Questions Regarding the Alcatel-Lucent Pension Lump Sum Buyout. 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. 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. 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 A2) This offer is strictly voluntary. A5) The new ruling by the IRS addresses discontinuing offering a lump sum buy out in certain circumstances going forward. 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. 0000007454 00000 n To read about CWA Members, Leadership or Industries, visit ourAbout page. The Columbus Dispatch Tuesday February 16, 2016 5:00 AM. endstream endobj 273 0 obj <>stream endstream endobj 548 0 obj <>stream That is not necessarily true. In Column D, at your life. *4w| sX8#.i_96"he@;(e[*'m'-Ksbzgh k@0n`76Cdi} fK0/h. {j Careers at CWA. Choose your news we will deliver. 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. \?Q8za"mb CMz>GWcgeXSoGcg z!#}'`yOx"(:otxJ+;`Oc56d jnSf;Tm;H8b`i@5@(^hq;X8@d]EXr|w^>|K3Y6g9skZy&jteg}aBM\ju.Ks8XpOTi#Dl8gCx. 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 After all, getting a huge influx of cash into your account upon retirement would make anyone jump for joy. 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. History. But keep in mind that a lump sum pension payout makes it easier to overspend in retirement. 685 Third Avenue Leadership. |@5=Ni!_DKZ89_<9Fa0MU)C2:)}yH0u g>.]uj&G([mRgm=G-MA5@au%l :vz,!MM@\Torx9 d:'FK]M2| Alcatel-Lucent announced it was being purchased by Nokia. New York, NY 10017-4036, Chicago Office 0 tS 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). Hello Terry, i receive a pension from alcatel-lucent. endstream endobj 272 0 obj <>stream 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. To read about CWA Members, Leadership or Industries, visit ourAbout page. A lump sum pension distribution offers the flexibility of being able to spend or invest your retirement savings any way you see fit. 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. 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. hbbd```b``z "kd(d? Because this offer was already approved and in the works it is NOT impacted by the ruling. We have raised the question with Nokia. at the current rate of yearly allocations given by the employer. 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'^ hbbd```b``A$Sd9&@A vX{> These mailings detail a one-time opportunity to convert their remaining annuity payments under the Alcatel-Lucent Retirement Income Plan or Lucent Technologies Inc. Pension Plan to a lump-sum payment. Again, this is an extremely important decision and it requires careful consideration. It is in the companys self-interest to keep the pension plan healthy because if it is not, they cannot pay for retiree medical from the plan and they have a contract saying they will pay retiree medical through the end of 2019. under the Plan to a one-time, lump-sum payment. 297 0 obj <>stream I'd point out however that not all wobble stools are bad. THIS PROGRAM IS STRICTLY VOLUNTARY! a835gQ00]=8gVYROU4CCXghhr'Hcbo2.0k7.8-1pC*A#=W[K!F$R# 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. She writes a weekly personal finance column syndicated in major newspapers by Tribune Content Agency. "It is an excuse to put money into their underfunded plan . "9:@$;dIs0&w@qY }*#l8l 0 XWyTfnzp@EA0DEqD" I have many questions. That new car or luxurious vacation may not . 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. endstream endobj startxref 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. Q3) Page 10 of the Alcatel-Lucent Retiree Lump Sum Window booklet says the company has rights to terminate either plan, etc. It is a sizable amount of money. Early this year Alcatel-Lucent announced they were investigating offering a voluntary lump sum buy-out of retiree pensions. 0000011786 00000 n One more point, just because our pension are protected now, we should not assume it will always be this way. I have many questions. I need to continue to withdraw money from my pension to live. r?Yw-g{A8se? Jx^m!xDC8p:PI((`![G EkrQXADX The attached information (cover letterprogram announcementFTE Guide) will be mailed by Alcatel-Lucent to eligible Plan participants beginning tomorrow, Friday, June 26, 2015. 0000010715 00000 n Call 1-888-232-4111 and select "Retirement and Investments", then select "Pension". trailer ~n]A9iRD wkvU@HB8E8JKkt>:O) 0000012893 00000 n endstream endobj startxref 0000001958 00000 n Their answer is that there are no plans for a cost-of-living raise. The CWA actuaries will review them to be sure that how they are being calculated is correct. A lump sum payout is the more exciting option of the two. If I do decide to take it, what are my investment options to continue to withdraw on a monthly or yearly basis? Everyones situation is different and unique to them. 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. Skip up main content . 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). 0000000016 00000 n %%EOF Case of the Week: Do Roth Recharacterizations Still Exist? I am 64 yrs. Biggest Lucent Pension Drop in a Generation. 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. 268 0 obj <> endobj Alcatel-Lucent Old Scheme, London, completed a 100 million ($123.7 million) buy-in with Boarding Insurance Core. What asset class is best for corporate plans' growth investments when using LDI? 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.) startxref %PDF-1.4 % Social Security Solvency: Is it Really That Bad? (And, you will understand why the company wants to end the pension promise because it was too generous.). 0000001040 00000 n To search for a combination of terms, use quotations and the & symbol. 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. 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. 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. 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? In fact Alcatel-Lucent was a foreign company and they could not take our pension funds. 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. sure enough, the lack of stability does bring a certain focus - which, to your point, can be Great article. 0 284 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 In addition, Nokia will most probably create a Nokia (USA) subsidiary which would be completely subject to US laws. You DO NOT have to accept this offer. PBGC proposes pension plan risk-transfer disclosure requirement, Ford pension plan funding holds steady in 2014, COPYRIGHT 2023 BUSINESS INSURANCE HOLDINGS. Therefore, the company cannot just take money from the pension plan and use it for other things. 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. Plan assets are protected from being used for purposes other than providing benefits (or reasonable administrative expenses). The lump-sum window runs from July 20 through September 25 and is completely voluntary. You may also contact the Alcatel-Lucent Retiree Lump Sum Window Benefits Center at (866) 617-7164. If you dont have a choice, but must take the lump sum offered, then I suggest rolling it to an IRA as described above. 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. 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. 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. Pros and Cons of Lump Sum Pension Payouts. 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.) In fact these two announcements are not connected. A schedule of those sessions is in the Financial and Tax Education Guide booklet provided in the program announcement package. Thank y. Terry Says: Well, first of all, you have one fact wrong. Health & Safety Fact Sheets ; Legislation & Politics ; News & Events 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. In fact these two announcements are not connected. 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). One of them is offering lump sum buy-outs. for subscribing, you are all set for your money saving tips. )@,F/3H4(-A &.}qp@|te\j|Y#|:Op:[JAa9@gTj-@J xref 0000017395 00000 n More on Alcatel-Lucent retiree and pension issues and the acquisition by Nokia. CWA is not in the position to interpret the companys offer and does not give out financial advice. The materials contained herein are intended for instruction only and are not a substitute for professional advice. The Program is not being offered to everyone. Last week retirees received the first official notice of the lump sum offering. To: Formerly Represented Retirees of Alcatel-Lucent, Subject: Questions Regarding the Alcatel-Lucent Pension Lump Sum Buyout. You will see offerings frm major insurance companies giving you a monthly payout. To consistently deliver news, research and analysis to the executives who manage the flow of funds in the institutional investment market. J m^?bSL&MM>^S!OYuFG]2_w*'~vmi"chV6{8E&`(72jje&}\MlKM+TLigQC42BIj4^C};)k"C+"?j^SDE5[k]83/pivCNSa+| $ You DO NOT have to accept this offer. 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. 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 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. A3) The language on page 10 is standard language. Q2) Do I have to take this lump sum buyout offer? Q2) Do I have to take this lump sum buyout offer? 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. 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# 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. The CWA actuaries will review them to be sure that how they are being calculated is correct. Q5) Will the new IRS ruling on pensions affect our Lucent retirees taking this lump sum? Just go to www.immediateannuities.com, and insert your age, gender, state, and the lump sum amount you have to invest. You have until September to decide and you should use the time to consult with someone who can review your individual situation. 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 Early this year Alcatel-Lucent announced they were investigating offering a voluntary lump sum buy-out of retiree pensions. Alcatel-Lucent also recommends recipients of the offer consult with their personal financial planner and/or taxes advisor before making a decision. Early this year Alcatel-Lucent announced they were investigating offering a voluntary lump sum buy-out of retiree pensions. 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). 0000015986 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. 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. Plan assets are protected from being used for purposes other than providing benefits (or reasonable administrative expenses). Sign up and get the best of News delivered straight to your email inbox, free of charge. More on Alcatel-Lucent retiree and pension issues and the acquisition by Nokia. A1) Alcatel-Lucent is making available financial and tax education services through Deloitte, an objective, third party organization, at no cost to you. 0000007666 00000 n 3QxbOJZL3 i`/ 4(yKH.WT=\}LN8V^*~& Please review the attached documents for complete information regarding this Program. Following are the questions, with the answers, that we have received to date. Sign up to receive Terrys free newsletter!! Copyright 2023by NAPA, Compliance Administrator (TPA) Evaluation. 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. 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. 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. old, single, working fulltime, and in great health (knock on wood). Even if they are, that does not mean you should take it. 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. You may also contact the Alcatel-Lucent Retiree Lump Sum Window Benefits Center at (866) 617-7164. !J,3pNM,A|f5\mCl]) Pv&hhy 6u!2|)z9F_!lE^wxDaOo8^ %SE91q45),lEQN8:O $o2dhcflYK fgOlK: 2SYu*q"H3;Ydi37t6K^4nb8o?/zYK 0000014070 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. Privacy PolicyTerms of UseCopyright. Synopsis of Material Modifications Alcatel-Lucent Retirement . 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. If you are not familiar with these principles, here are some quick tips. (What you might be thinking is that an IRA is less secure from creditors than a pension payout, and that would be correct.) This will limit your search to that combination of words. Traditionally, when interest rates rise by 1% the amount in an Lucent employee's lump-sum will drop by 8 - 12%. 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. 569 0 obj <>stream The advisor asked: What are the details around Alcatel-Lucents lump sum offer to former employees?. 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 may also contact the Nokia Benefits Resource Center. 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"). 17 24 Figuring this out is very simple. %PDF-1.7 % What questions should I be asking? To do so, however, the employer must prove to a bankruptcy court or to the PBGC . 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. xoH-Ge/+Uj%_lQ8B\R,Nk;Od.''M[fy%'mNd/i(-*i_EvS4H.fx3Vpe i received an offer for a lump sum payout based on the incorrect monthly pension. My son in Corby, your life and leadership have been an inspiration to us all. 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.) Some former employees might also have the opportunity to change their current annuity option to a different annuity form. Tenth Floor These resources include group sessions, individual sessions and a Financial and Tax Education Tool. they have known this for over 30 days and i am not making any headway with getting it corrected. Bottom Line: Rising rates reduce lump sums. Learn more here. In fact these two announcements are not connected. 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 . 0000015024 00000 n BIs Article search uses Boolean search capabilities. 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 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. 0000014929 00000 n 17 0 obj <> endobj I am 64 yrs. 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.) 0000001515 00000 n While a pension annuity offers a fixed monthly income, a. 0000014974 00000 n 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. 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. It is a sizable amount of money. A recent call with a financial advisor in California is representative of a common question related to pension de-risking and lump sums. 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. That will get you a guaranteed stream of (fully taxable) income for as long as you live. 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 Holy cow, Nevin, you wrote a white paper! 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. 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. 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. Examples of those protections are: The Company may not retroactively reduce those benefits, once they are vested. Pension Plans offer lump sums periodically, but typically change once a year. Can the company terminate the pension plan? Vm}O%TimaUMG60)f 6(jvR NEZ;[R!m))62Kr)7;yPedf`zms 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. In fact, at this years CWA T&T Leadership conference, our Research Department conducted a workshop on trends in Pension de-risking and bargaining.
