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old, single, working fulltime, and in great health (knock on wood). 0000022178 00000 n \?Q8za"mb CMz>GWcgeXSoGcg z!#}'`yOx"(:otxJ+;`Oc56d jnSf;Tm;H8b`i@5@(^hq;X8@d]EXr|w^>|K3Y6g9skZy&jteg}aBM\ju.Ks8XpOTi#Dl8gCx. Alcatel-Lucent Pension Lump Sum Buyout | Communications Workers of 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. Vm}O%TimaUMG60)f 6(jvR NEZ;[R!m))62Kr)7;yPedf`zms You point out that the pension trust is overfunded, and inflation has taken its toll, particularly on long-time retirees. 17 0 obj <> endobj Plan assets are protected from being used for purposes other than providing benefits (or reasonable administrative expenses). 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. 0000014070 00000 n 0000014974 00000 n Advisor action items: Talk the your Alcatel-Lucent clients who may be affected. One of them is offering lump sum buy-outs. All of this is costly to the company. Biggest Lucent Pension Drop in a Generation. In addition, Nokia will most probably create a Nokia (USA) subsidiary which would be completely subject to US laws. If the plan is not fully-funded, the employer may apply for a distress termination if the employer is in financial distress. To read about CWA Members, Leadership or Industries, visit ourAbout page. 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. Alcatel-Lucent plans voluntary lump-sum offer in 2015 Should You Take Pension Payments or a Lump Sum? A How-To Guide If I do decide to take it, what are my investment options to continue to withdraw on a monthly or yearly basis? 569 0 obj <>stream Alcatel-Lucent to expand lump-sum offer to 32,000 more participants Skip up main content . IF the company decided to terminate the plan they would have to do it under government guidelines. 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.) In fact, at this years CWA T&T Leadership conference, our Research Department conducted a workshop on trends in Pension de-risking and bargaining. Jobs, Health Care & Retirement Security . Q7) What happens to my healthcare if I take this lump sum buy out? Legislation and Politics. To consistently deliver news, research and analysis to the executives who manage the flow of funds in the institutional investment market. PDF Annual Funding Notice Alcatel-Lucent Retirement Income Plan 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 . When to Accept a Buyout | Kiplinger Last week retirees received the first official notice of the lump sum offering. To: Formerly Represented Retirees of Alcatel-Lucent, Subject: Questions Regarding the Alcatel-Lucent Pension Lump Sum Buyout. 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. If you dont have a choice, but must take the lump sum offered, then I suggest rolling it to an IRA as described above. Alcatel-Lucent announced it was being purchased by Nokia. 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. Health & Safety Fact Sheets ; Legislation & Politics ; News & Events The attached information (cover letterprogram announcementFTE Guide) will be mailed by Alcatel-Lucent to eligible Plan participants beginning tomorrow, Friday, June 26, 2015. After all, getting a huge influx of cash into your account upon retirement would make anyone jump for joy. 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. A2) This offer is strictly voluntary. Get Email Updates; Receive Text Alerts; Detect Your Local; Search; Services Laborer of Worldwide . 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. 0000001121 00000 n This means that there are specific guidelines that must be followed under federal law. What about the Pension Protection Act? If you are eligible for a lump sum, you may be able to get a significantly . %%EOF a835gQ00]=8gVYROU4CCXghhr'Hcbo2.0k7.8-1pC*A#=W[K!F$R# And it's true that one dollar in 1990 purchasing power requires $2.73 today. Menu burger Close thin Facebook Twitter Google plus Linked in Reddit Email arrow-right-sm arrow-right Loading Home Buying Calculators 0000001515 00000 n 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. You will see offerings frm major insurance companies giving you a monthly payout. r?Yw-g{A8se? Jx^m!xDC8p:PI((`![G EkrQXADX 0000000016 00000 n 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. 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 web design and development by new target, inc. Former employee, ATT/Lucent/Alcatel-Lucent is offering a lump sum buyout of our pensions. 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. The Program Window is only in effect beginning July 20, 2015 and ends at 11:59 p.m. (EDT) on September 25, 2015. tS The lump-sum window runs from July 20 through September 25 and is completely voluntary. NRLN Lucent/Nokia Retirees Chapter 0000010715 00000 n Any money left over in the fund the company would have to pay a penalty tax on. I'd point out however that not all wobble stools are bad. They could do that by purchasing annuities through an insurance company. 0000000776 00000 n Pros and Cons of Lump Sum Pension Payouts. 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. In fact these two announcements are not connected. To read about CWA Members, Leadership or Industries, visit ourAbout page. What questions should I be asking? In terms of the Nokia merger -- There is a fear since Nokia is a foreign company our pensions would no longer be protected. 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. 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 Or you could wait a few years to buy an. Case of the Week: Alcatel-Lucent's Lump-Sum Offer Traditionally, when interest rates rise by 1% the amount in an Lucent employee's lump-sum will drop by 8 - 12%. Just go to www.immediateannuities.com, and insert your age, gender, state, and the lump sum amount you have to invest. 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 endstream endobj 272 0 obj <>stream %%EOF Again, this is an extremely important decision and it requires careful consideration. 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. The Columbus Dispatch Tuesday February 16, 2016 5:00 AM. xref J m^?bSL&MM>^S!OYuFG]2_w*'~vmi"chV6{8E&`(72jje&}\MlKM+TLigQC42BIj4^C};)k"C+"?j^SDE5[k]83/pivCNSa+| $ I Receive a Pension From Alcatel-lucent. Received a Package 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. 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. 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. 0000011786 00000 n The Program is not being offered to everyone. While a pension annuity offers a fixed monthly income, a. 0 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. 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. Last week retirees received the first official notice of the lump sum offering. 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. She writes a weekly personal finance column syndicated in major newspapers by Tribune Content Agency. How to Avoid Taxes on Lump Sum Pension Payout - SmartAsset i receive a pension from alcatel-lucent. 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. Q2) Do I have to take this lump sum buyout offer? What You Can Do on the YBR Website If you are now receiving benefits: View your payment confirmations and history; Alcatel-Lucent announced it was being purchased by Nokia. Q3) Page 10 of the Alcatel-Lucent Retiree Lump Sum Window booklet says the company has rights to terminate either plan, etc. These resources include group sessions, individual sessions and a Financial and Tax Education Tool. Alcatel-Lucent enters into second buy-in for U.K. pension plan As we get more information, we will publish it on this site. 0000017395 00000 n 8bOM4JDEEE3`%y1OSwR;jysrU ;(SRg3,}tc qR{SeL1E9im|6';Ye]DHH. In fact, at this years CWA T&T Leadership conference, our Research Department conducted a workshop on trends in Pension de-risking and bargaining. You will receive your first bill in mid-November for your December coverage. endstream endobj startxref In fact these two announcements are not connected. It doesnt prevent a company from declaring bankruptcy. 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 Pension Plans offer lump sums periodically, but typically change once a year. Suite 3200 297 0 obj <>stream 3QxbOJZL3 i`/ 4(yKH.WT=\}LN8V^*~& 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. That new car or luxurious vacation may not . trailer A5) The new ruling by the IRS addresses discontinuing offering a lump sum buy out in certain circumstances going forward. <]>> Some eligible former employees also had the opportunity to change their existing annuity option to a different annuity option. 0000015986 00000 n 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. %PDF-1.7 % L Ne`8H3*00\?0 Z* Social Security Solvency: Is it Really That Bad? 0000002947 00000 n Retirement Savings & Pension - BenefitAnswers Plus That will get you a guaranteed stream of (fully taxable) income for as long as you live. To read about CWA Members, Leadership or Industries, visit ourAbout page. 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). 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.) Privacy PolicyTerms of UseCopyright. 685 Third Avenue For Alcatel-Lucent's U.S. pension plans, the funding policy is to contribute amounts to the . 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. 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. Inflation And Pension Lump Sums: Timing Is Everything - Forbes One more point, just because our pension are protected now, we should not assume it will always be this way. 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. You DO NOT have to accept this offer. 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. A1) Alcatel-Lucent is making available financial and tax education services through Deloitte, an objective, third party organization, at no cost to you. 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. In Column D, at your life. Recipients have the option to do nothing and will continue to receive their current monthly annuity payments. Main Office sure enough, the lack of stability does bring a certain focus - which, to your point, can be Great article. As of Dec. 31, 2013, the U.S. pension funds had $30.1 billion in assets and $26.2 billion in projected benefit obligations, for a funding ratio of 115%, according to the companys most recent 20-F filing. xuSn0>DBH I$}C.SwB#s_u_0Bt lV:~D[S84eF}dKq_ ={K~922&1BOz:`. Following are the questions, with the answers, that we have received to date. You may also contact the Nokia Benefits Resource Center. Alcatel-Lucent Pension Lump Sum Buyout | Communications Workers of Alcatel-Lucent Retiree Pensions - CWA 4900 A schedule of those sessions is in the Financial and Tax Education Guide booklet provided in the program announcement package. 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. Careers at CWA. Former employee, ATT/Lucent/Alcatel-Lucent is offering a lump sum buyout of our pensions. Early this year Alcatel-Lucent announced they were investigating offering a voluntary lump sum buy-out of retiree pensions. )@,F/3H4(-A &.}qp@|te\j|Y#|:Op:[JAa9@gTj-@J Their answer is that there are no plans for a cost-of-living raise. 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. Therefore, the company cannot just take money from the pension plan and use it for other things. 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. Illinois DOES NOT currently tax IRA withdrawals. Q1) Where can I get more information about this offer? In fact Alcatel-Lucent was a foreign company and they could not take our pension funds.