.). Bottom Line: Rising rates reduce lump sums. Early this year Alcatel-Lucent announced they were investigating offering a voluntary lump sum buy-out of retiree pensions. The Program Window is only in effect beginning July 20, 2015 and ends at 11:59 p.m. (EDT) on September 25, 2015. But keep in mind that a lump sum pension payout makes it easier to overspend in retirement. Learn more here. A4) What page 15 of the Financial and Tax book is referring to is that if Alcatel-Lucent declares bankruptcy and does not have enough money to cover the liabilities of the plan the PBGC would take over the plan. hbbd```b``z "kd(d? Alcatel-Lucent, Murray Hill, N.J., announced Friday it plans to extend an offer of an immediate lump-sum payment to about 32,000 retirees and former employees in its U.S. Inactive. We strongly advise you to gather as much information as possible and to consult with your own personal financial planner, legal advisor and/or tax advisor. But even if you follow the recommended plan,there will be no guarantees that the payouts will last your lifetime as would be the case with a pension. 0000001958 00000 n In fact these two announcements are not connected. under the Plan to a one-time, lump-sum payment. Examples of those protections are: The Company may not retroactively reduce those benefits, once they are vested. A7) If your healthcare premium is currently being deducted from your monthly pension check and you convert your monthly pension payments to a lump sum payment during the program, you will be billed directly for your healthcare premium and you MUST pay the premium in order to continue to receive your healthcare. 3QxbOJZL3 i`/ 4(yKH.WT=\}LN8V^*~& Social Security Solvency: Is it Really That Bad? r?Yw-g{A8se? Jx^m!xDC8p:PI((`![G EkrQXADX Workers' Rights Button submenu. endstream endobj startxref 0000001121 00000 n A6) The new annuity is a recalculation, for certain individuals, of the old calculations and is still administered by the pension plan. In fact that is why the CWA had to lobby for expanded legislation to continue to provide for collectively bargained medical and death benefits from the Plan. Despite a July 9 announcement that the IRS intends to eliminate lump-sum windows for retirees already receiving annuity payments, the Alcatel-Lucent lump-sum window is allowed to proceed under a special prenotice grandfather clause for programs announced prior to July 9. To: Formerly Represented Retirees of Alcatel-Lucent, Subject: Questions Regarding the Alcatel-Lucent Pension Lump Sum Buyout. I am 64 yrs. It is a sizable amount of money. That will get you a guaranteed stream of (fully taxable) income for as long as you live. endstream endobj 545 0 obj <>/Metadata 74 0 R/Pages 542 0 R/StructTreeRoot 124 0 R/Type/Catalog/ViewerPreferences 554 0 R>> endobj 546 0 obj <>/MediaBox[0 0 612 792]/Parent 542 0 R/Resources<>/Font<>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI]/XObject<>>>/Rotate 0/StructParents 0/Tabs/S/Type/Page>> endobj 547 0 obj <>stream Some eligible former employees also had the opportunity to change their existing annuity option to a different annuity option. I have to decide by Sept. 11, 2015. |@5=Ni!_DKZ89_<9Fa0MU)C2:)}yH0u g>.]uj&G([mRgm=G-MA5@au%l :vz,!MM@\Torx9 d:'FK]M2| Traditionally, when interest rates rise by 1% the amount in an Lucent employee's lump-sum will drop by 8 - 12%. Questions Regarding the Alcatel-Lucent Rent Lump Sum Purchase Alcatel-Lucent Pension Lump Sum Buyout | Communications Workers of America | Nokia to merge its 401(k) plan into Alcatel-Lucent's offering 0000014974 00000 n Therefore, the company cannot just take money from the pension plan and use it for other things. This is an extremely important decision and it requires careful consideration. web design and development by new target, inc. TAJ6LuR.u(NdLN_Ht)txF%K.)/|q1oO|uB+t{?ZQWH^ hsPZ=+,wz/ Former employee, ATT/Lucent/Alcatel-Lucent is offering a lump sum buyout of our pensions. After all, getting a huge influx of cash into your account upon retirement would make anyone jump for joy. Alcatel-Lucent, Murray Hillary, N.J., plans on make a unpaid lump-sum offer in 2015 until about 45,000 U.S. retirees and former employees vested in its U.S. defined benefit pension funds, according to a 6-K filing with the U.S. Securities and Exchange Order. One more point, just because our pension are protected now, we should not assume it will always be this way. I have many questions. Privacy PolicyTerms of UseCopyright. You have until September to decide and you should use the time to consult with someone who can review your individual situation. The lump-sum window runs from July 20 through September 25 and is completely voluntary. As we get more information, we will publish it on this site. The company said in its fourth-quarter earnings release that the offer, to take place in the fourth quarter of 2015, will run concurrently with a previously announced offer for retirees in its U.S. Management Pension Plan. Below the lump sum value in Column C, copy and paste the annual pension payout into every row for each year you live, till your life expectancy used in step 1. i receive a pension from alcatel-lucent. Again, this is an extremely important decision and it requires careful consideration. In fact Alcatel-Lucent was a foreign company and they could not take our pension funds. endstream endobj 273 0 obj <>stream The Pension Protection Act helps to ensure the plan is appropriately funded. The attachment labeled Lump Sum Program Announcement identifies who is and is not eligible. To do so, however, the employer must prove to a bankruptcy court or to the PBGC . The CWA actuaries will review them to be sure that how they are being calculated is correct. If you are not familiar with these principles, here are some quick tips. A lump sum payout is the more exciting option of the two. Case of the Week: Plan Establishment and Compensation, Case of the Week: Faulty Form 5500 Filings and Reasonable Cause, BREAKING NEWS: Announcing the 2022 NAPA Top DC Advisor Teams, Breaking News: Biden Vetoes Congressional Resolution Blocking ESG Rule, Jerry Schlichter and Tom Clark Fiduciary Litigation Debate: DC Pension Geeks Podcast, Brian Graff Has a Stark Warning for Advisors: NAPA 401(k) Summit, 401(k)s Increasingly Under Attack in Wake of SECURE 2.0 Passage. It is in the companys self-interest to keep the pension plan healthy because if it is not, they cannot pay for retiree medical from the plan and they have a contract saying they will pay retiree medical through the end of 2019. Copyright 2023by NAPA, Compliance Administrator (TPA) Evaluation. There are many things you need to take into account, many of which are described in the packet (taxes, your health, your age, your dependents, etc.) Alcatel-Lucent announced it was being purchased by Nokia. A3) The language on page 10 is standard language. Payments are expected to be made from existing U.S. plan assets and we do not expect to make any contributions to U.S. plan assets in connection with either offer, Mr. Malfavon said. We strongly advise you to gather as much information as possible and to consult with your own personal financial planner, legal advisor and/or tax advisor. The CWA actuaries will review them to be sure that how they are being calculated is correct. Alcatel-Lucent informed the CWA National yesterday that they intend to make available to certain former employees, surviving beneficiaries and alternate payees, who are currently receiving monthly pension payments from the Lucent Technologies Inc. Pension Plan (the Plan), a Lucent Retiree Lump Sum Window Program (the Program). On the one hand, you could roll the lump sum into an IRA, with no tax consequences, and then manage the investments and a withdrawal plan (with a certain Minimum Required Distribution) every year. Tenth Floor You may also contact the Alcatel-Lucent Retiree Lump Sum Window Benefits Center at (866) 617-7164. 0000007454 00000 n Following are the questions, with the answers, that we have received to date. To search for a combination of terms, use quotations and the & symbol. tS Therefore, the company cannot just take money from the pension plan and use it for other things. 0000008051 00000 n The ERISA consultants at the Learning Center Resource Desk, which is available through Columbia Threadneedle Investments, regularly receive calls from financial advisors on a broad array of technical topics related to IRAs and qualified retirement plans. Suite 3200 Figuring this out is very simple. `lsIf8 y[e?f-IE2.H54&%6h2SQ HUE{RV3@@ 0000000776 00000 n for subscribing, you are all set for your money saving tips. About 55,000 Holy cow, Nevin, you wrote a white paper! 2023 Communications Workers of America, AFL-CIO, CLC All Rights Reserved | Site Map | Privacy Policy, To: Alcatel- Lucent Formerly Represented Retirees, Surviving Beneficiaries and Alternate Payees, RE: Lump Sum Buy Out Of Monthly Pension Payments, Alcatel-Lucent Lump Sum Buy Out Of Monthly Pension Payments. It brings the total number of retirees and former employees who have yet to retire who will receive the offer to about 74,000, Marco Malfavon, company spokesman, said in an e-mailed reply to questions. 0000014929 00000 n 2023 Communications Workers of America, AFL-CIO, CLC All Rights Reserved | Site Map | Privacy Policy, More on Alcatel-Lucent Retiree and Pension Issues and the acquisition of Nokia. Get Email Updates; Receive Text Alerts; Detect Your Local; Search; Services Laborer of Worldwide . Q3) Page 10 of the Alcatel-Lucent Retiree Lump Sum Window booklet says the company has rights to terminate either plan, etc. 2015 Columbia Management Investment Advisers, LLC. Today, the pension plan is covered by ERISA and is protected by the Pension Benefit Guaranty Corporation (PBGC). 0000010715 00000 n Columbia Threadneedle Investments (Columbia Threadneedle) is the global brand name of the Columbia and Threadneedle group of companies. 0000017395 00000 n For a standard termination the company would have to show the PBGC that the plan has enough money to pay all the benefits owed to participants. The National Association of Plan Advisors is a non-profit professional society. These mailings detail a one-time opportunity to convert their remaining annuity payments under the Alcatel-Lucent Retirement Income Plan or Lucent Technologies Inc. Pension Plan to a lump-sum payment. endstream endobj 18 0 obj <> endobj 19 0 obj <>/ProcSet[/PDF/Text]/ExtGState<>>>/Type/Page>> endobj 20 0 obj <> endobj 21 0 obj <> endobj 22 0 obj <> endobj 23 0 obj <> endobj 24 0 obj <>stream 0000001515 00000 n HWmkF}J\l|MiJ(R~H'g![3(!yrqK.//n+BS2bj~BT g8neSlI9oC9/rgczB7e DC4eUS;,'uq_6#:87lS1YA(V[cEUXq#\"?v,|nSIE%v](4h vZJz'^ BUT, if you want some certainty about income, then you might take a portion of the money and buy one of those immediate annuities inside your IRA. So, if you are evaluating whether or not to take the lump sum, you should not take the lump just because you are fearful about the Nokia merger. In fact these two announcements are not connected. "It is an excuse to put money into their underfunded plan . More on Alcatel-Lucent retiree and pension issues and the acquisition by Nokia. You DO NOT have to accept this offer. For specifics, click on the employer's name to see the company's press release, SEC filing, or news story announcing the change (some links may expire). Synopsis of Material Modifications Alcatel-Lucent Retirement . 130 E. Randolph St. In fact, at this years CWA T&T Leadership conference, our Research Department conducted a workshop on trends in Pension de-risking and bargaining. Q2) Do I have to take this lump sum buyout offer? What about the Pension Protection Act? 553 0 obj <>/Filter/FlateDecode/ID[<94B3386967048548A045BA5BD9299ADC><31856CD454ED2C479B066D538F2F01B1>]/Index[544 26]/Info 543 0 R/Length 70/Prev 342004/Root 545 0 R/Size 570/Type/XRef/W[1 3 1]>>stream The advisor asked: What are the details around Alcatel-Lucents lump sum offer to former employees?. endstream endobj startxref 0000002597 00000 n %PDF-1.7 % Early this year Alcatel-Lucent announced they were investigating offering a voluntary lump sum buy-out of retiree pensions. It brings the total number of retirees and former employees who have yet to retire who will receive the offer to about 74,000, Marco Malfavon, company spokesman, said in an e-mailed reply to questions. 0000008372 00000 n In fact these two announcements are not connected. One of them is offering lump sum buy-outs. endstream endobj 269 0 obj <>/Metadata 17 0 R/Pages 266 0 R/StructTreeRoot 32 0 R/Type/Catalog>> endobj 270 0 obj <>/MediaBox[0 0 612 792]/Parent 266 0 R/Resources<>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI]>>/Rotate 0/StructParents 0/Tabs/S/Type/Page>> endobj 271 0 obj <>stream i received an offer for a lump sum payout based on the incorrect monthly pension. So assuming that you are not going to be sued, this is strictly a financial planning question. Illinois DOES NOT currently tax IRA withdrawals. %%EOF Retirement Policy Proponent Sen. Ben Cardin Announces His Own Retirement, The Opportunity and Obligation in Small Plan Coverage: Hubs Joe DeNoyior, Expert Excoriated in Excessive Fee Dismissal. If the lump sum is not anywhere near enough to generate the same monthly income as your pension, then if given the choice you will want to stick with the pension promise. [|c-Ur7fg Jlh>{.OQQ ,FuZr"\>`k_,&^[\z^ :;@. @V6l "{1 Q2) Do I have to take this lump sum buyout offer? You will receive your first bill in mid-November for your December coverage. In fact, at this years CWA T&T Leadership conference, our Research Department conducted a workshop on trends in Pension de-risking and bargaining. Q6) What company is the new annuity going to be with? Alcatel-Lucent has contracted with Deloitte to provide Financial and Tax Education Individual Sessions through a number of live group sessions across the U.S. and a series of webcasts, as well as the opportunity for individual sessions via phone appointments. To consistently deliver news, research and analysis to the executives who manage the flow of funds in the institutional investment market. Alcatel-Lucent Pension Functionality, London, completing a 100 billion ($123.7 million) buy-in at Pension Insurance Corp. Alcatel-Lucent enters into second buy-in for U.K. pension plan | Pensions & Investments - Brink's offers lump-sum payment to former employees Early this year Alcatel-Lucent announced they were investigating offering a voluntary lump sum buy-out of retiree pensions. Sign up and get the best of News delivered straight to your email inbox, free of charge. Plan assets are protected from being used for purposes other than providing benefits (or reasonable administrative expenses). xb```b``d`e`y |,@Q9F90*oZWcS;ik5H0frrx@,V"a"C8jqP If you are eligible for a lump sum, you may be able to get a significantly . *4w| sX8#.i_96"he@;(e[*'m'-Ksbzgh k@0n`76Cdi} fK0/h. {j 0000000016 00000 n Even if they are, that does not mean you should take it. You may also contact the Alcatel-Lucent Retiree Lump Sum Window Benefits Center at (866) 617-7164. Terry Savage is a nationally recognized expert on personal finance, the economy and the markets. These resources include group sessions, individual sessions and a Financial and Tax Education Tool. For us that would be December 2, 2015, because the lump-sum payout from AL-LU is set for November 2, 2015 (and we can't change that date). 0000007666 00000 n 0000012893 00000 n hb```\B cbM((-fu`` x';n\("v%u6~:8:F )T@TH HQAA|D,LG&[lnP%Vif^ %t,e`` %x( Beware of companies that extend the start of their payout beyond this normal 1 month, because this can have a big impact on your income from the annuity. Legislation and Politics. I'd point out however that not all wobble stools are bad. received a package in the mail and realized my pension was based on leaving the company oct, 1982. i left the company on 7/15/85. The lump sum amount, if not invested, will hold me for 13 yrs. In terms of the Nokia merger -- There is a fear since Nokia is a foreign company our pensions would no longer be protected. Menu burger Close thin Facebook Twitter Google plus Linked in Reddit Email arrow-right-sm arrow-right Loading Home Buying Calculators 17 0 obj <> endobj A schedule of those sessions is in the Financial and Tax Education Guide booklet provided in the program announcement package. %PDF-1.5 % Quantifying sustainability the numbers, the data, and the people, Valuing Banks: Hidden Losses Versus Assets, Research for Institutional Money Management, Global Fixed Income: Volatility and Uncertainty Here to Stay, For institutional investors, ETFs can make meeting liquidity needs easier, Gold: the most effective commodity investment, 2021 Investment Outlook | Investing Beyond the Pandemic: A Reset for Portfolios, Ten ways retirement plan professionals add value to plan sponsors. %%EOF The Program is not being offered to everyone. For example, hurricane & loss. Chicago, IL 60601, R.I. treasurer seeks transparency laws for church plans, Public pension funds adopt cost-sharing mechanisms to stem volatility, Avery Dennison to terminate U.S. pension plan, Sponsored Content: The Plan Sponsors Guide to Retirement Income, The Institutional Investors Guide to ESG Investing, The Plan Sponsor's Guide to Retirement Income, 2023 Defined Contribution East Conference, Alcatel-Lucent plans voluntary lump-sum offer in 2015, Celanese reveals $143 million in lump-sum payments, Lockheed Martin removes $529 million in PBO through lump-sum payments, Hospira pays $22 million in lump sums to former employees, GAO report calls for more disclosure to participants in lump-sum offers, Alcatel-Lucent completes buy-in for U.K. pension fund, eyes full buyout, Nokia to merge its 401(k) plan into Alcatel-Lucent's offering, Alcatel-Lucent enters into second buy-in for U.K. pension plan.

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stream Last week retirees received the first official notice of the lump sum offering. Recipients have the option to do nothing and will continue to receive their current monthly annuity payments. For media inquiries, call CWA Communications at 202-434-1168 or emailnews@cwa-union.org. ~n]A9iRD wkvU@HB8E8JKkt>:O) So, if you are evaluating whether or not to take the lump sum, you should not take the lump just because you are fearful about the Nokia merger. A1) Alcatel-Lucent is making available financial and tax education services through Deloitte, an objective, third party organization, at no cost to you. A recent call with a financial advisor in California is representative of a common question related to pension de-risking and lump sums. Alcatel-Lucent, Murray Hill, New Jersey, announced Friday it plans to extend an offer of an immediate lump-sum payment to about 32,000 retirees and former employees in its U.S. Inactive . To read about CWA Members, Leadership or Industries, visit ourAbout page. In mid-July, eligible retirees will be sent a Your Benefit Decision Kit, which will show the amount of the individuals lump sum payment and any new annuity options (if applicable) that are available to them under the Program. The materials contained herein are intended for instruction only and are not a substitute for professional advice. This will limit your search to that combination of words. Alcatel-Lucent, Murray Hill, New Jersey, announced Friday it plans to extend an offer of an immediate lump-sum payment to about 32,000 retirees and former employees in its U.S. Inactive Occupational Pension Plan. Everyones situation is different and unique to them. 0000011786 00000 n The only caveats with this purchase of an immediate annuityare that if you die in a year or two, the insurance company keeps the remaining balance in the annuity account, and the check is a fixed amount that will not go as far if we have an inflation problem. \?Q8za"mb CMz>GWcgeXSoGcg z!#}'`yOx"(:otxJ+;`Oc56d jnSf;Tm;H8b`i@5@(^hq;X8@d]EXr|w^>|K3Y6g9skZy&jteg}aBM\ju.Ks8XpOTi#Dl8gCx. 569 0 obj <>stream Get access to the news, research and analysis of events affecting the retirement and institutional money management businesses from a worldwide network of reporters and editors. And it's true that one dollar in 1990 purchasing power requires $2.73 today. hmk0"tzc7hh:(}&5se(|EV i"0W-kb@@.P|,rQfd\e.9thw)SV"\N2,]Ew9gmP?e? To read about CWA Members, Leadership or Industries, visit ourAbout page. In Column D, at your life. 0 For media inquiries, call CWA Communications at 202-434-1168 or emailnews@cwa-union.org. Examples of those protections are: The Company may not retroactively reduce those benefits, once they are vested. IF the company decided to terminate the plan they would have to do it under government guidelines. For media inquiries, call CWA Communications at 202-434-1168 or emailnews@cwa-union.org. Alcatel-Lucent announced it was being purchased by Nokia. If you have further questions once you receive your package of materials, please contact the Alcatel-Lucent Retiree Lump Sum Window Benefits Center at (866) 617-7164. 0000014070 00000 n A2) This offer is strictly voluntary. She writes a weekly personal finance column syndicated in major newspapers by Tribune Content Agency. 0000002947 00000 n This means that there are specific guidelines that must be followed under federal law. old, single, working fulltime, and in great health (knock on wood). Alcatel-Lucent Old Scheme, London, completed a 100 million ($123.7 million) buy-in with Boarding Insurance Core. One of them is offering lump sum buy-outs. In terms of the Nokia merger There is a fear since Nokia is a foreign company our pensions would no longer be protected. Payments are expected to be made from existing U.S. plan assets and we do not expect to make any contributions to U.S. plan assets in connection with either offer, Mr. Malfavon said. you the lump-sum payment. You DO NOT have to accept this offer. The permissions that Alcatel-Lucent (ALU) had to file to amend its Pension Plan to offer the lump sum program started long before the Nokia merger was announced. 0000009608 00000 n As we get more information, we will publish it on this site. It doesnt prevent a company from declaring bankruptcy. Early this year Alcatel-Lucent announced they were investigating offering a voluntary lump sum buy-out of retiree pensions. In fact Alcatel-Lucent was a foreign company and they could not take our pension funds. Health & Safety Fact Sheets ; Legislation & Politics ; News & Events Questions Regarding the Alcatel-Lucent Pension Lump Sum Buyout. Case of the Week: Do Roth Recharacterizations Still Exist? I need to continue to withdraw money from my pension to live. %PDF-1.4 % If I roll it over, say into an IRA, then the income becomes taxable. 0000015986 00000 n 0 Alcatel-Lucent also recommends recipients of the offer consult with their personal financial planner and/or tax advisor before making a decision. If you choose to do nothing, your current monthly pension payments will continue. (What you might be thinking is that an IRA is less secure from creditors than a pension payout, and that would be correct.) To search specifically for more than one word, put the search term in quotation marks. If you dont have a choice, but must take the lump sum offered, then I suggest rolling it to an IRA as described above. 40 0 obj <>stream Q1) Where can I get more information about this offer? Q7) What happens to my healthcare if I take this lump sum buy out? Thank y. Terry Says: Well, first of all, you have one fact wrong. Legacy Alcatel-Lucent Pension Plan If you are eligible for a legacy Alcatel-Lucent pension benefit, you can learn more about it through the YBR website. Biggest Lucent Pension Drop in a Generation. one-time, opportunity to convert their current monthly pension payment to a lump-sum payment (or, for some individuals, to change their pension payment option). That new car or luxurious vacation may not . The premium amount will still be based on what your current monthly pension amount is today. Cash Lump Sum Options for: Company Pension; Any State or Federal Government Pension; Military; Police and FIre Pension; Teacher Pension; Call Us Toll Free: 1-800-853-5640 to reach a representative who will discuss your lump sum pension payment and retirement annuity options with you. All of this is costly to the company. Pros and Cons of Lump Sum Pension Payouts. More on Alcatel-Lucent retiree and pension issues and the acquisition by Nokia. (And, you will understand why the company wants to end the pension promise because it was too generous.). Bottom Line: Rising rates reduce lump sums. Early this year Alcatel-Lucent announced they were investigating offering a voluntary lump sum buy-out of retiree pensions. The Program Window is only in effect beginning July 20, 2015 and ends at 11:59 p.m. (EDT) on September 25, 2015. But keep in mind that a lump sum pension payout makes it easier to overspend in retirement. Learn more here. A4) What page 15 of the Financial and Tax book is referring to is that if Alcatel-Lucent declares bankruptcy and does not have enough money to cover the liabilities of the plan the PBGC would take over the plan. hbbd```b``z "kd(d? Alcatel-Lucent, Murray Hill, N.J., announced Friday it plans to extend an offer of an immediate lump-sum payment to about 32,000 retirees and former employees in its U.S. Inactive. We strongly advise you to gather as much information as possible and to consult with your own personal financial planner, legal advisor and/or tax advisor. But even if you follow the recommended plan,there will be no guarantees that the payouts will last your lifetime as would be the case with a pension. 0000001958 00000 n In fact these two announcements are not connected. under the Plan to a one-time, lump-sum payment. Examples of those protections are: The Company may not retroactively reduce those benefits, once they are vested. A7) If your healthcare premium is currently being deducted from your monthly pension check and you convert your monthly pension payments to a lump sum payment during the program, you will be billed directly for your healthcare premium and you MUST pay the premium in order to continue to receive your healthcare. 3QxbOJZL3 i`/ 4(yKH.WT=\}LN8V^*~& Social Security Solvency: Is it Really That Bad? r?Yw-g{A8se? Jx^m!xDC8p:PI((`![G EkrQXADX Workers' Rights Button submenu. endstream endobj startxref 0000001121 00000 n A6) The new annuity is a recalculation, for certain individuals, of the old calculations and is still administered by the pension plan. In fact that is why the CWA had to lobby for expanded legislation to continue to provide for collectively bargained medical and death benefits from the Plan. Despite a July 9 announcement that the IRS intends to eliminate lump-sum windows for retirees already receiving annuity payments, the Alcatel-Lucent lump-sum window is allowed to proceed under a special prenotice grandfather clause for programs announced prior to July 9. To: Formerly Represented Retirees of Alcatel-Lucent, Subject: Questions Regarding the Alcatel-Lucent Pension Lump Sum Buyout. I am 64 yrs. It is a sizable amount of money. That will get you a guaranteed stream of (fully taxable) income for as long as you live. endstream endobj 545 0 obj <>/Metadata 74 0 R/Pages 542 0 R/StructTreeRoot 124 0 R/Type/Catalog/ViewerPreferences 554 0 R>> endobj 546 0 obj <>/MediaBox[0 0 612 792]/Parent 542 0 R/Resources<>/Font<>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI]/XObject<>>>/Rotate 0/StructParents 0/Tabs/S/Type/Page>> endobj 547 0 obj <>stream Some eligible former employees also had the opportunity to change their existing annuity option to a different annuity option. I have to decide by Sept. 11, 2015. |@5=Ni!_DKZ89_<9Fa0MU)C2:)}yH0u g>.]uj&G([mRgm=G-MA5@au%l :vz,!MM@\Torx9 d:'FK]M2| Traditionally, when interest rates rise by 1% the amount in an Lucent employee's lump-sum will drop by 8 - 12%. Questions Regarding the Alcatel-Lucent Rent Lump Sum Purchase Alcatel-Lucent Pension Lump Sum Buyout | Communications Workers of America | Nokia to merge its 401(k) plan into Alcatel-Lucent's offering 0000014974 00000 n Therefore, the company cannot just take money from the pension plan and use it for other things. This is an extremely important decision and it requires careful consideration. web design and development by new target, inc. TAJ6LuR.u(NdLN_Ht)txF%K.)/|q1oO|uB+t{?ZQWH^ hsPZ=+,wz/ Former employee, ATT/Lucent/Alcatel-Lucent is offering a lump sum buyout of our pensions. After all, getting a huge influx of cash into your account upon retirement would make anyone jump for joy. Alcatel-Lucent, Murray Hillary, N.J., plans on make a unpaid lump-sum offer in 2015 until about 45,000 U.S. retirees and former employees vested in its U.S. defined benefit pension funds, according to a 6-K filing with the U.S. Securities and Exchange Order. One more point, just because our pension are protected now, we should not assume it will always be this way. I have many questions. Privacy PolicyTerms of UseCopyright. You have until September to decide and you should use the time to consult with someone who can review your individual situation. The lump-sum window runs from July 20 through September 25 and is completely voluntary. As we get more information, we will publish it on this site. The company said in its fourth-quarter earnings release that the offer, to take place in the fourth quarter of 2015, will run concurrently with a previously announced offer for retirees in its U.S. Management Pension Plan. Below the lump sum value in Column C, copy and paste the annual pension payout into every row for each year you live, till your life expectancy used in step 1. i receive a pension from alcatel-lucent. Again, this is an extremely important decision and it requires careful consideration. In fact Alcatel-Lucent was a foreign company and they could not take our pension funds. endstream endobj 273 0 obj <>stream The Pension Protection Act helps to ensure the plan is appropriately funded. The attachment labeled Lump Sum Program Announcement identifies who is and is not eligible. To do so, however, the employer must prove to a bankruptcy court or to the PBGC . The CWA actuaries will review them to be sure that how they are being calculated is correct. If you are not familiar with these principles, here are some quick tips. A lump sum payout is the more exciting option of the two. Case of the Week: Plan Establishment and Compensation, Case of the Week: Faulty Form 5500 Filings and Reasonable Cause, BREAKING NEWS: Announcing the 2022 NAPA Top DC Advisor Teams, Breaking News: Biden Vetoes Congressional Resolution Blocking ESG Rule, Jerry Schlichter and Tom Clark Fiduciary Litigation Debate: DC Pension Geeks Podcast, Brian Graff Has a Stark Warning for Advisors: NAPA 401(k) Summit, 401(k)s Increasingly Under Attack in Wake of SECURE 2.0 Passage. It is in the companys self-interest to keep the pension plan healthy because if it is not, they cannot pay for retiree medical from the plan and they have a contract saying they will pay retiree medical through the end of 2019. Copyright 2023by NAPA, Compliance Administrator (TPA) Evaluation. There are many things you need to take into account, many of which are described in the packet (taxes, your health, your age, your dependents, etc.) Alcatel-Lucent announced it was being purchased by Nokia. A3) The language on page 10 is standard language. Payments are expected to be made from existing U.S. plan assets and we do not expect to make any contributions to U.S. plan assets in connection with either offer, Mr. Malfavon said. We strongly advise you to gather as much information as possible and to consult with your own personal financial planner, legal advisor and/or tax advisor. The CWA actuaries will review them to be sure that how they are being calculated is correct. Alcatel-Lucent informed the CWA National yesterday that they intend to make available to certain former employees, surviving beneficiaries and alternate payees, who are currently receiving monthly pension payments from the Lucent Technologies Inc. Pension Plan (the Plan), a Lucent Retiree Lump Sum Window Program (the Program). On the one hand, you could roll the lump sum into an IRA, with no tax consequences, and then manage the investments and a withdrawal plan (with a certain Minimum Required Distribution) every year. Tenth Floor You may also contact the Alcatel-Lucent Retiree Lump Sum Window Benefits Center at (866) 617-7164. 0000007454 00000 n Following are the questions, with the answers, that we have received to date. To search for a combination of terms, use quotations and the & symbol. tS Therefore, the company cannot just take money from the pension plan and use it for other things. 0000008051 00000 n The ERISA consultants at the Learning Center Resource Desk, which is available through Columbia Threadneedle Investments, regularly receive calls from financial advisors on a broad array of technical topics related to IRAs and qualified retirement plans. Suite 3200 Figuring this out is very simple. `lsIf8 y[e?f-IE2.H54&%6h2SQ HUE{RV3@@ 0000000776 00000 n for subscribing, you are all set for your money saving tips. About 55,000 Holy cow, Nevin, you wrote a white paper! 2023 Communications Workers of America, AFL-CIO, CLC All Rights Reserved | Site Map | Privacy Policy, To: Alcatel- Lucent Formerly Represented Retirees, Surviving Beneficiaries and Alternate Payees, RE: Lump Sum Buy Out Of Monthly Pension Payments, Alcatel-Lucent Lump Sum Buy Out Of Monthly Pension Payments. It brings the total number of retirees and former employees who have yet to retire who will receive the offer to about 74,000, Marco Malfavon, company spokesman, said in an e-mailed reply to questions. 0000014929 00000 n 2023 Communications Workers of America, AFL-CIO, CLC All Rights Reserved | Site Map | Privacy Policy, More on Alcatel-Lucent Retiree and Pension Issues and the acquisition of Nokia. Get Email Updates; Receive Text Alerts; Detect Your Local; Search; Services Laborer of Worldwide . Q3) Page 10 of the Alcatel-Lucent Retiree Lump Sum Window booklet says the company has rights to terminate either plan, etc. 2015 Columbia Management Investment Advisers, LLC. Today, the pension plan is covered by ERISA and is protected by the Pension Benefit Guaranty Corporation (PBGC). 0000010715 00000 n Columbia Threadneedle Investments (Columbia Threadneedle) is the global brand name of the Columbia and Threadneedle group of companies. 0000017395 00000 n For a standard termination the company would have to show the PBGC that the plan has enough money to pay all the benefits owed to participants. The National Association of Plan Advisors is a non-profit professional society. These mailings detail a one-time opportunity to convert their remaining annuity payments under the Alcatel-Lucent Retirement Income Plan or Lucent Technologies Inc. Pension Plan to a lump-sum payment. endstream endobj 18 0 obj <> endobj 19 0 obj <>/ProcSet[/PDF/Text]/ExtGState<>>>/Type/Page>> endobj 20 0 obj <> endobj 21 0 obj <> endobj 22 0 obj <> endobj 23 0 obj <> endobj 24 0 obj <>stream 0000001515 00000 n HWmkF}J\l|MiJ(R~H'g![3(!yrqK.//n+BS2bj~BT g8neSlI9oC9/rgczB7e DC4eUS;,'uq_6#:87lS1YA(V[cEUXq#\"?v,|nSIE%v](4h vZJz'^ BUT, if you want some certainty about income, then you might take a portion of the money and buy one of those immediate annuities inside your IRA. So, if you are evaluating whether or not to take the lump sum, you should not take the lump just because you are fearful about the Nokia merger. In fact these two announcements are not connected. "It is an excuse to put money into their underfunded plan . More on Alcatel-Lucent retiree and pension issues and the acquisition by Nokia. You DO NOT have to accept this offer. For specifics, click on the employer's name to see the company's press release, SEC filing, or news story announcing the change (some links may expire). Synopsis of Material Modifications Alcatel-Lucent Retirement . 130 E. Randolph St. In fact, at this years CWA T&T Leadership conference, our Research Department conducted a workshop on trends in Pension de-risking and bargaining. Q2) Do I have to take this lump sum buyout offer? What about the Pension Protection Act? 553 0 obj <>/Filter/FlateDecode/ID[<94B3386967048548A045BA5BD9299ADC><31856CD454ED2C479B066D538F2F01B1>]/Index[544 26]/Info 543 0 R/Length 70/Prev 342004/Root 545 0 R/Size 570/Type/XRef/W[1 3 1]>>stream The advisor asked: What are the details around Alcatel-Lucents lump sum offer to former employees?. endstream endobj startxref 0000002597 00000 n %PDF-1.7 % Early this year Alcatel-Lucent announced they were investigating offering a voluntary lump sum buy-out of retiree pensions. It brings the total number of retirees and former employees who have yet to retire who will receive the offer to about 74,000, Marco Malfavon, company spokesman, said in an e-mailed reply to questions. 0000008372 00000 n In fact these two announcements are not connected. One of them is offering lump sum buy-outs. endstream endobj 269 0 obj <>/Metadata 17 0 R/Pages 266 0 R/StructTreeRoot 32 0 R/Type/Catalog>> endobj 270 0 obj <>/MediaBox[0 0 612 792]/Parent 266 0 R/Resources<>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI]>>/Rotate 0/StructParents 0/Tabs/S/Type/Page>> endobj 271 0 obj <>stream i received an offer for a lump sum payout based on the incorrect monthly pension. So assuming that you are not going to be sued, this is strictly a financial planning question. Illinois DOES NOT currently tax IRA withdrawals. %%EOF Retirement Policy Proponent Sen. Ben Cardin Announces His Own Retirement, The Opportunity and Obligation in Small Plan Coverage: Hubs Joe DeNoyior, Expert Excoriated in Excessive Fee Dismissal. If the lump sum is not anywhere near enough to generate the same monthly income as your pension, then if given the choice you will want to stick with the pension promise. [|c-Ur7fg Jlh>{.OQQ ,FuZr"\>`k_,&^[\z^ :;@. @V6l "{1 Q2) Do I have to take this lump sum buyout offer? You will receive your first bill in mid-November for your December coverage. In fact, at this years CWA T&T Leadership conference, our Research Department conducted a workshop on trends in Pension de-risking and bargaining. Q6) What company is the new annuity going to be with? Alcatel-Lucent has contracted with Deloitte to provide Financial and Tax Education Individual Sessions through a number of live group sessions across the U.S. and a series of webcasts, as well as the opportunity for individual sessions via phone appointments. To consistently deliver news, research and analysis to the executives who manage the flow of funds in the institutional investment market. Alcatel-Lucent Pension Functionality, London, completing a 100 billion ($123.7 million) buy-in at Pension Insurance Corp. Alcatel-Lucent enters into second buy-in for U.K. pension plan | Pensions & Investments - Brink's offers lump-sum payment to former employees Early this year Alcatel-Lucent announced they were investigating offering a voluntary lump sum buy-out of retiree pensions. Sign up and get the best of News delivered straight to your email inbox, free of charge. Plan assets are protected from being used for purposes other than providing benefits (or reasonable administrative expenses). xb```b``d`e`y |,@Q9F90*oZWcS;ik5H0frrx@,V"a"C8jqP If you are eligible for a lump sum, you may be able to get a significantly . *4w| sX8#.i_96"he@;(e[*'m'-Ksbzgh k@0n`76Cdi} fK0/h. {j 0000000016 00000 n Even if they are, that does not mean you should take it. You may also contact the Alcatel-Lucent Retiree Lump Sum Window Benefits Center at (866) 617-7164. Terry Savage is a nationally recognized expert on personal finance, the economy and the markets. These resources include group sessions, individual sessions and a Financial and Tax Education Tool. For us that would be December 2, 2015, because the lump-sum payout from AL-LU is set for November 2, 2015 (and we can't change that date). 0000007666 00000 n 0000012893 00000 n hb```\B cbM((-fu`` x';n\("v%u6~:8:F )T@TH HQAA|D,LG&[lnP%Vif^ %t,e`` %x( Beware of companies that extend the start of their payout beyond this normal 1 month, because this can have a big impact on your income from the annuity. Legislation and Politics. I'd point out however that not all wobble stools are bad. received a package in the mail and realized my pension was based on leaving the company oct, 1982. i left the company on 7/15/85. The lump sum amount, if not invested, will hold me for 13 yrs. In terms of the Nokia merger -- There is a fear since Nokia is a foreign company our pensions would no longer be protected. Menu burger Close thin Facebook Twitter Google plus Linked in Reddit Email arrow-right-sm arrow-right Loading Home Buying Calculators 17 0 obj <> endobj A schedule of those sessions is in the Financial and Tax Education Guide booklet provided in the program announcement package. %PDF-1.5 % Quantifying sustainability the numbers, the data, and the people, Valuing Banks: Hidden Losses Versus Assets, Research for Institutional Money Management, Global Fixed Income: Volatility and Uncertainty Here to Stay, For institutional investors, ETFs can make meeting liquidity needs easier, Gold: the most effective commodity investment, 2021 Investment Outlook | Investing Beyond the Pandemic: A Reset for Portfolios, Ten ways retirement plan professionals add value to plan sponsors. %%EOF The Program is not being offered to everyone. For example, hurricane & loss. Chicago, IL 60601, R.I. treasurer seeks transparency laws for church plans, Public pension funds adopt cost-sharing mechanisms to stem volatility, Avery Dennison to terminate U.S. pension plan, Sponsored Content: The Plan Sponsors Guide to Retirement Income, The Institutional Investors Guide to ESG Investing, The Plan Sponsor's Guide to Retirement Income, 2023 Defined Contribution East Conference, Alcatel-Lucent plans voluntary lump-sum offer in 2015, Celanese reveals $143 million in lump-sum payments, Lockheed Martin removes $529 million in PBO through lump-sum payments, Hospira pays $22 million in lump sums to former employees, GAO report calls for more disclosure to participants in lump-sum offers, Alcatel-Lucent completes buy-in for U.K. pension fund, eyes full buyout, Nokia to merge its 401(k) plan into Alcatel-Lucent's offering, Alcatel-Lucent enters into second buy-in for U.K. pension plan. %20Alex Turner And Miles Kane Interview, Halo Mcc How To Enable Anti Cheat, Filebeat '' Autodiscover Processors, Digicel Fiji Coverage Map, Michael Schumacher 2021 Photo, Articles A
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