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. xb```b``d`e`y |,@Q9F90*oZWcS;ik5H0frrx@,V"a"C8jqP Early this year Alcatel-Lucent announced they were investigating offering a voluntary lump sum buy-out of retiree pensions. This means that there are specific guidelines that must be followed under federal law. If you roll to Fidelity, Vanguard, or T. Rowe Price they will handle both the investment and withdrawal planning for you. Q2) Do I have to take this lump sum buyout offer? New York, NY 10017-4036, Chicago Office 0000002947 00000 n 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. "9:@$;dIs0&w@qY }*#l8l 0 I have many questions. 685 Third Avenue 0000007454 00000 n TAJ6LuR.u(NdLN_Ht)txF%K.)/|q1oO|uB+t{?ZQWH^ hsPZ=+,wz/ The company said in its fourth-quarter earnings release that the offer, to take place in the fourth quarter of 2015, will run concurrently with a previously announced offer for retirees in its U.S. Management Pension Plan. A7) If your healthcare premium is currently being deducted from your monthly pension check and you convert your monthly pension payments to a lump sum payment during the program, you will be billed directly for your healthcare premium and you MUST pay the premium in order to continue to receive your healthcare. `lsIf8 y[e?f-IE2.H54&%6h2SQ HUE{RV3@@ 0000014070 00000 n 268 0 obj <> endobj In a lump sum buy-out the company is paying the present value of the pension amount so that it takes the liability off their books, which means they no longer have to pay PBGC premiums or manage the money themselves. If you choose to do nothing, your current monthly pension payments will continue. In fact these two announcements are not connected. 0000010715 00000 n Privacy PolicyTerms of UseCopyright. endstream endobj startxref hkkG@$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# A schedule of those sessions is in the Financial and Tax Education Guide booklet provided in the program announcement package. Over the course of the last year the IRS . The Program is not being offered to everyone. You DO NOT have to accept this offer. To search for a combination of terms, use quotations and the & symbol. 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. 0 Some former employees might also have the opportunity to change their current annuity option to a different annuity form. You DO NOT have to accept this offer. Below is a list of employers that have announced that they are offering lump-sum pension buyouts to certain groups of employees, former employees, or retirees. 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). ~n]A9iRD wkvU@HB8E8JKkt>:O) The premium amount will still be based on what your current monthly pension amount is today. You may also contact the Alcatel-Lucent Retiree Lump Sum Window Benefits Center at (866) 617-7164. 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. 40 0 obj <>stream Jobs, Health Care & Retirement Security . If you are not familiar with these principles, here are some quick tips. 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. 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 In fact these two announcements are not connected. Examples of those protections are: The Company may not retroactively reduce those benefits, once they are vested. Currently IL does not charge on pension income? 0000014974 00000 n Everyones situation is different and unique to them. In Column D, at your life. HWmkF}J\l|MiJ(R~H'g 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. 0000012893 00000 n 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 . hmk0"tzc7hh:(}&5se(|EV i"0W-kb@@.P|,rQfd\e.9thw)SV"\N2,]Ew9gmP?e? 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). For example, workers compensation. 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. 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. 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. 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.) 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. 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 will get you a guaranteed stream of (fully taxable) income for as long as you live. BIs Article search uses Boolean search capabilities. old, single, working fulltime, and in great health (knock on wood). 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. In fact, at this years CWA T&T Leadership conference, our Research Department conducted a workshop on trends in Pension de-risking and bargaining. Q6) What company is the new annuity going to be with? "It is an excuse to put money into their underfunded plan . Vm}O%TimaUMG60)f 6(jvR NEZ;[R!m))62Kr)7;yPedf`zms Q3) Page 10 of the Alcatel-Lucent Retiree Lump Sum Window booklet says the company has rights to terminate either plan, etc. endstream endobj 272 0 obj <>stream Q2) Do I have to take this lump sum buyout offer? To do so, however, the employer must prove to a bankruptcy court or to the PBGC . i receive a pension from alcatel-lucent. Health & Safety Fact Sheets ; Legislation & Politics ; News & Events It doesnt prevent a company from declaring bankruptcy. As we get more information, we will publish it on this site. A5) The new ruling by the IRS addresses discontinuing offering a lump sum buy out in certain circumstances going forward. It is a sizable amount of money. 2015 Columbia Management Investment Advisers, LLC. 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. If I roll it over, say into an IRA, then the income becomes taxable. Alcatel-Lucent announced it was being purchased by Nokia. Call 1-888-232-4111 and select "Retirement and Investments", then select "Pension". A3) The language on page 10 is standard language. I need to continue to withdraw money from my pension to live. Thank y. Terry Says: Well, first of all, you have one fact wrong. 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. Again, this is an extremely important decision and it requires careful consideration. A lump sum payout is the more exciting option of the two. 0000009608 00000 n 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. 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. Recipients have the option to do nothing and will continue to receive their current monthly annuity payments. IF the company decided to terminate the plan they would have to do it under government guidelines. 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. About 55,000 This will limit your search to that combination of words. In terms of the Nokia merger -- There is a fear since Nokia is a foreign company our pensions would no longer be protected. Approximately 75,000 eligible former employees, surviving beneficiaries and alternate payees of Alcatel-Lucent have begun receiving formal lump-sum window notices. How to Avoid Taxes on Lump Sum Pension Payout - SmartAsset You can avoid taxes on a lump sum by rolling it over into an individual retirement account (IRA) or another eligible retirement plan. These resources include group sessions, individual sessions and a Financial and Tax Education Tool. The attachment labeled Lump Sum Program Announcement identifies who is and is not eligible. That is not necessarily true. endstream endobj startxref 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. You will receive your first bill in mid-November for your December coverage. Used with permission. hbbd```b``z "kd(d? 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"). CWA is not in the position to interpret the companys offer and does not give out financial advice. Therefore, the company cannot just take money from the pension plan and use it for other things. What questions should I be asking? Everyones situation is different and unique to them. xoH-Ge/+Uj%_lQ8B\R,Nk;Od.''M[fy%'mNd/i(-*i_EvS4H.fx3Vpe 0000008372 00000 n endstream endobj 548 0 obj <>stream The CWA actuaries will review them to be sure that how they are being calculated is correct. 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 Two announcements have been made this year by Alcatel-Lucent and many of you might think they are connected. xref Questions Regarding the Alcatel-Lucent Pension Lump Sum Buyout. Former employee, ATT/Lucent/Alcatel-Lucent is offering a lump sum buyout of our pensions. 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. To read about CWA Members, Leadership or Industries, visit ourAbout page. Early this year Alcatel-Lucent announced they were investigating offering a voluntary lump sum buy-out of retiree pensions. 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. In fact these two announcements are not connected. Early this year Alcatel-Lucent announced they were investigating offering a voluntary lump sum buy-out of retiree pensions. They could do that by purchasing annuities through an insurance company. In fact Alcatel-Lucent was a foreign company and they could not take our pension funds. 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 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 Menu burger Close thin Facebook Twitter Google plus Linked in Reddit Email arrow-right-sm arrow-right Loading Home Buying Calculators Recipients have the option to do nothing and will continue to receive their current monthly annuity payments. Tenth Floor Last week retirees received the first official notice of the lump sum offering. I'd point out however that not all wobble stools are bad. Figuring this out is very simple. 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. To: Formerly Represented Retirees of Alcatel-Lucent, Subject: Questions Regarding the Alcatel-Lucent Pension Lump Sum Buyout. The lump sum amount, if not invested, will hold me for 13 yrs. This is an extremely important decision and it requires careful consideration. Careers at CWA. The ERISA consultants at the Learning Center Resource Desk, which is available through Columbia Threadneedle Investments, regularly receive calls from financial advisors on a broad array of technical topics related to IRAs and qualified retirement plans. 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). at the current rate of yearly allocations given by the employer. Choose your news we will deliver. What asset class is best for corporate plans' growth investments when using LDI? 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 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. You point out that the pension trust is overfunded, and inflation has taken its toll, particularly on long-time retirees. 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 Therefore, the company cannot just take money from the pension plan and use it for other things. The lump-sum window runs from July 20 through September 25 and is completely voluntary. For Alcatel-Lucent's U.S. pension plans, the funding policy is to contribute amounts to the . But keep in mind that a lump sum pension payout makes it easier to overspend in retirement. You have until September to decide and you should use the time to consult with someone who can review your individual situation. Advisor action items: Talk the your Alcatel-Lucent clients who may be affected. 0000015986 00000 n Two announcements have been made this year by Alcatel-Lucent and many of you might think they are connected. 2023 Communications Workers of America, AFL-CIO, CLC All Rights Reserved | Site Map | Privacy Policy. This offer, called the Alcatel-Lucent Retiree Lump-Sum Window Program, formally began on July 20, 2015 and ended on September 25, 2015. 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. [|c-Ur7fg Jlh>{.OQQ ,FuZr"\>`k_,&^[\z^ :;@. @V6l "{1 For media inquiries, call CWA Communications at 202-434-1168 or emailnews@cwa-union.org. For example, hurricane & loss. 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. web design and development by new target, inc. 3QxbOJZL3 i`/ 4(yKH.WT=\}LN8V^*~& I have many questions. Because this offer was already approved and in the works it is NOT impacted by the ruling. I need to continue to withdraw money from my pension to live. That new car or luxurious vacation may not . Can the company terminate the pension plan? 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. under the Plan to a one-time, lump-sum payment. 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. 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. Terry Savage is a nationally recognized expert on personal finance, the economy and the markets. XWyTfnzp@EA0DEqD" 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.) As we get more information, we will publish it on this site. To search specifically for more than one word, put the search term in quotation marks. A lump sum pension distribution offers the flexibility of being able to spend or invest your retirement savings any way you see fit. |@5=Ni!_DKZ89_<9Fa0MU)C2:)}yH0u g>.]uj&G([mRgm=G-MA5@au%l :vz,!MM@\Torx9 d:'FK]M2| 0000011786 00000 n 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 . In fact these two announcements are not connected. *4w| sX8#.i_96"he@;(e[*'m'-Ksbzgh k@0n`76Cdi} fK0/h. {j While a pension annuity offers a fixed monthly income, a. 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. for subscribing, you are all set for your money saving tips. 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. Some eligible former employees also had the opportunity to change their existing annuity option to a different annuity option. xuSn0>DBH I$}C.SwB#s_u_0Bt lV:~D[S84eF}dKq_ ={K~922&1BOz:`. %%EOF Early this year Alcatel-Lucent announced they were investigating offering a voluntary lump sum buy-out of retiree pensions. More on Alcatel-Lucent retiree and pension issues and the acquisition by Nokia. 0000000016 00000 n 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.). One of them is offering lump sum buy-outs. One more point, just because our pension are protected now, we should not assume it will always be this way. 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. hb```\B cbM((-fu`` x';n\("v%u6~:8:F )T@TH HQAA|D,LG&[lnP%Vif^ %t,e`` %x(