You point out that the pension trust is overfunded, and inflation has taken its toll, particularly on long-time retirees. I am 64 yrs. 0000002392 00000 n More on Alcatel-Lucent retiree and pension issues and the acquisition by Nokia. 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 All of this is costly to the company. If you are eligible for a lump sum, you may be able to get a significantly . at the current rate of yearly allocations given by the employer. Just go to www.immediateannuities.com, and insert your age, gender, state, and the lump sum amount you have to invest. 0000011786 00000 n 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. Companies that are offering lump-sum pension buyouts - Pension Rights 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. As we get more information, we will publish it on this site. PDF Lucent Technologies Inc. Pension Plan - BenefitAnswers Plus web design and development by new target, inc. Jobs, Health Care & Retirement Security . 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. trailer 40 0 obj <>stream That new car or luxurious vacation may not . 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 . 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. 297 0 obj <>stream About Change submenu. Plan assets are protected from being used for purposes other than providing benefits (or reasonable administrative expenses). So assuming that you are not going to be sued, this is strictly a financial planning question. In fact these two announcements are not connected. Choose your news we will deliver. To search for a combination of terms, use quotations and the & symbol. I have many questions. If I roll it over, say into an IRA, then the income becomes taxable. "It is an excuse to put money into their underfunded plan . That is not necessarily true. BIs Article search uses Boolean search capabilities. 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# 3QxbOJZL3 i`/ 4(yKH.WT=\}LN8V^*~& You may also contact the Nokia Benefits Resource Center. This means that there are specific guidelines that must be followed under federal law. That is not necessarily true. <]>> Last week retirees received the first official notice of the lump sum offering. Call 1-888-232-4111 and select "Retirement and Investments", then select "Pension". You may also contact the Alcatel-Lucent Retiree Lump Sum Window Benefits Center at (866) 617-7164. 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. 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. The Program Window is only in effect beginning July 20, 2015 and ends at 11:59 p.m. (EDT) on September 25, 2015. PDF Summary of Material Modifications Alcatel-Lucent Retirement Income Plan [|c-Ur7fg Jlh>{.OQQ ,FuZr"\>`k_,&^[\z^ :;@. @V6l "{1 Copyright 2023by NAPA, Compliance Administrator (TPA) Evaluation. What asset class is best for corporate plans' growth investments when using LDI? 0000000016 00000 n Terry Savage is a nationally recognized expert on personal finance, the economy and the markets. 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 It doesnt prevent a company from declaring bankruptcy. 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. PDF Alcatel Data Networks Inc. Retirement Pension Plan - BenefitAnswers Plus 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. 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 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. Synopsis of Material Modifications Alcatel-Lucent Retirement . Alcatel-Lucent Retiree Lump Sum Window Benefits Center at (866) 617-7164. The CWA actuaries will review them to be sure that how they are being calculated is correct. But keep in mind that a lump sum pension payout makes it easier to overspend in retirement. 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). 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 attached information (cover letterprogram announcementFTE Guide) will be mailed by Alcatel-Lucent to eligible Plan participants beginning tomorrow, Friday, June 26, 2015. endstream endobj startxref 17 24 The Pension Protection Act helps to ensure the plan is appropriately funded. Even if they are, that does not mean you should take it. hmk0"tzc7hh:(}&5se(|EV i"0W-kb@@.P|,rQfd\e.9thw)SV"\N2,]Ew9gmP?e? 0000008372 00000 n These resources include group sessions, individual sessions and a Financial and Tax Education Tool. i received an offer for a lump sum payout based on the incorrect monthly pension. For media inquiries, call CWA Communications at 202-434-1168 or emailnews@cwa-union.org. Sell Your Pension & Retirement Plan for a Cash Lump Sum! Suite 3200 I'd point out however that not all wobble stools are bad. Their answer is that there are no plans for a cost-of-living raise. Alcatel-Lucent Pension Lump Sum Buyout | Communications Workers of Alcatel-Lucent also recommends recipients of the offer consult with their personal financial planner and/or taxes advisor before making a decision. History. Today, the pension plan is covered by ERISA and is protected by the Pension Benefit Guaranty Corporation (PBGC). You will see offerings frm major insurance companies giving you a monthly payout. Alcatel-Lucent Pension Lump Sum Buyout | Communications Workers of 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. Careers at CWA. Menu burger Close thin Facebook Twitter Google plus Linked in Reddit Email arrow-right-sm arrow-right Loading Home Buying Calculators Q3) Page 10 of the Alcatel-Lucent Retiree Lump Sum Window booklet says the company has rights to terminate either plan, etc. A5) The new ruling by the IRS addresses discontinuing offering a lump sum buy out in certain circumstances going forward. Q6) What company is the new annuity going to be with? 0000001040 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. Therefore, the company cannot just take money from the pension plan and use it for other things. Sign up to receive Terrys free newsletter!! In fact, at this years CWA T&T Leadership conference, our Research Department conducted a workshop on trends in Pension de-risking and bargaining. It is a sizable amount of money. HWmkF}J\l|MiJ(R~H'g subsidiary which would be completely subject to US laws. More on Alcatel-Lucent Retiree and Pension Issues and the acquisition 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. sure enough, the lack of stability does bring a certain focus - which, to your point, can be Great article. Sign up and get the best of News delivered straight to your email inbox, free of charge. One option is to take the lump sum and park it in a money-market fund currently paying more than 4% until better investment opportunities come along. Your guidance is very much appreciated. 268 0 obj <> endobj 0000014070 00000 n Alcatel-Lucent announced it was being purchased by Nokia. sw 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 . NRLN Lucent/Nokia Retirees Chapter THIS PROGRAM IS STRICTLY VOLUNTARY! You DO NOT have to accept this offer. XWyTfnzp@EA0DEqD" 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. For Alcatel-Lucent's U.S. pension plans, the funding policy is to contribute amounts to the . The lump-sum window runs from July 20 through September 25 and is completely voluntary. In fact these two announcements are not connected. Legislation and Politics. 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. xb```b``d`e`y |,@Q9F90*oZWcS;ik5H0frrx@,V"a"C8jqP Following are the questions, with the answers, that we have received to date. Everyones situation is different and unique to them. 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.) Tenth Floor A2) This offer is strictly voluntary. 0000007454 00000 n This is an extremely important decision and it requires careful consideration. 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. Health & Safety Fact Sheets ; Legislation & Politics ; News & Events To read about CWA Members, Leadership or Industries, visit ourAbout page. To: Formerly Represented Retirees of Alcatel-Lucent, Subject: Questions Regarding the Alcatel-Lucent Pension Lump Sum Buyout. Q7) What happens to my healthcare if I take this lump sum buy out? Lucent? How to Navigate Pension Changes - The Retirement Group You DO NOT have to accept this offer. endstream endobj 548 0 obj <>stream I need to continue to withdraw money from my pension to live. %PDF-1.7 % If you are not familiar with these principles, here are some quick tips. Q2) Do I have to take this lump sum buyout offer? Nokia to merge its 401(k) plan into Alcatel-Lucent's offering Pros and Cons of Lump Sum Pension Payouts. 0000007666 00000 n Q2) Do I have to take this lump sum buyout offer? Alcatel-Lucent Pension Lump Sum Buyout - Communications Workers of America 2015 Columbia Management Investment Advisers, LLC. More on Alcatel-Lucent retiree and pension issues and the acquisition by Nokia. %%EOF 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. Eligible former employees are NOT required to make any changes to how or when they receive their Plan benefits. 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. If the plan is not fully-funded, the employer may apply for a distress termination if the employer is in financial distress. 0000009608 00000 n Holy cow, Nevin, you wrote a white paper! Alcatel-Lucent to expand lump-sum offer to 32,000 more participants \?Q8za"mb CMz>GWcgeXSoGcg z!#}'`yOx"(:otxJ+;`Oc56d jnSf;Tm;H8b`i@5@(^hq;X8@d]EXr|w^>|K3Y6g9skZy&jteg}aBM\ju.Ks8XpOTi#Dl8gCx. 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 Rob Kozlowski writes for Pensions & Investments, a sister publication of Business Insurance. In fact Alcatel-Lucent was a foreign company and they could not take our pension funds. Because this offer was already approved and in the works it is NOT impacted by the ruling. 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. One of them is offering lump sum buy-outs. 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. Dossier of the Week: Alcatel-Lucent's Lump-Sum Offer 2023 Communications Workers of America, AFL-CIO, CLC All Rights Reserved | Site Map | Privacy Policy. She writes a weekly personal finance column syndicated in major newspapers by Tribune Content Agency. What about the Pension Protection Act? "9:@$;dIs0&w@qY }*#l8l 0 It is a sizable amount of money. 569 0 obj <>stream Questions Regarding the Alcatel-Lucent Pension Lump Sum Buyout. A6) The new annuity is a recalculation, for certain individuals, of the old calculations and is still administered by the pension plan. After all, getting a huge influx of cash into your account upon retirement would make anyone jump for joy. old, single, working fulltime, and in great health (knock on wood). To consistently deliver news, research and analysis to the executives who manage the flow of funds in the institutional investment market. a835gQ00]=8gVYROU4CCXghhr'Hcbo2.0k7.8-1pC*A#=W[K!F$R# 0000015024 00000 n Lump-Sum vs. Regular Pension Payments: What's the Difference? 544 0 obj <> endobj Pension Plans offer lump sums periodically, but typically change once a year. 0000008051 00000 n If you roll to Fidelity, Vanguard, or T. Rowe Price they will handle both the investment and withdrawal planning for you. 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). If you choose to do nothing, your current monthly pension payments will continue. %PDF-1.4 % The lump sum amount, if not invested, will hold me for 13 yrs. Skip up main content . 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). 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 In addition, Nokia will most probably create a Nokia (USA) subsidiary which would be completely subject to US laws. PDF Annual Funding Notice Alcatel-Lucent Retirement Income Plan Two announcements have been made this year by Alcatel-Lucent and many of you might think they are connected. IF the company decided to terminate the plan they would have to do it under government guidelines. The National Association of Plan Advisors is a non-profit professional society. The materials contained herein are intended for instruction only and are not a substitute for professional advice. endstream endobj 272 0 obj <>stream 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. I have many questions. Vm}O%TimaUMG60)f 6(jvR NEZ;[R!m))62Kr)7;yPedf`zms 0000001958 00000 n One more point, just because our pension are protected now, we should not assume it will always be this way. 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. 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. Traditionally, when interest rates rise by 1% the amount in an Lucent employee's lump-sum will drop by 8 - 12%. View all Financial Planning / Retirement questions. Retirement Savings & Pension - BenefitAnswers Plus )@,F/3H4(-A &.}qp@|te\j|Y#|:Op:[JAa9@gTj-@J What You Can Do on the YBR Website If you are now receiving benefits: View your payment confirmations and history; they have known this for over 30 days and i am not making any headway with getting it corrected. ~n]A9iRD wkvU@HB8E8JKkt>:O) In fact these two announcements are not connected. To search specifically for more than one word, put the search term in quotation marks. 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 TAJ6LuR.u(NdLN_Ht)txF%K.)/|q1oO|uB+t{?ZQWH^ hsPZ=+,wz/ 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.) For media inquiries, call CWA Communications at 202-434-1168 or emailnews@cwa-union.org. 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. Alcatel-Lucent also recommends recipients of the offer consult with their personal financial planner and/or tax advisor before making a decision. In terms of the Nokia merger -- There is a fear since Nokia is a foreign company our pensions would no longer be protected. 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. The best way to safeguard our future is to stay active in your Retiree Councils and vote for people who will fight to protect our rights and our benefits. Should You Take Pension Payments or a Lump Sum? A How-To Guide 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 Columbia Threadneedle Investments (Columbia Threadneedle) is the global brand name of the Columbia and Threadneedle group of companies. 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. 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. 0000002597 00000 n Examples of those protections are: The Company may not retroactively reduce those benefits, once they are vested. This offer, called the Alcatel-Lucent Retiree Lump-Sum Window Program, formally began on July 20, 2015 and ended on September 25, 2015. 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. The Columbus Dispatch Tuesday February 16, 2016 5:00 AM. A schedule of those sessions is in the Financial and Tax Education Guide booklet provided in the program announcement package. Currently the LTPP is funded at approximately 149%. hbbd```b``z "kd(d? 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. For media inquiries, call CWA Communications at 202-434-1168 or emailnews@cwa-union.org. Some eligible former employees also had the opportunity to change their existing annuity option to a different annuity option. Alcatel-Lucent announced it was being purchased by Nokia. 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.
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