For media inquiries, call CWA Communications at 202-434-1168 or emailnews@cwa-union.org. 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.) That is not necessarily true. TAJ6LuR.u(NdLN_Ht)txF%K.)/|q1oO|uB+t{?ZQWH^ hsPZ=+,wz/ Social Security Solvency: Is it Really That Bad? The lump-sum window runs from July 20 through September 25 and is completely voluntary. 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 130 E. Randolph St. 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. 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. Please review the attached documents for complete information regarding this Program. New York, NY 10017-4036, Chicago Office XWyTfnzp@EA0DEqD" A6) The new annuity is a recalculation, for certain individuals, of the old calculations and is still administered by the pension plan. 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. 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. For media inquiries, call CWA Communications at 202-434-1168 or emailnews@cwa-union.org. Call 1-888-232-4111 and select "Retirement and Investments", then select "Pension". The CWA actuaries will review them to be sure that how they are being calculated is correct. Last week retirees received the first official notice of the lump sum offering. Q1) Where can I get more information about this offer? That new car or luxurious vacation may not . To do so, however, the employer must prove to a bankruptcy court or to the PBGC . Vm}O%TimaUMG60)f 6(jvR NEZ;[R!m))62Kr)7;yPedf`zms It doesnt prevent a company from declaring bankruptcy. A1) Alcatel-Lucent is making available financial and tax education services through Deloitte, an objective, third party organization, at no cost to you. As we get more information, we will publish it on this site. 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. Skip up main content . A schedule of those sessions is in the Financial and Tax Education Guide booklet provided in the program announcement package. The lump-sum window runs from July 20 through September 25 and is completely voluntary. Rob Kozlowski writes for Pensions & Investments, a sister publication of Business Insurance. L Ne`8H3*00\?0 Z* If you dont have a choice, but must take the lump sum offered, then I suggest rolling it to an IRA as described above. !J,3pNM,A|f5\mCl]) Pv&hhy 6u!2|)z9F_!lE^wxDaOo8^ %SE91q45),lEQN8:O $o2dhcflYK fgOlK: 2SYu*q"H3;Ydi37t6K^4nb8o?/zYK 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 You can have automatic monthly withdrawals, or take money out at any time. Case of the Week: Do Roth Recharacterizations Still Exist? 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 . 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. So assuming that you are not going to be sued, this is strictly a financial planning question. Plan assets are protected from being used for purposes other than providing benefits (or reasonable administrative expenses). I have to decide by Sept. 11, 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. web design and development by new target, inc. Two announcements have been made this year by Alcatel-Lucent and many of you might think they are connected. 0000001121 00000 n endstream endobj 273 0 obj <>stream 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. If you choose to do nothing, your current monthly pension payments will continue. All of this is costly to the company. 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 Old Scheme, London, completed a 100 million ($123.7 million) buy-in with Boarding Insurance Core. I need to continue to withdraw money from my pension to live. Because this offer was already approved and in the works it is NOT impacted by the ruling. Examples of those protections are: The Company may not retroactively reduce those benefits, once they are vested. 0000014974 00000 n Early this year Alcatel-Lucent announced they were investigating offering a voluntary lump sum buy-out of retiree pensions. Pros and Cons of Lump Sum Pension Payouts. In addition, Nokia will most probably create a Nokia (USA) subsidiary which would be completely subject to US laws. 0000001958 00000 n Pension Plans offer lump sums periodically, but typically change once a year. 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. (What you might be thinking is that an IRA is less secure from creditors than a pension payout, and that would be correct.) Again, this is an extremely important decision and it requires careful consideration. Menu burger Close thin Facebook Twitter Google plus Linked in Reddit Email arrow-right-sm arrow-right Loading Home Buying Calculators under the Plan to a one-time, lump-sum payment. Approximately 75,000 eligible former employees, surviving beneficiaries and alternate payees of Alcatel-Lucent have begun receiving formal lump-sum window notices. 17 0 obj <> endobj Can the company terminate the pension plan? If you are not familiar with these principles, here are some quick tips. 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. 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 In fact these two announcements are not connected. 0000014070 00000 n Alcatel-Lucent Retiree Lump Sum Window Benefits Center at (866) 617-7164. The Program is not being offered to everyone. You will receive your first bill in mid-November for your December coverage. sure enough, the lack of stability does bring a certain focus - which, to your point, can be Great article. 0000014929 00000 n 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. 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. 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. 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. Your guidance is very much appreciated. %PDF-1.5 % A5) The new ruling by the IRS addresses discontinuing offering a lump sum buy out in certain circumstances going forward. 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. Bottom Line: Rising rates reduce lump sums. For example, hurricane & loss. To search specifically for more than one word, put the search term in quotation marks. startxref If you are eligible for a lump sum, you may be able to get a significantly . xref The lump sum amount, if not invested, will hold me for 13 yrs. About Change submenu. Hello Terry, Q2) Do I have to take this lump sum buyout offer? In fact Alcatel-Lucent was a foreign company and they could not take our pension funds. Privacy PolicyTerms of UseCopyright. Examples of those protections are: The Company may not retroactively reduce those benefits, once they are vested. To: Formerly Represented Retirees of Alcatel-Lucent, Subject: Questions Regarding the Alcatel-Lucent Pension Lump Sum Buyout. In fact these two announcements are not connected. This will limit your search to that combination of words. 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.) Therefore, the company cannot just take money from the pension plan and use it for other things. What You Can Do on the YBR Website If you are now receiving benefits: View your payment confirmations and history; Recipients have the option to do nothing and will continue to receive their current monthly annuity payments. 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. 544 0 obj <> endobj Used with permission. HWmkF}J\l|MiJ(R~H'g4|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. Leadership. This means that there are specific guidelines that must be followed under federal law. 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 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. Jobs, Health Care & Retirement Security . 17 24 To read about CWA Members, Leadership or Industries, visit ourAbout page. hbbd```b``A$Sd9&@A vX{> The advisor asked: What are the details around Alcatel-Lucents lump sum offer to former employees?. 268 0 obj <> endobj In mid-July, eligible retirees will be sent a Your Benefit Decision Kit, which will show the amount of the individuals lump sum payment and any new annuity options (if applicable) that are available to them under the Program. 2015 Columbia Management Investment Advisers, LLC. In terms of the Nokia merger -- There is a fear since Nokia is a foreign company our pensions would no longer be protected. "9:@$;dIs0&w@qY }*#l8l 0 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. Traditionally, when interest rates rise by 1% the amount in an Lucent employee's lump-sum will drop by 8 - 12%. 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.) A2) This offer is strictly voluntary. PBGC proposes pension plan risk-transfer disclosure requirement, Ford pension plan funding holds steady in 2014, COPYRIGHT 2023 BUSINESS INSURANCE HOLDINGS. 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. 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. 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. I need to continue to withdraw money from my pension to live. 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. Today, the pension plan is covered by ERISA and is protected by the Pension Benefit Guaranty Corporation (PBGC). 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). Alcatel-Lucent announced it was being purchased by Nokia. hmk0"tzc7hh:(}&5se(|EV i"0W-kb@@.P|,rQfd\e.9thw)SV"\N2,]Ew9gmP?e? One more point, just because our pension are protected now, we should not assume it will always be this way. 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. You DO NOT have to accept this offer. 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. History. Following are the questions, with the answers, that we have received to date. %%EOF Main Office For example, workers compensation. The Program Window is only in effect beginning July 20, 2015 and ends at 11:59 p.m. (EDT) on September 25, 2015. 0000002392 00000 n Even if they are, that does not mean you should take it. Eligible former employees are NOT required to make any changes to how or when they receive their Plan benefits. Early this year Alcatel-Lucent announced they were investigating offering a voluntary lump sum buy-out of retiree pensions. In fact these two announcements are not connected. 0000008051 00000 n hbbd```b``z "kd(d? xb```b``d`e`y |,@Q9F90*oZWcS;ik5H0frrx@,V"a"C8jqP In Column D, at your life. BIs Article search uses Boolean search capabilities. Recipients have the option to do nothing and will continue to receive their current monthly annuity payments. If you choose to do nothing, your current monthly pension payments will continue. Thank y. Terry Says: Well, first of all, you have one fact wrong. 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.) A2) This offer is strictly voluntary. 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. 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. 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. 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. To read about CWA Members, Leadership or Industries, visit ourAbout page. I am 64 yrs. r?Yw-g{A8se? Jx^m!xDC8p:PI((`![G EkrQXADX And it's true that one dollar in 1990 purchasing power requires $2.73 today. 0000008372 00000 n 0000007666 00000 n A4) What page 15 of the Financial and Tax book is referring to is that if Alcatel-Lucent declares bankruptcy and does not have enough money to cover the liabilities of the plan the PBGC would take over the plan. For specifics, click on the employer's name to see the company's press release, SEC filing, or news story announcing the change (some links may expire). CWA is not in the position to interpret the companys offer and does not give out financial advice. hkkG@$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# (And, you will understand why the company wants to end the pension promise because it was too generous.). 0000022178 00000 n Alcatel-Lucent announced it was being purchased by Nokia. That is not necessarily true. endstream endobj 272 0 obj <>stream 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. Even if they are, that does not mean you should take it. View all Financial Planning / Retirement questions. 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. Columbia Threadneedle Investments (Columbia Threadneedle) is the global brand name of the Columbia and Threadneedle group of companies. Therefore, the company cannot just take money from the pension plan and use it for other things. To search for a combination of terms, use quotations and the & symbol. If the plan is not fully-funded, the employer may apply for a distress termination if the employer is in financial distress. 0000011786 00000 n In fact Alcatel-Lucent was a foreign company and they could not take our pension funds. `lsIf8 y[e?f-IE2.H54&%6h2SQ HUE{RV3@@ What questions should I be asking? More on Alcatel-Lucent retiree and pension issues and the acquisition by Nokia. You point out that the pension trust is overfunded, and inflation has taken its toll, particularly on long-time retirees. 569 0 obj <>stream Former employee, ATT/Lucent/Alcatel-Lucent is offering a lump sum buyout of our pensions. old, single, working fulltime, and in great health (knock on wood). You may also contact the Alcatel-Lucent Retiree Lump Sum Window Benefits Center at (866) 617-7164. 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. 0000001515 00000 n That will get you a guaranteed stream of (fully taxable) income for as long as you live. You can make some investments that are likely to generate growth and income to support your retirement needs. If I roll it over, say into an IRA, then the income becomes taxable. 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. sw %%EOF \?Q8za"mb CMz>GWcgeXSoGcg z!#}'`yOx"(:otxJ+;`Oc56d jnSf;Tm;H8b`i@5@(^hq;X8@d]EXr|w^>|K3Y6g9skZy&jteg}aBM\ju.Ks8XpOTi#Dl8gCx. For Alcatel-Lucent's U.S. pension plans, the funding policy is to contribute amounts to the . 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. To read about CWA Members, Leadership or Industries, visit ourAbout page. What about the Pension Protection Act? I'd point out however that not all wobble stools are bad. you the lump-sum payment. You DO NOT have to accept this offer. endstream endobj startxref In addition, Nokia will most probably create a Nokia (USA) subsidiary which would be completely subject to US laws. Illinois DOES NOT currently tax IRA withdrawals. 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. 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). xuSn0>DBH I$}C.SwB#s_u_0Bt lV:~D[S84eF}dKq_ ={K~922&1BOz:`. Currently IL does not charge on pension income? 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. Health & Safety Fact Sheets ; Legislation & Politics ; News & Events 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 0000010715 00000 n 0 You have until September to decide and you should use the time to consult with someone who can review your individual situation. Figuring this out is very simple. %PDF-1.4 % 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. Over the course of the last year the IRS . Former employee, ATT/Lucent/Alcatel-Lucent is offering a lump sum buyout of our pensions.
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