Social Security Solvency: Is it Really That Bad? %PDF-1.7 % 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. you the lump-sum payment. Eligible former employees are NOT required to make any changes to how or when they receive their Plan benefits. Approximately 75,000 eligible former employees, surviving beneficiaries and alternate payees of Alcatel-Lucent have begun receiving formal lump-sum window notices. One more point, just because our pension are protected now, we should not assume it will always be this way. 0000008051 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 . Two announcements have been made this year by Alcatel-Lucent and many of you might think they are connected. But keep in mind that a lump sum pension payout makes it easier to overspend in retirement. PBGC proposes pension plan risk-transfer disclosure requirement, Ford pension plan funding holds steady in 2014, COPYRIGHT 2023 BUSINESS INSURANCE HOLDINGS. (What you might be thinking is that an IRA is less secure from creditors than a pension payout, and that would be correct.) Biggest Lucent Pension Drop in a Generation. 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.) %%EOF 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 |@5=Ni!_DKZ89_<9Fa0MU)C2:)}yH0u g>.]uj&G([mRgm=G-MA5@au%l :vz,!MM@\Torx9 d:'FK]M2| 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 . Case of the Week: Do Roth Recharacterizations Still Exist? 0000014070 00000 n 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. 0000001958 00000 n sw Legislation and Politics. I am 64 yrs. 0000001121 00000 n To read about CWA Members, Leadership or Industries, visit ourAbout page. A schedule of those sessions is in the Financial and Tax Education Guide booklet provided in the program announcement package. 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. The attached information (cover letterprogram announcementFTE Guide) will be mailed by Alcatel-Lucent to eligible Plan participants beginning tomorrow, Friday, June 26, 2015. So assuming that you are not going to be sued, this is strictly a financial planning question. What You Can Do on the YBR Website If you are now receiving benefits: View your payment confirmations and history; Pros and Cons of Lump Sum Pension Payouts. Q7) What happens to my healthcare if I take this lump sum buy out? 0000000016 00000 n The advisor asked: What are the details around Alcatel-Lucents lump sum offer to former employees?. A2) This offer is strictly voluntary. 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 TAJ6LuR.u(NdLN_Ht)txF%K.)/|q1oO|uB+t{?ZQWH^ hsPZ=+,wz/ 0000007454 00000 n hmk0"tzc7hh:(}&5se(|EV i"0W-kb@@.P|,rQfd\e.9thw)SV"\N2,]Ew9gmP?e? 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. 17 24 We have raised the question with Nokia. I have many questions. 0000015024 00000 n XWyTfnzp@EA0DEqD" 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. If you choose to do nothing, your current monthly pension payments will continue. I have many questions. The Columbus Dispatch Tuesday February 16, 2016 5:00 AM. Last week retirees received the first official notice of the lump sum offering. 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. 2015 Columbia Management Investment Advisers, LLC. Because this offer was already approved and in the works it is NOT impacted by the ruling. If I roll it over, say into an IRA, then the income becomes taxable. Alcatel-Lucent Pension Functionality, London, completing a 100 billion ($123.7 million) buy-in at Pension Insurance Corp. Alcatel-Lucent enters into second buy-in for U.K. pension plan | Pensions & Investments - Brink's offers lump-sum payment to former employees 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. The materials contained herein are intended for instruction only and are not a substitute for professional advice. If you are not familiar with these principles, here are some quick tips. Alcatel-Lucent also recommends recipients of the offer consult with their personal financial planner and/or taxes advisor before making a decision. 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. In fact these two announcements are not connected. In addition, Nokia will most probably create a Nokia (USA) subsidiary which would be completely subject to US laws. Some former employees might also have the opportunity to change their current annuity option to a different annuity form. A lump sum payout is the more exciting option of the two. Last week retirees received the first official notice of the lump sum offering. Sign up and get the best of News delivered straight to your email inbox, free of charge. startxref Columbia Threadneedle Investments (Columbia Threadneedle) is the global brand name of the Columbia and Threadneedle group of companies. Over the course of the last year the IRS . Recipients have the option to do nothing and will continue to receive their current monthly annuity payments. 0 I need to continue to withdraw money from my pension to live. Vm}O%TimaUMG60)f 6(jvR NEZ;[R!m))62Kr)7;yPedf`zms 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. Privacy PolicyTerms of UseCopyright. A5) The new ruling by the IRS addresses discontinuing offering a lump sum buy out in certain circumstances going forward. 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). If you dont have a choice, but must take the lump sum offered, then I suggest rolling it to an IRA as described above. Again, this is an extremely important decision and it requires careful consideration. %PDF-1.5 % To search for a combination of terms, use quotations and the & symbol. 0000001515 00000 n Alcatel-Lucent announced it was being purchased by Nokia. endstream endobj startxref Everyones situation is different and unique to them. 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 To do so, however, the employer must prove to a bankruptcy court or to the PBGC . 0000012893 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. at the current rate of yearly allocations given by the employer. 0000002597 00000 n Careers at CWA. Q2) Do I have to take this lump sum buyout offer? under the Plan to a one-time, lump-sum payment. 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. Tenth Floor 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. To search specifically for more than one word, put the search term in quotation marks. 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 . xref 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. 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. To read about CWA Members, Leadership or Industries, visit ourAbout page. Menu burger Close thin Facebook Twitter Google plus Linked in Reddit Email arrow-right-sm arrow-right Loading Home Buying Calculators 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. Learn more here. Please review the attached documents for complete information regarding this Program. They could do that by purchasing annuities through an insurance company. For media inquiries, call CWA Communications at 202-434-1168 or emailnews@cwa-union.org. Plan assets are protected from being used for purposes other than providing benefits (or reasonable administrative expenses). You will receive your first bill in mid-November for your December coverage. "It is an excuse to put money into their underfunded plan . Alcatel-Lucent Retiree Lump Sum Window Benefits Center at (866) 617-7164. 0000011786 00000 n HWmkF}J\l|MiJ(R~H'g, a Lucent Retiree Lump Sum Window Program (the Program). You have until September to decide and you should use the time to consult with someone who can review your individual situation. Choose your news we will deliver. More on Alcatel-Lucent retiree and pension issues and the acquisition by Nokia. Your guidance is very much appreciated. THIS PROGRAM IS STRICTLY VOLUNTARY! BIs Article search uses Boolean search capabilities. 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. 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. 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. Alcatel-Lucent Old Scheme, London, completed a 100 million ($123.7 million) buy-in with Boarding Insurance Core. So, if you are evaluating whether or not to take the lump sum, you should not take the lump just because you are fearful about the Nokia merger. 130 E. Randolph St. If the lump sum is not anywhere near enough to generate the same monthly income as your pension, then if given the choice you will want to stick with the pension promise. Q5) Will the new IRS ruling on pensions affect our Lucent retirees taking this lump sum? One option is to take the lump sum and park it in a money-market fund currently paying more than 4% until better investment opportunities come along. It is in the companys self-interest to keep the pension plan healthy because if it is not, they cannot pay for retiree medical from the plan and they have a contract saying they will pay retiree medical through the end of 2019. To: Formerly Represented Retirees of Alcatel-Lucent, Subject: Questions Regarding the Alcatel-Lucent Pension Lump Sum Buyout. 284 0 obj <>/Filter/FlateDecode/ID[<401FD2CD3C4E2E4F956EAD5ECE542FCA><5B6DADCB6C7B5D49B41567324319F557>]/Index[268 30]/Info 267 0 R/Length 90/Prev 182067/Root 269 0 R/Size 298/Type/XRef/W[1 3 1]>>stream I need to continue to withdraw money from my pension to live. 17 0 obj <> endobj Q1) Where can I get more information about this offer? The company said in its fourth-quarter earnings release that the offer, to take place in the fourth quarter of 2015, will run concurrently with a previously announced offer for retirees in its U.S. Management Pension Plan. "9:@$;dIs0&w@qY }*#l8l 0 544 0 obj <> endobj Alcatel-Lucent also recommends recipients of the offer consult with their personal financial planner and/or tax advisor before making a decision. While a pension annuity offers a fixed monthly income, a. If the plan is not fully-funded, the employer may apply for a distress termination if the employer is in financial distress. endstream endobj 273 0 obj <>stream This means that there are specific guidelines that must be followed under federal law. a835gQ00]=8gVYROU4CCXghhr'Hcbo2.0k7.8-1pC*A#=W[K!F$R# Questions Regarding the Alcatel-Lucent Pension Lump Sum Buyout. for subscribing, you are all set for your money saving tips. Main Office 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.) If you are eligible for a lump sum, you may be able to get a significantly . Early this year Alcatel-Lucent announced they were investigating offering a voluntary lump sum buy-out of retiree pensions. Retirement Policy Proponent Sen. Ben Cardin Announces His Own Retirement, The Opportunity and Obligation in Small Plan Coverage: Hubs Joe DeNoyior, Expert Excoriated in Excessive Fee Dismissal. You point out that the pension trust is overfunded, and inflation has taken its toll, particularly on long-time retirees. The Program is not being offered to everyone. Plan assets are protected from being used for purposes other than providing benefits (or reasonable administrative expenses). IF the company decided to terminate the plan they would have to do it under government guidelines. A lump sum pension distribution offers the flexibility of being able to spend or invest your retirement savings any way you see fit. endstream endobj 548 0 obj <>stream 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). Thank y. Terry Says: Well, first of all, you have one fact wrong. All of this is costly to the company. 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. What about the Pension Protection Act? `lsIf8 y[e?f-IE2.H54&%6h2SQ HUE{RV3@@ 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. xuSn0>DBH I$}C.SwB#s_u_0Bt lV:~D[S84eF}dKq_ ={K~922&1BOz:`. In fact Alcatel-Lucent was a foreign company and they could not take our pension funds. Alcatel-Lucent announced it was being purchased by Nokia. I am 64 yrs. Or you could wait a few years to buy an. 0000014974 00000 n 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. She writes a weekly personal finance column syndicated in major newspapers by Tribune Content Agency. Even if they are, that does not mean you should take it. 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 DO NOT have to accept this offer. %PDF-1.4 % 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. Recipients have the option to do nothing and will continue to receive their current monthly annuity payments. This offer, called the Alcatel-Lucent Retiree Lump-Sum Window Program, formally began on July 20, 2015 and ended on September 25, 2015. Today, the pension plan is covered by ERISA and is protected by the Pension Benefit Guaranty Corporation (PBGC). 0000017395 00000 n A3) The language on page 10 is standard language. Alcatel-Lucent announced it was being purchased by Nokia. 0000007666 00000 n Former employee, ATT/Lucent/Alcatel-Lucent is offering a lump sum buyout of our pensions. Hello Terry, 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.) Health & Safety Fact Sheets ; Legislation & Politics ; News & Events As we get more information, we will publish it on this site. 40 0 obj <>stream Q3) Page 10 of the Alcatel-Lucent Retiree Lump Sum Window booklet says the company has rights to terminate either plan, etc. Holy cow, Nevin, you wrote a white paper! Any money left over in the fund the company would have to pay a penalty tax on. 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. hbbd```b``A$Sd9&@A vX{> If you have further questions once you receive your package of materials, please contact the Alcatel-Lucent Retiree Lump Sum Window Benefits Center at (866) 617-7164. In fact that is why the CWA had to lobby for expanded legislation to continue to provide for collectively bargained medical and death benefits from the Plan. [|c-Ur7fg Jlh>{.OQQ ,FuZr"\>`k_,&^[\z^ :;@. @V6l "{1 Bottom Line: Rising rates reduce lump sums. Can the company terminate the pension plan? I have to decide by Sept. 11, 2015. The permissions that Alcatel-Lucent (ALU) had to file to amend its Pension Plan to offer the lump sum program started long before the Nokia merger was announced. The National Association of Plan Advisors is a non-profit professional society. Sign up to receive Terrys free newsletter!! Rob Kozlowski writes for Pensions & Investments, a sister publication of Business Insurance. Our legal department and our research department both came to the same conclusion: U.S. law that currently protects the pension benefits of our members will still apply if Nokia purchases Alcatel Lucent. Alcatel-Lucent, Murray Hill, N.J., announced Friday it plans to extend an offer of an immediate lump-sum payment to about 32,000 retirees and former employees in its U.S. Inactive. One of them is offering lump sum buy-outs. You can make some investments that are likely to generate growth and income to support your retirement needs. Currently the LTPP is funded at approximately 149%. hkkG@$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# For Alcatel-Lucent's U.S. pension plans, the funding policy is to contribute amounts to the . 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. In terms of the Nokia merger -- There is a fear since Nokia is a foreign company our pensions would no longer be protected. !J,3pNM,A|f5\mCl]) Pv&hhy 6u!2|)z9F_!lE^wxDaOo8^ %SE91q45),lEQN8:O $o2dhcflYK fgOlK: 2SYu*q"H3;Ydi37t6K^4nb8o?/zYK A1) Alcatel-Lucent is making available financial and tax education services through Deloitte, an objective, third party organization, at no cost to you. After all, getting a huge influx of cash into your account upon retirement would make anyone jump for joy. CWA is not in the position to interpret the companys offer and does not give out financial advice. Copyright 2023by NAPA, Compliance Administrator (TPA) Evaluation. 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, at this years CWA T&T Leadership conference, our Research Department conducted a workshop on trends in Pension de-risking and bargaining. r?Yw-g{A8se? Jx^m!xDC8p:PI((`![G EkrQXADX 0000001040 00000 n Currently IL does not charge on pension income? Former employee, ATT/Lucent/Alcatel-Lucent is offering a lump sum buyout of our pensions. Suite 3200 It is a sizable amount of money. 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. Call 1-888-232-4111 and select "Retirement and Investments", then select "Pension". View all Financial Planning / Retirement questions. 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 I'd point out however that not all wobble stools are bad. hb```\B cbM((-fu`` x';n\("v%u6~:8:F )T@TH HQAA|D,LG&[lnP%Vif^ %t,e`` %x( 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 %%EOF The Program Window is only in effect beginning July 20, 2015 and ends at 11:59 p.m. (EDT) on September 25, 2015. What asset class is best for corporate plans' growth investments when using LDI? That new car or luxurious vacation may not . Just go to www.immediateannuities.com, and insert your age, gender, state, and the lump sum amount you have to invest. 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 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.
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