Alcatel-Lucent plans voluntary lump-sum offer in 2015 I have to decide by Sept. 11, 2015. 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. 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 The Columbus Dispatch Tuesday February 16, 2016 5:00 AM. Again, this is an extremely important decision and it requires careful consideration. You can have automatic monthly withdrawals, or take money out at any time. endstream endobj 273 0 obj <>stream Two announcements have been made this year by Alcatel-Lucent and many of you might think they are connected. You may also contact the Alcatel-Lucent Retiree Lump Sum Window Benefits Center at (866) 617-7164. hb```\B cbM((-fu`` x';n\("v%u6~:8:F )T@TH HQAA|D,LG&[lnP%Vif^ %t,e`` %x( Information about your Pension Plan benefit is also accessible, and pension transactions can be initiated, online through the Your Benefits Resources (YBR) website at http://resources.hewitt.com/nokia, 24 hours a day, seven (What you might be thinking is that an IRA is less secure from creditors than a pension payout, and that would be correct.) !J,3pNM,A|f5\mCl]) Pv&hhy 6u!2|)z9F_!lE^wxDaOo8^ %SE91q45),lEQN8:O $o2dhcflYK fgOlK: 2SYu*q"H3;Ydi37t6K^4nb8o?/zYK (And, you will understand why the company wants to end the pension promise because it was too generous.). under the Plan to a one-time, lump-sum payment. Alcatel-Lucent Pension Lump Sum Buyout | Communications Workers of hbbd```b``A$Sd9&@A vX{> 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. For media inquiries, call CWA Communications at 202-434-1168 or emailnews@cwa-union.org. Legislation and Politics. Plan assets are protected from being used for purposes other than providing benefits (or reasonable administrative expenses). Therefore, the company cannot just take money from the pension plan and use it for other things. In fact these two announcements are not connected. A5) The new ruling by the IRS addresses discontinuing offering a lump sum buy out in certain circumstances going forward. More on Alcatel-Lucent Retiree and Pension Issues and the acquisition I am 64 yrs. She writes a weekly personal finance column syndicated in major newspapers by Tribune Content Agency. 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. I need to continue to withdraw money from my pension to live. About Change submenu. 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. BIs Article search uses Boolean search capabilities. Eligible former employees are NOT required to make any changes to how or when they receive their Plan benefits. ~n]A9iRD wkvU@HB8E8JKkt>:O) 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. What You Can Do on the YBR Website If you are now receiving benefits: View your payment confirmations and history; Biggest Lucent Pension Drop in a Generation. endstream endobj 272 0 obj <>stream Q6) What company is the new annuity going to be with? As we get more information, we will publish it on this site. It doesnt prevent a company from declaring bankruptcy. In terms of the Nokia merger There is a fear since Nokia is a foreign company our pensions would no longer be protected. PDF Alcatel Data Networks Inc. Retirement Pension Plan - BenefitAnswers Plus It is a sizable amount of money. I need to continue to withdraw money from my pension to live. The Lucent Retirees Message Board-Transfer of pension fund from What about the Pension Protection Act? Companies that are offering lump-sum pension buyouts - Pension Rights I have many questions. xref 0000014929 00000 n 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.) web design and development by new target, inc. Sign up and get the best of News delivered straight to your email inbox, free of charge. sw Currently the LTPP is funded at approximately 149%. PDF Annual Funding Notice Alcatel-Lucent Retirement Income Plan 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. In a lump sum buy-out the company is paying the present value of the pension amount so that it takes the liability off their books, which means they no longer have to pay PBGC premiums or manage the money themselves. View all Financial Planning / Retirement questions. One more point, just because our pension are protected now, we should not assume it will always be this way. Former employee, ATT/Lucent/Alcatel-Lucent is offering a lump sum buyout of our pensions. You may also contact the Nokia Benefits Resource Center. 0000002947 00000 n Pros and Cons of Lump Sum Pension Payouts. How to Avoid Taxes on Lump Sum Pension Payout - SmartAsset Can the company terminate the pension plan? [|c-Ur7fg Jlh>{.OQQ ,FuZr"\>`k_,&^[\z^ :;@. @V6l "{1 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. 0000009608 00000 n In Column D, at your life. In fact, at this years CWA T&T Leadership conference, our Research Department conducted a workshop on trends in Pension de-risking and bargaining. In addition, Nokia will most probably create a Nokia (USA) subsidiary which would be completely subject to US laws. Alcatel-Lucent announced it was being purchased by Nokia. The company said in its fourth-quarter 2014 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. Sign up to receive Terrys free newsletter!! Alcatel-Lucent also recommends recipients of the offer consult with their personal financial planner and/or tax advisor before making a decision. Terry Savage is a nationally recognized expert on personal finance, the economy and the markets. Vm}O%TimaUMG60)f 6(jvR NEZ;[R!m))62Kr)7;yPedf`zms Last week retirees received the first official notice of the lump sum offering. This will limit your search to that combination of words. For media inquiries, call CWA Communications at 202-434-1168 or emailnews@cwa-union.org. PDF Lucent Technologies Inc. Pension Plan Summary of Material Modifications You DO NOT have to accept this offer. Perhaps your real question is whether the buyout amount if invested in a different immediate annuity (a check a month for life, fixed) is enough to get you a check equivalent to the promised lifetime pension check. Skip up main content . 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. You DO NOT have to accept this offer. 2015 Columbia Management Investment Advisers, LLC. 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. Thank y. Terry Says: Well, first of all, you have one fact wrong. We have raised the question with Nokia. That new car or luxurious vacation may not . 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. Bottom Line: Rising rates reduce lump sums. Advisor action items: Talk the your Alcatel-Lucent clients who may be affected. This means that there are specific guidelines that must be followed under federal law. Rob Kozlowski writes for Pensions & Investments, a sister publication of Business Insurance. Suite 3200 %%EOF 685 Third Avenue It is a sizable amount of money. This one-time opportunity--called the Alcatel-Lucent Retiree Lump-Sum Window Program (the "Program")--formally began on July 20, 2015 and ended on September 25, 2015. Early this year Alcatel-Lucent announced they were investigating offering a voluntary lump sum buy-out of retiree pensions. Today, the pension plan is covered by ERISA and is protected by the Pension Benefit Guaranty Corporation (PBGC). Q4) Also on page 15 in the Financial & Tax booklet, provided by the company, it says if they go broke we get nothing in a pension. Get Email Updates; Receive Text Alerts; Detect Your Local; Search; Services Laborer of Worldwide . 268 0 obj <> endobj 0000001515 00000 n 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. 0000007666 00000 n How to Avoid Taxes on Lump Sum Pension Payout - SmartAsset You can avoid taxes on a lump sum by rolling it over into an individual retirement account (IRA) or another eligible retirement plan. 0000017395 00000 n If I roll it over, say into an IRA, then the income becomes taxable. Below is a list of employers that have announced that they are offering lump-sum pension buyouts to certain groups of employees, former employees, or retirees. 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. 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. Annuity experiences with Lump Sum - The Lucent Retirees Message Board sure enough, the lack of stability does bring a certain focus - which, to your point, can be Great article. One more point, just because our pension are protected now, we should not assume it will always be this way. Their answer is that there are no plans for a cost-of-living raise. Currently IL does not charge on pension income? You have until September to decide and you should use the time to consult with someone who can review your individual situation. old, single, working fulltime, and in great health (knock on wood). "9:@$;dIs0&w@qY }*#l8l 0 Alcatel-Lucent Lump Sum Buy Out Of Monthly Pension Payments The lump-sum window runs from July 20 through September 25 and is completely voluntary. Q1) Where can I get more information about this offer? As we get more information, we will publish it on this site. they have known this for over 30 days and i am not making any headway with getting it corrected. After all, getting a huge influx of cash into your account upon retirement would make anyone jump for joy. xoH-Ge/+Uj%_lQ8B\R,Nk;Od.''M[fy%'mNd/i(-*i_EvS4H.fx3Vpe The attached information (cover letterprogram announcementFTE Guide) will be mailed by Alcatel-Lucent to eligible Plan participants beginning tomorrow, Friday, June 26, 2015. 0 Any money left over in the fund the company would have to pay a penalty tax on. Alcatel-Lucent to expand lump-sum offer to 32,000 more participants In fact, at this years CWA T&T Leadership conference, our Research Department conducted a workshop on trends in Pension de-risking and bargaining. To read about CWA Members, Leadership or Industries, visit ourAbout page. 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. A schedule of those sessions is in the Financial and Tax Education Guide booklet provided in the program announcement package. Alcatel-Lucent Pension Lump Sum Buyout - Communications Workers of America 2023 Communications Workers of America, AFL-CIO, CLC All Rights Reserved | Site Map | Privacy Policy. They could do that by purchasing annuities through an insurance company. My son in Corby, your life and leadership have been an inspiration to us all. A2) This offer is strictly voluntary. xb```b``d`e`y |,@Q9F90*oZWcS;ik5H0frrx@,V"a"C8jqP hmk0"tzc7hh:(}&5se(|EV i"0W-kb@@.P|,rQfd\e.9thw)SV"\N2,]Ew9gmP?e? This is an extremely important decision and it requires careful consideration. That will get you a guaranteed stream of (fully taxable) income for as long as you live. You can direct any service of legal process related to the Pension Plan to: The Alcatel-Lucent Employee Benefits Committee at Alcatel-Lucent, Room 7C-415, 600-700 Mountain Avenue, Murray Hill, NJ 07974, or The trustee of the Pension Plan (see "Pension Trust Fund"). PBGC proposes pension plan risk-transfer disclosure requirement, Ford pension plan funding holds steady in 2014, COPYRIGHT 2023 BUSINESS INSURANCE HOLDINGS. The Program is not being offered to everyone. As of Dec. 31, 2013, the U.S. pension funds had $30.1 billion in assets and $26.2 billion in projected benefit obligations, for a funding ratio of 115%, according to the companys most recent 20-F filing. For example, workers compensation. And it's true that one dollar in 1990 purchasing power requires $2.73 today. Lucent? How to Navigate Pension Changes - The Retirement Group In addition, Nokia will most probably create a Nokia (USA) subsidiary which would be completely subject to US laws. for subscribing, you are all set for your money saving tips. %PDF-1.4 % The Pension Protection Act helps to ensure the plan is appropriately funded. There are many things you need to take into account, many of which are described in the packet (taxes, your health, your age, your dependents, etc.) 0000008372 00000 n a835gQ00]=8gVYROU4CCXghhr'Hcbo2.0k7.8-1pC*A#=W[K!F$R# r?Yw-g{A8se? Jx^m!xDC8p:PI((`![G EkrQXADX What asset class is best for corporate plans' growth investments when using LDI? The lump-sum window runs from July 20 through September 25 and is completely voluntary. Or you could wait a few years to buy an. Leadership. you the lump-sum payment. %PDF-1.5 % 0000015986 00000 n The lump sum amount, if not invested, will hold me for 13 yrs. If you choose to do nothing, your current monthly pension payments will continue. Copyright 2023by NAPA, Compliance Administrator (TPA) Evaluation. *4w| sX8#.i_96"he@;(e[*'m'-Ksbzgh k@0n`76Cdi} fK0/h. {j Pension lump sum buyout - Terry Savage To search specifically for more than one word, put the search term in quotation marks. Nokia to merge its 401(k) plan into Alcatel-Lucent's offering startxref Privacy PolicyTerms of UseCopyright. 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. Alcatel-Lucent Retiree Lump Sum Window Benefits Center at (866) 617-7164. \?Q8za"mb CMz>GWcgeXSoGcg z!#}'`yOx"(:otxJ+;`Oc56d jnSf;Tm;H8b`i@5@(^hq;X8@d]EXr|w^>|K3Y6g9skZy&jteg}aBM\ju.Ks8XpOTi#Dl8gCx. 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. So assuming that you are not going to be sued, this is strictly a financial planning question. 0000000776 00000 n Health & Safety Fact Sheets ; Legislation & Politics ; News & Events Recipients have the option to do nothing and will continue to receive their current monthly annuity payments. Approximately 75,000 eligible former employees, surviving beneficiaries and alternate payees of Alcatel-Lucent have begun receiving formal lump-sum window notices. This offer, called the Alcatel-Lucent Retiree Lump-Sum Window Program, formally began on July 20, 2015 and ended on September 25, 2015. Even if they are, that does not mean you should take it. Alcatel-Lucent announced it was being purchased by Nokia. 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. 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. Examples of those protections are: The Company may not retroactively reduce those benefits, once they are vested. Workers' Rights Button submenu. Pension Plans offer lump sums periodically, but typically change once a year. To: Formerly Represented Retirees of Alcatel-Lucent, Subject: Questions Regarding the Alcatel-Lucent Pension Lump Sum Buyout. The materials contained herein are intended for instruction only and are not a substitute for professional advice. A decision by telecom company Alcatel-Lucent to move $3 billion out of a well-funded pension fund for retired workers into a fund for managers has union leaders worried about the long-term stability of the retirees' fund. You can make some investments that are likely to generate growth and income to support your retirement needs. 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 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. 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. Q2) Do I have to take this lump sum buyout offer? old, single, working fulltime, and in great health (knock on wood). 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. endstream endobj 548 0 obj <>stream Alcatel-Lucent Pension Lump Sum Buyout | Communications Workers of 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. i received an offer for a lump sum payout based on the incorrect monthly pension. 40 0 obj <>stream Everyones situation is different and unique to them. Alcatel-Lucent Pension Functionality, London, completing a 100 billion ($123.7 million) buy-in at Pension Insurance Corp. Alcatel-Lucent enters into second buy-in for U.K. pension plan | Pensions & Investments - Brink's offers lump-sum payment to former employees What questions should I be asking? To do so, however, the employer must prove to a bankruptcy court or to the PBGC . Everyones situation is different and unique to them. Despite a July 9 announcement that the IRS intends to eliminate lump-sum windows for retirees already receiving annuity payments, the Alcatel-Lucent lump-sum window is allowed to proceed under a special prenotice grandfather clause for programs announced prior to July 9. Social Security Solvency: Is it Really That Bad? 0 I Receive a Pension From Alcatel-lucent. Received a Package There are many things you need to take into account, many of which are described in the packet (taxes, your health, your age, your dependents, etc.) Alcatel-Lucent Retiree Pensions - CWA 4900 In fact that is why the CWA had to lobby for expanded legislation to continue to provide for collectively bargained medical and death benefits from the Plan. Plan assets are protected from being used for purposes other than providing benefits (or reasonable administrative expenses). xuSn0>DBH I$}C.SwB#s_u_0Bt lV:~D[S84eF}dKq_ ={K~922&1BOz:`. 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. These resources include group sessions, individual sessions and a Financial and Tax Education Tool. 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. 569 0 obj <>stream Illinois DOES NOT currently tax IRA withdrawals. HWmkF}J\l|MiJ(R~H'gtxF%K.)/|q1oO|uB+t{?ZQWH^ hsPZ=+,wz/ Your guidance is very much appreciated. 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. A lump sum pension distribution offers the flexibility of being able to spend or invest your retirement savings any way you see fit. 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. Retirement Savings & Pension - BenefitAnswers Plus One of them is offering lump sum buy-outs. 0000002597 00000 n The National Association of Plan Advisors is a non-profit professional society. History. endstream endobj startxref 0000010715 00000 n You will see offerings frm major insurance companies giving you a monthly payout. |@5=Ni!_DKZ89_<9Fa0MU)C2:)}yH0u g>.]uj&G([mRgm=G-MA5@au%l :vz,!MM@\Torx9 d:'FK]M2| I'd point out however that not all wobble stools are bad. There are many politicians in the pockets of corporate America who want to weaken pension rules, attack Social Security and Medicare and strip Unions of their ability to bargain. 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. Some former employees might also have the opportunity to change their current annuity option to a different annuity form. Choose your news we will deliver. If the plan is not fully-funded, the employer may apply for a distress termination if the employer is in financial distress. In fact Alcatel-Lucent was a foreign company and they could not take our pension funds. Alcatel-Lucent Lump Sum Pension Offer | Communications Workers of America Used with permission. Q7) What happens to my healthcare if I take this lump sum buy out? 0000014974 00000 n i receive a pension from alcatel-lucent. Questions Regarding the Alcatel-Lucent Pension Lump Sum Buyout. 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). That is not necessarily true. 130 E. Randolph St. Jobs, Health Care & Retirement Security . %PDF-1.7 % Lump-Sum vs. Regular Pension Payments: What's the Difference? hbbd```b``z "kd(d? Interest rates have increased rapidly over the course of 2022, and if you receive your Lucent pension as a lump sum this reduces the value. If you roll to Fidelity, Vanguard, or T. Rowe Price they will handle both the investment and withdrawal planning for you. To search for a combination of terms, use quotations and the & symbol. 0000002392 00000 n The purpose of the Program is to offer eligible former employees the ability to convert their current monthly pension payments into a one-time lump sum payment. %%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.
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