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. Former employee, ATT/Lucent/Alcatel-Lucent is offering a lump sum buyout of our pensions. 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.) A5) The new ruling by the IRS addresses discontinuing offering a lump sum buy out in certain circumstances going forward. 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. I have many questions. 0000010715 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. The advisor asked: What are the details around Alcatel-Lucents lump sum offer to former employees?. A2) This offer is strictly voluntary. 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. PBGC proposes pension plan risk-transfer disclosure requirement, Ford pension plan funding holds steady in 2014, COPYRIGHT 2023 BUSINESS INSURANCE HOLDINGS. 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. Or you could wait a few years to buy an. xuSn0>DBH I$}C.SwB#s_u_0Bt lV:~D[S84eF}dKq_ ={K~922&1BOz:`. A2) This offer is strictly voluntary. The lump-sum window runs from July 20 through September 25 and is completely voluntary. 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). Even if they are, that does not mean you should take it. Recipients have the option to do nothing and will continue to receive their current monthly annuity payments. 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. 0000015024 00000 n 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. About 55,000 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. Q2) Do I have to take this lump sum buyout offer? A lump sum payout is the more exciting option of the two. 0000008372 00000 n New York, NY 10017-4036, Chicago Office 0000001121 00000 n What You Can Do on the YBR Website If you are now receiving benefits: View your payment confirmations and history; Alcatel-Lucent also recommends recipients of the offer consult with their personal financial planner and/or tax advisor before making a decision. But keep in mind that a lump sum pension payout makes it easier to overspend in retirement. Information and opinions provided by third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by Columbia Threadneedle. Hello Terry, tS Just go to www.immediateannuities.com, and insert your age, gender, state, and the lump sum amount you have to invest. Q7) What happens to my healthcare if I take this lump sum buy out? sure enough, the lack of stability does bring a certain focus - which, to your point, can be Great article. 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. Get Email Updates; Receive Text Alerts; Detect Your Local; Search; Services Laborer of Worldwide . In fact these two announcements are not connected. endstream endobj startxref Vm}O%TimaUMG60)f 6(jvR NEZ;[R!m))62Kr)7;yPedf`zms 0000001515 00000 n (And, you will understand why the company wants to end the pension promise because it was too generous.). In addition, Nokia will most probably create a Nokia (USA) subsidiary which would be completely subject to US laws. You can have automatic monthly withdrawals, or take money out at any time. %PDF-1.5 % The Program is not being offered to everyone. What about the Pension Protection Act? Main Office The attached information (cover letterprogram announcementFTE Guide) will be mailed by Alcatel-Lucent to eligible Plan participants beginning tomorrow, Friday, June 26, 2015. 544 0 obj <> endobj startxref 2015 Columbia Management Investment Advisers, LLC. The attachment labeled Lump Sum Program Announcement identifies who is and is not eligible. Kh#3w3g@|9%lQ8zRO 0vmb|@f)4|b;'.o04}* >~A=(zZm/y]?E}r*e{,5i03=H9`}p 0cg atZ2$4^a1'J>gfr~0K2]3kQ^E\V9aUYp0NjUDFL1`8K^{q "]A Aa>&.cHeWW1B1Q`gT$a8XFm. 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. Bottom Line: Rising rates reduce lump sums. 130 E. Randolph St. 0000007454 00000 n If you choose to do nothing, your current monthly pension payments will continue. Early this year Alcatel-Lucent announced they were investigating offering a voluntary lump sum buy-out of retiree pensions. 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). 3QxbOJZL3 i`/ 4(yKH.WT=\}LN8V^*~& 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 In fact Alcatel-Lucent was a foreign company and they could not take our pension funds. !J,3pNM,A|f5\mCl]) Pv&hhy 6u!2|)z9F_!lE^wxDaOo8^ %SE91q45),lEQN8:O $o2dhcflYK fgOlK: 2SYu*q"H3;Ydi37t6K^4nb8o?/zYK 2023 Communications Workers of America, AFL-CIO, CLC All Rights Reserved | Site Map | Privacy Policy. Sign up and get the best of News delivered straight to your email inbox, free of charge. Because this offer was already approved and in the works it is NOT impacted by the ruling. Plan assets are protected from being used for purposes other than providing benefits (or reasonable administrative expenses). old, single, working fulltime, and in great health (knock on wood). 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. In Column D, at your life. 0000015986 00000 n Plan assets are protected from being used for purposes other than providing benefits (or reasonable administrative expenses). 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. 0000022178 00000 n Copyright 2023by NAPA, Compliance Administrator (TPA) Evaluation. [|c-Ur7fg Jlh>{.OQQ ,FuZr"\>`k_,&^[\z^ :;@. @V6l "{1 Even if they are, that does not mean you should take it. 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. Q5) Will the new IRS ruling on pensions affect our Lucent retirees taking this lump sum? As we get more information, we will publish it on this site. Their answer is that there are no plans for a cost-of-living raise. 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. 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 plans to make a voluntary lump-sum offer in 2015 to 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 . To read about CWA Members, Leadership or Industries, visit ourAbout page. The CWA actuaries will review them to be sure that how they are being calculated is correct. 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. You will receive your first bill in mid-November for your December coverage. In addition, Nokia will most probably create a Nokia (USA) subsidiary which would be completely subject to US laws. Q2) Do I have to take this lump sum buyout offer? Everyones situation is different and unique to them. 0 What questions should I be asking? 0000012893 00000 n Workers' Rights Button submenu. 0 endstream endobj startxref endstream endobj 273 0 obj <>stream Tenth Floor xb```b``d`e`y |,@Q9F90*oZWcS;ik5H0frrx@,V"a"C8jqP 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. I am 64 yrs. hb```2ff5Ad`C PI&,~Lj b69=d291 0{D4)LTYs7-nJU:en\k'Wl2/WTN.\xaAAHy40QXah`h hhh s@`H1HQAi7*+':]0AC [8]XiV# M,y Your guidance is very much appreciated. About Change submenu. 0000000016 00000 n Synopsis of Material Modifications Alcatel-Lucent Retirement . And it's true that one dollar in 1990 purchasing power requires $2.73 today. 0000014929 00000 n For Alcatel-Lucent's U.S. pension plans, the funding policy is to contribute amounts to the . a835gQ00]=8gVYROU4CCXghhr'Hcbo2.0k7.8-1pC*A#=W[K!F$R# A lump sum pension distribution offers the flexibility of being able to spend or invest your retirement savings any way you see fit. hkkG@$fg.e5$-ZRY+u}3+)Jb5j?Bs33g0.lDEPO"$LRBQB{L2BgB@GyNyU/^mDJ$.nyw'(FyY_1JNb+vFcq+3r,k5>k9]TF5Fr ov+%]lnJyZCm;[yw9{Zy zv# Some former employees might also have the opportunity to change their current annuity option to a different annuity form. \?Q8za"mb CMz>GWcgeXSoGcg z!#}'`yOx"(:otxJ+;`Oc56d jnSf;Tm;H8b`i@5@(^hq;X8@d]EXr|w^>|K3Y6g9skZy&jteg}aBM\ju.Ks8XpOTi#Dl8gCx. Learn more here. 17 0 obj <> endobj BIs Article search uses Boolean search capabilities. A1) Alcatel-Lucent is making available financial and tax education services through Deloitte, an objective, third party organization, at no cost to you. If the plan is not fully-funded, the employer may apply for a distress termination if the employer is in financial distress. Privacy PolicyTerms of UseCopyright. 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 She writes a weekly personal finance column syndicated in major newspapers by Tribune Content Agency. 0000007666 00000 n To read about CWA Members, Leadership or Industries, visit ourAbout page. J m^?bSL&MM>^S!OYuFG]2_w*'~vmi"chV6{8E&`(72jje&}\MlKM+TLigQC42BIj4^C};)k"C+"?j^SDE5[k]83/pivCNSa+| $ 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. xoH-Ge/+Uj%_lQ8B\R,Nk;Od.''M[fy%'mNd/i(-*i_EvS4H.fx3Vpe I need to continue to withdraw money from my pension to live. 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. Early this year Alcatel-Lucent announced they were investigating offering a voluntary lump sum buy-out of retiree pensions. Biggest Lucent Pension Drop in a Generation. So assuming that you are not going to be sued, this is strictly a financial planning question. This is an extremely important decision and it requires careful consideration. 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. To read about CWA Members, Leadership or Industries, visit ourAbout page. Again, this is an extremely important decision and it requires careful consideration. Figuring this out is very simple. Q1) Where can I get more information about this offer? Jobs, Health Care & Retirement Security . XWyTfnzp@EA0DEqD" Eligible former employees are NOT required to make any changes to how or when they receive their Plan benefits. 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. The lump sum amount, if not invested, will hold me for 13 yrs. 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. Early this year Alcatel-Lucent announced they were investigating offering a voluntary lump sum buy-out of retiree pensions. 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. 0000014974 00000 n 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"). Illinois DOES NOT currently tax IRA withdrawals. One of them is offering lump sum buy-outs. 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. They could do that by purchasing annuities through an insurance company. The lump-sum window runs from July 20 through September 25 and is completely voluntary. 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.) Columbia Threadneedle Investments (Columbia Threadneedle) is the global brand name of the Columbia and Threadneedle group of companies. "9:@$;dIs0&w@qY }*#l8l 0 Can the company terminate the pension plan? This means that there are specific guidelines that must be followed under federal law. I need to continue to withdraw money from my pension to live. The premium amount will still be based on what your current monthly pension amount is today. The Program Window is only in effect beginning July 20, 2015 and ends at 11:59 p.m. (EDT) on September 25, 2015. These resources include group sessions, individual sessions and a Financial and Tax Education Tool. 0 Employers that reduce the risk of their pension plans could face a new requirement: disclosing basic information about the transactions to the Pension Benefit Guaranty Corp. as part of paying their annual premium to the federal agency. For media inquiries, call CWA Communications at 202-434-1168 or emailnews@cwa-union.org. 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). CWA is not in the position to interpret the companys offer and does not give out financial advice. 0000001958 00000 n 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 . Therefore, the company cannot just take money from the pension plan and use it for other things. for subscribing, you are all set for your money saving tips. You can make some investments that are likely to generate growth and income to support your retirement needs. 685 Third Avenue In terms of the Nokia merger -- There is a fear since Nokia is a foreign company our pensions would no longer be protected. 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. Our legal department and our research department both came to the same conclusion: U.S. law that currently protects the pension benefits of our members will still apply if Nokia purchases Alcatel Lucent. You may also contact the Nokia Benefits Resource Center. 0000002597 00000 n 40 0 obj <>stream hmk0"tzc7hh:(}&5se(|EV i"0W-kb@@.P|,rQfd\e.9thw)SV"\N2,]Ew9gmP?e? 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. 0000011786 00000 n 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. Q6) What company is the new annuity going to be with? In fact these two announcements are not connected. Used with permission. TAJ6LuR.u(NdLN_Ht)txF%K.)/|q1oO|uB+t{?ZQWH^ hsPZ=+,wz/ If you choose to do nothing, your current monthly pension payments will continue. %%EOF I have many questions. In fact Alcatel-Lucent was a foreign company and they could not take our pension funds. 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. To search for a combination of terms, use quotations and the & symbol. Two announcements have been made this year by Alcatel-Lucent and many of you might think they are connected. 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. For example, workers compensation. After all, getting a huge influx of cash into your account upon retirement would make anyone jump for joy. Leadership. As we get more information, we will publish it on this site. i received an offer for a lump sum payout based on the incorrect monthly pension. 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 Occupational Pension Plan. 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. 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. "It is an excuse to put money into their underfunded plan . 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. they have known this for over 30 days and i am not making any headway with getting it corrected. hbbd```b``z "kd(d? If you dont have a choice, but must take the lump sum offered, then I suggest rolling it to an IRA as described above. %PDF-1.7 % While a pension annuity offers a fixed monthly income, a. Alcatel-Lucent Old Scheme, London, completed a 100 million ($123.7 million) buy-in with Boarding Insurance Core. One more point, just because our pension are protected now, we should not assume it will always be this way. 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. 284 0 obj <>/Filter/FlateDecode/ID[<401FD2CD3C4E2E4F956EAD5ECE542FCA><5B6DADCB6C7B5D49B41567324319F557>]/Index[268 30]/Info 267 0 R/Length 90/Prev 182067/Root 269 0 R/Size 298/Type/XRef/W[1 3 1]>>stream Advisor action items: Talk the your Alcatel-Lucent clients who may be affected. 569 0 obj <>stream 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. To: Formerly Represented Retirees of Alcatel-Lucent, Subject: Questions Regarding the Alcatel-Lucent Pension Lump Sum Buyout. Last week retirees received the first official notice of the lump sum offering. One more point, just because our pension are protected now, we should not assume it will always be this way. Menu burger Close thin Facebook Twitter Google plus Linked in Reddit Email arrow-right-sm arrow-right Loading Home Buying Calculators Health & Safety Fact Sheets ; Legislation & Politics ; News & Events A3) The language on page 10 is standard language. The National Association of Plan Advisors is a non-profit professional society. In fact these two announcements are not connected. 297 0 obj <>stream 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. More on Alcatel-Lucent retiree and pension issues and the acquisition by Nokia. HWmkF}J\l|MiJ(R~H'g@,F/3H4(-A &.}qp@|te\j|Y#|:Op:[JAa9@gTj-@J 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. Our legal department and our research department both came to the same conclusion: U.S. law that currently protects the pension benefits of our members will still apply if Nokia purchases Alcatel Lucent. 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. A6) The new annuity is a recalculation, for certain individuals, of the old calculations and is still administered by the pension plan. (What you might be thinking is that an IRA is less secure from creditors than a pension payout, and that would be correct.) 268 0 obj <> endobj Alcatel-Lucent announced it was being purchased by Nokia. Alcatel-Lucent to expand lump-sum offer to 32,000 more participants Alcatel-Lucent completes buy-in for U.K. pension fund, eyes full buyout Alcatel-Lucent enters into second buy-in for U.K . The materials contained herein are intended for instruction only and are not a substitute for professional advice.
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