alcatel lucent pension lump sum

That is not necessarily true. If you dont have a choice, but must take the lump sum offered, then I suggest rolling it to an IRA as described above. 0000017395 00000 n 40 0 obj <>stream 0000010715 00000 n Main Office A5) The new ruling by the IRS addresses discontinuing offering a lump sum buy out in certain circumstances going forward. You can make some investments that are likely to generate growth and income to support your retirement needs. 0000007454 00000 n 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.) I need to continue to withdraw money from my pension to live. More on Alcatel-Lucent retiree and pension issues and the acquisition by Nokia. 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. What questions should I be asking? 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). Terry Savage is a nationally recognized expert on personal finance, the economy and the markets. CWA is not in the position to interpret the companys offer and does not give out financial advice. 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. 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. Synopsis of Material Modifications Alcatel-Lucent Retirement . Advisor action items: Talk the your Alcatel-Lucent clients who may be affected. %%EOF Alcatel-Lucent announced it was being purchased by Nokia. Alcatel-Lucent also recommends recipients of the offer consult with their personal financial planner and/or tax advisor before making a decision. In addition, Nokia will most probably create a Nokia (USA) subsidiary which would be completely subject to US laws. 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.) Sign up to receive Terrys free newsletter!! 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 Call 1-888-232-4111 and select "Retirement and Investments", then select "Pension". Examples of those protections are: The Company may not retroactively reduce those benefits, once they are vested. 0000008372 00000 n xb```b``d`e`y |,@Q9F90*oZWcS;ik5H0frrx@,V"a"C8jqP Vm}O%TimaUMG60)f 6(jvR NEZ;[R!m))62Kr)7;yPedf`zms We have raised the question with Nokia. If you are not familiar with these principles, here are some quick tips. 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). Q6) What company is the new annuity going to be with? 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.) Even if they are, that does not mean you should take it. 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. You DO NOT have to accept this offer. Your guidance is very much appreciated. You will receive your first bill in mid-November for your December coverage. xref Recipients have the option to do nothing and will continue to receive their current monthly annuity payments. To search specifically for more than one word, put the search term in quotation marks. [|c-Ur7fg Jlh>{.OQQ ,FuZr"\>`k_,&^[\z^ :;@. @V6l "{1 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. 0000011786 00000 n I have to decide by Sept. 11, 2015. 0000008051 00000 n Alcatel-Lucent Retiree Lump Sum Window Benefits Center at (866) 617-7164. Tenth Floor <]>> The Columbus Dispatch Tuesday February 16, 2016 5:00 AM. Alcatel-Lucent also recommends recipients of the offer consult with their personal financial planner and/or taxes advisor before making a decision. a835gQ00]=8gVYROU4CCXghhr'Hcbo2.0k7.8-1pC*A#=W[K!F$R# And it's true that one dollar in 1990 purchasing power requires $2.73 today. I am 64 yrs. Despite a July 9 announcement that the IRS intends to eliminate lump-sum windows for retirees already receiving annuity payments, the Alcatel-Lucent lump-sum window is allowed to proceed under a special prenotice grandfather clause for programs announced prior to July 9. 17 24 We strongly advise you to gather as much information as possible and to consult with your own personal financial planner, legal advisor and/or tax advisor. In fact these two announcements are not connected. Alcatel-Lucent has contracted with Deloitte to provide Financial and Tax Education Individual Sessions through a number of live group sessions across the U.S. and a series of webcasts, as well as the opportunity for individual sessions via phone appointments. old, single, working fulltime, and in great health (knock on wood). In mid-July, eligible retirees will be sent a Your Benefit Decision Kit, which will show the amount of the individuals lump sum payment and any new annuity options (if applicable) that are available to them under the Program. Get access to the news, research and analysis of events affecting the retirement and institutional money management businesses from a worldwide network of reporters and editors. 0000015986 00000 n xoH-Ge/+Uj%_lQ8B\R,Nk;Od.''M[fy%'mNd/i(-*i_EvS4H.fx3Vpe To read about CWA Members, Leadership or Industries, visit ourAbout page. hbbd```b``A$Sd9&@A vX{> Former employee, ATT/Lucent/Alcatel-Lucent is offering a lump sum buyout of our pensions. %PDF-1.7 % You have until September to decide and you should use the time to consult with someone who can review your individual situation. 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. 0000009608 00000 n 0000001040 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. Columbia Threadneedle Investments (Columbia Threadneedle) is the global brand name of the Columbia and Threadneedle group of companies. IF the company decided to terminate the plan they would have to do it under government guidelines. The Program Window is only in effect beginning July 20, 2015 and ends at 11:59 p.m. (EDT) on September 25, 2015. About Change submenu. hmk0"tzc7hh:(}&5se(|EV i"0W-kb@@.P|,rQfd\e.9thw)SV"\N2,]Ew9gmP?e? The premium amount will still be based on what your current monthly pension amount is today. 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. 130 E. Randolph St. Case of the Week: Do Roth Recharacterizations Still Exist? That new car or luxurious vacation may not . In addition, Nokia will most probably create a Nokia (USA) subsidiary which would be completely subject to US laws. The attachment labeled Lump Sum Program Announcement identifies who is and is not eligible. Or you could wait a few years to buy an. To read about CWA Members, Leadership or Industries, visit ourAbout page. 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. You DO NOT have to accept this offer. XWyTfnzp@EA0DEqD" 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. A recent call with a financial advisor in California is representative of a common question related to pension de-risking and lump sums. One of them is offering lump sum buy-outs. New York, NY 10017-4036, Chicago Office startxref In fact these two announcements are not connected. L Ne`8H3*00\?0 Z* Examples of those protections are: The Company may not retroactively reduce those benefits, once they are vested. 297 0 obj <>stream In fact, at this years CWA T&T Leadership conference, our Research Department conducted a workshop on trends in Pension de-risking and bargaining. A2) This offer is strictly voluntary. Currently IL does not charge on pension income? 0000002392 00000 n 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. trailer Alcatel-Lucent announced it was being purchased by Nokia. In terms of the Nokia merger -- There is a fear since Nokia is a foreign company our pensions would no longer be protected. For example, hurricane & loss. %%EOF The Pension Protection Act helps to ensure the plan is appropriately funded. 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. 2015 Columbia Management Investment Advisers, LLC. 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 *4w| sX8#.i_96"he@;(e[*'m'-Ksbzgh k@0n`76Cdi} fK0/h. {j Get Email Updates; Receive Text Alerts; Detect Your Local; Search; Services Laborer of Worldwide . 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. Leadership. Former employee, ATT/Lucent/Alcatel-Lucent is offering a lump sum buyout of our pensions. To consistently deliver news, research and analysis to the executives who manage the flow of funds in the institutional investment market. Everyones situation is different and unique to them. 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. under the Plan to a one-time, lump-sum payment. ~n]A9iRD wkvU@HB8E8JKkt>:O) 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 That will get you a guaranteed stream of (fully taxable) income for as long as you live. Traditionally, when interest rates rise by 1% the amount in an Lucent employee's lump-sum will drop by 8 - 12%. 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. You will see offerings frm major insurance companies giving you a monthly payout. r?Yw-g{A8se? Jx^m!xDC8p:PI((`![G EkrQXADX Last week retirees received the first official notice of the lump sum offering. A6) The new annuity is a recalculation, for certain individuals, of the old calculations and is still administered by the pension plan. If you are eligible for a lump sum, you may be able to get a significantly . I have many questions. Any money left over in the fund the company would have to pay a penalty tax on. Alcatel-Lucent announced it was being purchased by Nokia. J m^?bSL&MM>^S!OYuFG]2_w*'~vmi"chV6{8E&`(72jje&}\MlKM+TLigQC42BIj4^C};)k"C+"?j^SDE5[k]83/pivCNSa+| $ |@5=Ni!_DKZ89_<9Fa0MU)C2:)}yH0u g>.]uj&G([mRgm=G-MA5@au%l :vz,!MM@\Torx9 d:'FK]M2| `lsIf8 y[e?f-IE2.H54&%6h2SQ HUE{RV3@@ So assuming that you are not going to be sued, this is strictly a financial planning question. To: Formerly Represented Retirees of Alcatel-Lucent, Subject: Questions Regarding the Alcatel-Lucent Pension Lump Sum Buyout. Careers at CWA. 2023 Communications Workers of America, AFL-CIO, CLC All Rights Reserved | Site Map | Privacy Policy. The CWA actuaries will review them to be sure that how they are being calculated is correct. For Alcatel-Lucent's U.S. pension plans, the funding policy is to contribute amounts to the . 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. Currently the LTPP is funded at approximately 149%. You can have automatic monthly withdrawals, or take money out at any time. Health & Safety Fact Sheets ; Legislation & Politics ; News & Events Social Security Solvency: Is it Really That Bad? web design and development by new target, inc. 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 media inquiries, call CWA Communications at 202-434-1168 or emailnews@cwa-union.org. Bottom Line: Rising rates reduce lump sums. HWmkF}J\l|MiJ(R~H'g or another eligible retirement plan. 0000015024 00000 n This will limit your search to that combination of words. As we get more information, we will publish it on this site. 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. To search for a combination of terms, use quotations and the & symbol. You may also contact the Nokia Benefits Resource Center. 0000012893 00000 n For a standard termination the company would have to show the PBGC that the plan has enough money to pay all the benefits owed to participants. As we get more information, we will publish it on this site. In fact these two announcements are not connected. 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. Q2) Do I have to take this lump sum buyout offer? endstream endobj 548 0 obj <>stream THIS PROGRAM IS STRICTLY VOLUNTARY! 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 received an offer for a lump sum payout based on the incorrect monthly pension. 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. 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. 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. If you choose to do nothing, your current monthly pension payments will continue. 0000002597 00000 n To do so, however, the employer must prove to a bankruptcy court or to the PBGC . If I do decide to take it, what are my investment options to continue to withdraw on a monthly or yearly basis? 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. 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. I have many questions. Questions Regarding the Alcatel-Lucent Pension Lump Sum Buyout. Early this year Alcatel-Lucent announced they were investigating offering a voluntary lump sum buy-out of retiree pensions. 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. For example, workers compensation. Illinois DOES NOT currently tax IRA withdrawals. Last week retirees received the first official notice of the lump sum offering. The lump sum amount, if not invested, will hold me for 13 yrs. 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 If you choose to do nothing, your current monthly pension payments will continue. Again, this is an extremely important decision and it requires careful consideration. You have until September to decide and you should use the time to consult with someone who can review your individual situation. "It is an excuse to put money into their underfunded plan . You may also contact the Alcatel-Lucent Retiree Lump Sum Window Benefits Center at (866) 617-7164. 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. 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. !J,3pNM,A|f5\mCl]) Pv&hhy 6u!2|)z9F_!lE^wxDaOo8^ %SE91q45),lEQN8:O $o2dhcflYK fgOlK: 2SYu*q"H3;Ydi37t6K^4nb8o?/zYK They could do that by purchasing annuities through an insurance company. 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. Jobs, Health Care & Retirement Security . It doesnt prevent a company from declaring bankruptcy. To read about CWA Members, Leadership or Industries, visit ourAbout page. 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. 569 0 obj <>stream Figuring this out is very simple. 0 Because this offer was already approved and in the works it is NOT impacted by the ruling. 0000000776 00000 n 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. View all Financial Planning / Retirement questions. A2) This offer is strictly voluntary. Legislation and Politics. 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. sw Q3) Page 10 of the Alcatel-Lucent Retiree Lump Sum Window booklet says the company has rights to terminate either plan, etc. After all, getting a huge influx of cash into your account upon retirement would make anyone jump for joy. Eligible former employees are NOT required to make any changes to how or when they receive their Plan benefits. 0 If you roll to Fidelity, Vanguard, or T. Rowe Price they will handle both the investment and withdrawal planning for you. Their answer is that there are no plans for a cost-of-living raise. Alcatel-Lucent announced it was being purchased by Nokia. Sign up and get the best of News delivered straight to your email inbox, free of charge. What asset class is best for corporate plans' growth investments when using LDI? they have known this for over 30 days and i am not making any headway with getting it corrected. 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'd point out however that not all wobble stools are bad. 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# As of Dec. 31, 2013, the U.S. pension funds had $30.1 billion in assets and $26.2 billion in projected benefit obligations, for a funding ratio of 115%, according to the companys most recent 20-F filing. The National Association of Plan Advisors is a non-profit professional society. But keep in mind that a lump sum pension payout makes it easier to overspend in retirement. One of them is offering lump sum buy-outs. endstream endobj startxref Information about your Pension Plan benefit is also accessible, and pension transactions can be initiated, online through the Your Benefits Resources (YBR) website at http://resources.hewitt.com/nokia, 24 hours a day, seven 3QxbOJZL3 i`/ 4(yKH.WT=\}LN8V^*~& For media inquiries, call CWA Communications at 202-434-1168 or emailnews@cwa-union.org. 0000007666 00000 n tS This is an extremely important decision and it requires careful consideration. The materials contained herein are intended for instruction only and are not a substitute for professional advice. Alcatel-Lucent plans to make a voluntary lump-sum offer in 2015 to about 45,000 U.S. retirees and former employees vested in its U.S. defined benefit pension funds, according to a 6-K filing with . Information and opinions provided by third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by Columbia Threadneedle. Thank y. Terry Says: Well, first of all, you have one fact wrong. Pension Plans offer lump sums periodically, but typically change once a year. "9:@$;dIs0&w@qY }*#l8l 0 You may also contact the Alcatel-Lucent Retiree Lump Sum Window Benefits Center at (866) 617-7164.

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