alcatel lucent pension lump sum alcatel lucent pension lump sum
i received an offer for a lump sum payout based on the incorrect monthly pension. 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. She writes a weekly personal finance column syndicated in major newspapers by Tribune Content Agency. For media inquiries, call CWA Communications at 202-434-1168 or emailnews@cwa-union.org. A2) This offer is strictly voluntary. I need to continue to withdraw money from my pension to live. 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). The premium amount will still be based on what your current monthly pension amount is today. Q6) What company is the new annuity going to be with? you the lump-sum payment. Early this year Alcatel-Lucent announced they were investigating offering a voluntary lump sum buy-out of retiree pensions. The lump-sum window runs from July 20 through September 25 and is completely voluntary. A schedule of those sessions is in the Financial and Tax Education Guide booklet provided in the program announcement package. endstream endobj 273 0 obj <>stream 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. Bottom Line: Rising rates reduce lump sums. Because this offer was already approved and in the works it is NOT impacted by the ruling. Choose your news we will deliver. Former employee, ATT/Lucent/Alcatel-Lucent is offering a lump sum buyout of our pensions. Recipients have the option to do nothing and will continue to receive their current monthly annuity payments. xoH-Ge/+Uj%_lQ8B\R,Nk;Od.''M[fy%'mNd/i(-*i_EvS4H.fx3Vpe 130 E. Randolph St. You have until September to decide and you should use the time to consult with someone who can review your individual situation. Synopsis of Material Modifications Alcatel-Lucent Retirement . In fact Alcatel-Lucent was a foreign company and they could not take our pension funds. 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. Call 1-888-232-4111 and select "Retirement and Investments", then select "Pension". In fact these two announcements are not connected. 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.) Just go to www.immediateannuities.com, and insert your age, gender, state, and the lump sum amount you have to invest. The Program is not being offered to everyone. For media inquiries, call CWA Communications at 202-434-1168 or emailnews@cwa-union.org. Alcatel-Lucent announced it was being purchased by Nokia. Therefore, the company cannot just take money from the pension plan and use it for other things. Alcatel-Lucent announced it was being purchased by Nokia. A2) This offer is strictly voluntary. 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 New York, NY 10017-4036, Chicago Office 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). Terry Savage is a nationally recognized expert on personal finance, the economy and the markets. My son in Corby, your life and leadership have been an inspiration to us all. Tenth Floor Therefore, the company cannot just take money from the pension plan and use it for other things. 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. trailer 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. Thank y. Terry Says: Well, first of all, you have one fact wrong. 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. 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. Approximately 75,000 eligible former employees, surviving beneficiaries and alternate payees of Alcatel-Lucent have begun receiving formal lump-sum window notices. web design and development by new target, inc. Legislation and Politics. More on Alcatel-Lucent retiree and pension issues and the acquisition by Nokia. To search for a combination of terms, use quotations and the & symbol. Get Email Updates; Receive Text Alerts; Detect Your Local; Search; Services Laborer of Worldwide . In fact, at this years CWA T&T Leadership conference, our Research Department conducted a workshop on trends in Pension de-risking and bargaining. Plan assets are protected from being used for purposes other than providing benefits (or reasonable administrative expenses). BIs Article search uses Boolean search capabilities. I am 64 yrs. The advisor asked: What are the details around Alcatel-Lucents lump sum offer to former employees?. 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 685 Third Avenue Learn more here. Early this year Alcatel-Lucent announced they were investigating offering a voluntary lump sum buy-out of retiree pensions. r?Yw-g{A8se? Jx^m!xDC8p:PI((`![G EkrQXADX 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. L Ne`8H3*00\?0 Z* 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. Vm}O%TimaUMG60)f 6(jvR NEZ;[R!m))62Kr)7;yPedf`zms 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. 0000015986 00000 n Health & Safety Fact Sheets ; Legislation & Politics ; News & Events 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. 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. If you roll to Fidelity, Vanguard, or T. Rowe Price they will handle both the investment and withdrawal planning for you. I'd point out however that not all wobble stools are bad. at the current rate of yearly allocations given by the employer. To do so, however, the employer must prove to a bankruptcy court or to the PBGC . Questions Regarding the Alcatel-Lucent Pension Lump Sum Buyout. <]>> They could do that by purchasing annuities through an insurance company. 0000014974 00000 n You will receive your first bill in mid-November for your December coverage. 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. under the Plan to a one-time, lump-sum payment. 0000000016 00000 n Sign up and get the best of News delivered straight to your email inbox, free of charge. If you dont have a choice, but must take the lump sum offered, then I suggest rolling it to an IRA as described above. (What you might be thinking is that an IRA is less secure from creditors than a pension payout, and that would be correct.) A lump sum payout is the more exciting option of the two. hbbd```b``z "kd(d? To consistently deliver news, research and analysis to the executives who manage the flow of funds in the institutional investment market. 569 0 obj <>stream Or you could wait a few years to buy an. 0000001958 00000 n Some former employees might also have the opportunity to change their current annuity option to a different annuity form. 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 Alcatel-Lucent's U.S. pension plans, the funding policy is to contribute amounts to the . Any money left over in the fund the company would have to pay a penalty tax on. You point out that the pension trust is overfunded, and inflation has taken its toll, particularly on long-time retirees. You can have automatic monthly withdrawals, or take money out at any time. 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). 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. 0000000776 00000 n For media inquiries, call CWA Communications at 202-434-1168 or emailnews@cwa-union.org. 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. 0000002392 00000 n Alcatel-Lucent announced it was being purchased by Nokia. 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. 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. 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. What asset class is best for corporate plans' growth investments when using LDI? 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 Former employee, ATT/Lucent/Alcatel-Lucent is offering a lump sum buyout of our pensions. You may also contact the Alcatel-Lucent Retiree Lump Sum Window Benefits Center at (866) 617-7164. IF the company decided to terminate the plan they would have to do it under government guidelines. 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. I am 64 yrs. 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. View all Financial Planning / Retirement questions. That new car or luxurious vacation may not . 0000008372 00000 n Hello Terry, To read about CWA Members, Leadership or Industries, visit ourAbout page. A6) The new annuity is a recalculation, for certain individuals, of the old calculations and is still administered by the pension plan. Q5) Will the new IRS ruling on pensions affect our Lucent retirees taking this lump sum? Last week retirees received the first official notice of the lump sum offering. I have many questions. 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 need to continue to withdraw money from my pension to live. 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. In addition, Nokia will most probably create a Nokia (USA) subsidiary which would be completely subject to US laws. To search specifically for more than one word, put the search term in quotation marks. TAJ6LuR.u(NdLN_Ht)txF%K.)/|q1oO|uB+t{?ZQWH^ hsPZ=+,wz/ 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. Currently IL does not charge on pension income? Biggest Lucent Pension Drop in a Generation. Pros and Cons of Lump Sum Pension Payouts. 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). old, single, working fulltime, and in great health (knock on wood). This offer, called the Alcatel-Lucent Retiree Lump-Sum Window Program, formally began on July 20, 2015 and ended on September 25, 2015. In fact these two announcements are not connected. 0000002947 00000 n The attached information (cover letterprogram announcementFTE Guide) will be mailed by Alcatel-Lucent to eligible Plan participants beginning tomorrow, Friday, June 26, 2015. [|c-Ur7fg Jlh>{.OQQ ,FuZr"\>`k_,&^[\z^ :;@. @V6l "{1 In terms of the Nokia merger There is a fear since Nokia is a foreign company our pensions would no longer be protected. If you are eligible for a lump sum, you may be able to get a significantly . The lump sum amount, if not invested, will hold me for 13 yrs. Skip up main content . But keep in mind that a lump sum pension payout makes it easier to overspend in retirement. 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 If you are not familiar with these principles, here are some quick tips. "It is an excuse to put money into their underfunded plan . This means that there are specific guidelines that must be followed under federal law. If the plan is not fully-funded, the employer may apply for a distress termination if the employer is in financial distress. Q2) Do I have to take this lump sum buyout offer? 0 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. The National Association of Plan Advisors is a non-profit professional society. 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 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. 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. You may also contact the Alcatel-Lucent Retiree Lump Sum Window Benefits Center at (866) 617-7164. What You Can Do on the YBR Website If you are now receiving benefits: View your payment confirmations and history; 0000009608 00000 n For example, workers compensation. %%EOF 0000014070 00000 n 17 24 endstream endobj startxref 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. HWmkF}J\l|MiJ(R~H'g![3(!yrqK.//n+BS2bj~BT g8neSlI9oC9/rgczB7e DC4eUS;,'uq_6#:87lS1YA(V[cEUXq#\"?v,|nSIE%v](4h vZJz'^ 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 . Traditionally, when interest rates rise by 1% the amount in an Lucent employee's lump-sum will drop by 8 - 12%. Everyones situation is different and unique to them. %PDF-1.5 % 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. Last week retirees received the first official notice of the lump sum offering. Again, this is an extremely important decision and it requires careful consideration. Their answer is that there are no plans for a cost-of-living raise. Used with permission. It is a sizable amount of money. The Columbus Dispatch Tuesday February 16, 2016 5:00 AM. Two announcements have been made this year by Alcatel-Lucent and many of you might think they are connected. If you choose to do nothing, your current monthly pension payments will continue. 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. Menu burger Close thin Facebook Twitter Google plus Linked in Reddit Email arrow-right-sm arrow-right Loading Home Buying Calculators hb```\B cbM((-fu`` x';n\("v%u6~:8:F )T@TH HQAA|D,LG&[lnP%Vif^ %t,e`` %x( One more point, just because our pension are protected now, we should not assume it will always be this way. tS 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. 40 0 obj <>stream %PDF-1.4 % Columbia Threadneedle Investments (Columbia Threadneedle) is the global brand name of the Columbia and Threadneedle group of companies. 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. endstream endobj 272 0 obj <>stream xref So assuming that you are not going to be sued, this is strictly a financial planning question. old, single, working fulltime, and in great health (knock on wood). 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 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. In fact Alcatel-Lucent was a foreign company and they could not take our pension funds. One of them is offering lump sum buy-outs. hmk0"tzc7hh:(}&5se(|EV i"0W-kb@@.P|,rQfd\e.9thw)SV"\N2,]Ew9gmP?e? Eligible former employees are NOT required to make any changes to how or when they receive their Plan benefits. Advisor action items: Talk the your Alcatel-Lucent clients who may be affected. Jobs, Health Care & Retirement Security . If I roll it over, say into an IRA, then the income becomes taxable. Plan assets are protected from being used for purposes other than providing benefits (or reasonable administrative expenses). %PDF-1.7 % It is a sizable amount of money. Figuring this out is very simple. for subscribing, you are all set for your money saving tips. 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. 2023 Communications Workers of America, AFL-CIO, CLC All Rights Reserved | Site Map | Privacy Policy. This will limit your search to that combination of words. 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. 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. 0000015024 00000 n 3QxbOJZL3 i`/ 4(yKH.WT=\}LN8V^*~& While a pension annuity offers a fixed monthly income, a. 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. 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. 0 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. Leadership. 0000011786 00000 n 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 $26.2 billion in projected benefit obligations, for a funding ratio of 115%, according to the companys most recent 20-F filing. One option is to take the lump sum and park it in a money-market fund currently paying more than 4% until better investment opportunities come along. Currently the LTPP is funded at approximately 149%. Privacy PolicyTerms of UseCopyright. Alcatel-Lucent to expand lump-sum offer to 32,000 more participants Alcatel-Lucent completes buy-in for U.K. pension fund, eyes full buyout Alcatel-Lucent enters into second buy-in for U.K . hkkG@$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# Please review the attached documents for complete information regarding this Program. \?Q8za"mb CMz>GWcgeXSoGcg z!#}'`yOx"(:otxJ+;`Oc56d jnSf;Tm;H8b`i@5@(^hq;X8@d]EXr|w^>|K3Y6g9skZy&jteg}aBM\ju.Ks8XpOTi#Dl8gCx. 8bOM4JDEEE3`%y1OSwR;jysrU ;(SRg3,}tc qR{SeL1E9im|6';Ye]DHH. That will get you a guaranteed stream of (fully taxable) income for as long as you live. A3) The language on page 10 is standard language. Your guidance is very much appreciated. XWyTfnzp@EA0DEqD" sure enough, the lack of stability does bring a certain focus - which, to your point, can be Great article. Workers' Rights Button submenu. Copyright 2023by NAPA, Compliance Administrator (TPA) Evaluation. You may also contact the Nokia Benefits Resource Center. %%EOF More on Alcatel-Lucent retiree and pension issues and the acquisition by Nokia. As we get more information, we will publish it on this site. About Change submenu. Suite 3200 268 0 obj <> endobj Early this year Alcatel-Lucent announced they were investigating offering a voluntary lump sum buy-out of retiree pensions. %%EOF Even if they are, that does not mean you should take it. Alcatel-Lucent also recommends recipients of the offer consult with their personal financial planner and/or tax advisor before making a decision. 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. Case of the Week: Do Roth Recharacterizations Still Exist? 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. 0000010715 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").
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