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 . You will receive your first bill in mid-November for your December coverage. View all Financial Planning / Retirement questions. Sign up to receive Terrys free newsletter!! Alcatel-Lucent announced it was being purchased by Nokia. To read about CWA Members, Leadership or Industries, visit ourAbout page. for subscribing, you are all set for your money saving tips. !J,3pNM,A|f5\mCl]) Pv&hhy 6u!2|)z9F_!lE^wxDaOo8^ %SE91q45),lEQN8:O $o2dhcflYK fgOlK: 2SYu*q"H3;Ydi37t6K^4nb8o?/zYK In terms of the Nokia merger -- There is a fear since Nokia is a foreign company our pensions would no longer be protected. 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. You may also contact the Nokia Benefits Resource Center. To do so, however, the employer must prove to a bankruptcy court or to the PBGC . Currently the LTPP is funded at approximately 149%. hbbd```b``z "kd(d? *4w| sX8#.i_96"he@;(e[*'m'-Ksbzgh k@0n`76Cdi} fK0/h. {j 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 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. Eligible former employees are NOT required to make any changes to how or when they receive their Plan benefits. Following are the questions, with the answers, that we have received to date. Examples of those protections are: The Company may not retroactively reduce those benefits, once they are vested. As we get more information, we will publish it on this site. Just go to www.immediateannuities.com, and insert your age, gender, state, and the lump sum amount you have to invest. One more point, just because our pension are protected now, we should not assume it will always be this way. old, single, working fulltime, and in great health (knock on wood). IF the company decided to terminate the plan they would have to do it under government guidelines. I have many questions. In fact these two announcements are not connected. Bottom Line: Rising rates reduce lump sums. Even if they are, that does not mean you should take it. 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 Some eligible former employees also had the opportunity to change their existing annuity option to a different annuity option. 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. You will see offerings frm major insurance companies giving you a monthly payout. So assuming that you are not going to be sued, this is strictly a financial planning question. All of this is costly to the company. %%EOF In fact these two announcements are not connected. 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 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. %PDF-1.5 % If I do decide to take it, what are my investment options to continue to withdraw on a monthly or yearly basis? If I roll it over, say into an IRA, then the income becomes taxable. 0000010715 00000 n Legislation and Politics. These resources include group sessions, individual sessions and a Financial and Tax Education Tool. 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). Their answer is that there are no plans for a cost-of-living raise. 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. Alcatel-Lucent announced it was being purchased by Nokia. For example, workers compensation. The advisor asked: What are the details around Alcatel-Lucents lump sum offer to former employees?. History. Health & Safety Fact Sheets ; Legislation & Politics ; News & Events 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. A3) The language on page 10 is standard language. 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 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. Pension Plans offer lump sums periodically, but typically change once a year. Tenth Floor Recipients have the option to do nothing and will continue to receive their current monthly annuity payments. Q3) Page 10 of the Alcatel-Lucent Retiree Lump Sum Window booklet says the company has rights to terminate either plan, etc. Today, the pension plan is covered by ERISA and is protected by the Pension Benefit Guaranty Corporation (PBGC). Alcatel-Lucent Old Scheme, London, completed a 100 million ($123.7 million) buy-in with Boarding Insurance Core. tS Early this year Alcatel-Lucent announced they were investigating offering a voluntary lump sum buy-out of retiree pensions. Copyright 2023by NAPA, Compliance Administrator (TPA) Evaluation. For media inquiries, call CWA Communications at 202-434-1168 or emailnews@cwa-union.org. 2015 Columbia Management Investment Advisers, LLC. 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). 0000000016 00000 n You may also contact the Alcatel-Lucent Retiree Lump Sum Window Benefits Center at (866) 617-7164. 544 0 obj <> endobj In addition, Nokia will most probably create a Nokia (USA) subsidiary which would be completely subject to US laws. trailer The CWA actuaries will review them to be sure that how they are being calculated is correct. Biggest Lucent Pension Drop in a Generation. To read about CWA Members, Leadership or Industries, visit ourAbout page. After all, getting a huge influx of cash into your account upon retirement would make anyone jump for joy. More on Alcatel-Lucent retiree and pension issues and the acquisition by Nokia. You have until September to decide and you should use the time to consult with someone who can review your individual situation. 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. 268 0 obj <> endobj That new car or luxurious vacation may not . And it's true that one dollar in 1990 purchasing power requires $2.73 today. The CWA actuaries will review them to be sure that how they are being calculated is correct. Again, this is an extremely important decision and it requires careful consideration. 0000001121 00000 n In fact Alcatel-Lucent was a foreign company and they could not take our pension funds. "It is an excuse to put money into their underfunded plan . 0000017395 00000 n 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. ~n]A9iRD wkvU@HB8E8JKkt>:O) Columbia Threadneedle Investments (Columbia Threadneedle) is the global brand name of the Columbia and Threadneedle group of companies. Everyones situation is different and unique to them. 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.) 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. 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. 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. 8bOM4JDEEE3`%y1OSwR;jysrU ;(SRg3,}tc qR{SeL1E9im|6';Ye]DHH. web design and development by new target, inc. If you dont have a choice, but must take the lump sum offered, then I suggest rolling it to an IRA as described above. Can the company terminate the pension plan? 0000002597 00000 n 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. You can make some investments that are likely to generate growth and income to support your retirement needs. We have raised the question with Nokia. Q2) Do I have to take this lump sum buyout offer? \?Q8za"mb CMz>GWcgeXSoGcg z!#}'`yOx"(:otxJ+;`Oc56d jnSf;Tm;H8b`i@5@(^hq;X8@d]EXr|w^>|K3Y6g9skZy&jteg}aBM\ju.Ks8XpOTi#Dl8gCx. 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. I am 64 yrs. 685 Third Avenue 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). Figuring this out is very simple. 0000012893 00000 n This offer, called the Alcatel-Lucent Retiree Lump-Sum Window Program, formally began on July 20, 2015 and ended on September 25, 2015. This will limit your search to that combination of words. 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. As we get more information, we will publish it on this site. Q2) Do I have to take this lump sum buyout offer? Therefore, the company cannot just take money from the pension plan and use it for other things. Currently IL does not charge on pension income? 0000008051 00000 n 17 24 Q7) What happens to my healthcare if I take this lump sum buy out? 17 0 obj <> endobj More on Alcatel-Lucent retiree and pension issues and the acquisition by Nokia. 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. 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. 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). A2) This offer is strictly voluntary. Call 1-888-232-4111 and select "Retirement and Investments", then select "Pension". Alcatel-Lucent announced it was being purchased by Nokia. 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. 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. Early this year Alcatel-Lucent announced they were investigating offering a voluntary lump sum buy-out of retiree pensions. 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"). In fact these two announcements are not connected. 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 For Alcatel-Lucent's U.S. pension plans, the funding policy is to contribute amounts to the . 569 0 obj <>stream endstream endobj 548 0 obj <>stream Early this year Alcatel-Lucent announced they were investigating offering a voluntary lump sum buy-out of retiree pensions. That is not necessarily true. 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. Alcatel-Lucent also recommends recipients of the offer consult with their personal financial planner and/or taxes advisor before making a decision. In fact Alcatel-Lucent was a foreign company and they could not take our pension funds. They could do that by purchasing annuities through an insurance company. 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. But keep in mind that a lump sum pension payout makes it easier to overspend in retirement. New York, NY 10017-4036, Chicago Office hb```\B cbM((-fu`` x';n\("v%u6~:8:F )T@TH HQAA|D,LG&[lnP%Vif^ %t,e`` %x( 0000007666 00000 n Two announcements have been made this year by Alcatel-Lucent and many of you might think they are connected. 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. 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. It doesnt prevent a company from declaring bankruptcy. About Change submenu. |@5=Ni!_DKZ89_<9Fa0MU)C2:)}yH0u g>.]uj&G([mRgm=G-MA5@au%l :vz,!MM@\Torx9 d:'FK]M2| )@,F/3H4(-A &.}qp@|te\j|Y#|:Op:[JAa9@gTj-@J The Columbus Dispatch Tuesday February 16, 2016 5:00 AM. Q5) Will the new IRS ruling on pensions affect our Lucent retirees taking this lump sum? In addition, Nokia will most probably create a Nokia (USA) subsidiary which would be completely subject to US laws. 0000015024 00000 n Learn more here. The Program Window is only in effect beginning July 20, 2015 and ends at 11:59 p.m. (EDT) on September 25, 2015. endstream endobj startxref 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. 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. You DO NOT have to accept this offer. I have many questions. 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. 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. A lump sum payout is the more exciting option of the two. 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. 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. A1) Alcatel-Lucent is making available financial and tax education services through Deloitte, an objective, third party organization, at no cost to you. 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. I'd point out however that not all wobble stools are bad. (And, you will understand why the company wants to end the pension promise because it was too generous.). Get Email Updates; Receive Text Alerts; Detect Your Local; Search; Services Laborer of Worldwide . Over the course of the last year the IRS . That is not necessarily true. A6) The new annuity is a recalculation, for certain individuals, of the old calculations and is still administered by the pension 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.) For example, hurricane & loss. sw Your guidance is very much appreciated. startxref 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. I need to continue to withdraw money from my pension to live. Some former employees might also have the opportunity to change their current annuity option to a different annuity form. Examples of those protections are: The Company may not retroactively reduce those benefits, once they are vested. About 55,000 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).
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