One more point, just because our pension are protected now, we should not assume it will always be this way. If you roll to Fidelity, Vanguard, or T. Rowe Price they will handle both the investment and withdrawal planning for you. 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 . The attached information (cover letterprogram announcementFTE Guide) will be mailed by Alcatel-Lucent to eligible Plan participants beginning tomorrow, Friday, June 26, 2015. One of them is offering lump sum buy-outs. Sign up to receive Terrys free newsletter!! 0000001121 00000 n Call 1-888-232-4111 and select "Retirement and Investments", then select "Pension". 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. a835gQ00]=8gVYROU4CCXghhr'Hcbo2.0k7.8-1pC*A#=W[K!F$R# Alcatel-Lucent announced it was being purchased by Nokia. Today, the pension plan is covered by ERISA and is protected by the Pension Benefit Guaranty Corporation (PBGC). old, single, working fulltime, and in great health (knock on wood). A5) The new ruling by the IRS addresses discontinuing offering a lump sum buy out in certain circumstances going forward. Even if they are, that does not mean you should take it. endstream endobj 272 0 obj <>stream The Columbus Dispatch Tuesday February 16, 2016 5:00 AM. 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 Q2) Do I have to take this lump sum buyout offer? A2) This offer is strictly voluntary. 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. Early this year Alcatel-Lucent announced they were investigating offering a voluntary lump sum buy-out of retiree pensions. Recipients have the option to do nothing and will continue to receive their current monthly annuity payments. 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. What asset class is best for corporate plans' growth investments when using LDI? Alcatel-Lucent Retiree Lump Sum Window Benefits Center at (866) 617-7164. Because this offer was already approved and in the works it is NOT impacted by the ruling. 0000007666 00000 n In terms of the Nokia merger -- There is a fear since Nokia is a foreign company our pensions would no longer be protected. In terms of the Nokia merger There is a fear since Nokia is a foreign company our pensions would no longer be protected. *4w| sX8#.i_96"he@;(e[*'m'-Ksbzgh k@0n`76Cdi} fK0/h. {j 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. 0000000776 00000 n 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). What questions should I be asking? 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 Alcatel-Lucent also recommends recipients of the offer consult with their personal financial planner and/or tax advisor before making a decision. Workers' Rights Button submenu. You will receive your first bill in mid-November for your December coverage. hbbd```b``z "kd(d? For example, hurricane & loss. 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 . old, single, working fulltime, and in great health (knock on wood). 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"). 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. Examples of those protections are: The Company may not retroactively reduce those benefits, once they are vested. xb```b``d`e`y |,@Q9F90*oZWcS;ik5H0frrx@,V"a"C8jqP Hello Terry, I need to continue to withdraw money from my pension to live. Plan assets are protected from being used for purposes other than providing benefits (or reasonable administrative expenses). 0000014974 00000 n %%EOF Early this year Alcatel-Lucent announced they were investigating offering a voluntary lump sum buy-out of retiree pensions. A recent call with a financial advisor in California is representative of a common question related to pension de-risking and lump sums. endstream endobj 548 0 obj <>stream What about the Pension Protection Act? For Alcatel-Lucent's U.S. pension plans, the funding policy is to contribute amounts to the . Vm}O%TimaUMG60)f 6(jvR NEZ;[R!m))62Kr)7;yPedf`zms If you are not familiar with these principles, here are some quick tips. "It is an excuse to put money into their underfunded plan . You may also contact the Alcatel-Lucent Retiree Lump Sum Window Benefits Center at (866) 617-7164. Pros and Cons of Lump Sum Pension Payouts. For media inquiries, call CWA Communications at 202-434-1168 or emailnews@cwa-union.org. Holy cow, Nevin, you wrote a white paper! I am 64 yrs. 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. Alcatel-Lucent announced it was being purchased by Nokia. 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. A1) Alcatel-Lucent is making available financial and tax education services through Deloitte, an objective, third party organization, at no cost to you. Legislation and Politics. 0000015024 00000 n To consistently deliver news, research and analysis to the executives who manage the flow of funds in the institutional investment market. In Column D, at your life. That is not necessarily true. endstream endobj startxref hmk0"tzc7hh:(}&5se(|EV i"0W-kb@@.P|,rQfd\e.9thw)SV"\N2,]Ew9gmP?e? 17 0 obj <> endobj 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.) To do so, however, the employer must prove to a bankruptcy court or to the PBGC . Menu burger Close thin Facebook Twitter Google plus Linked in Reddit Email arrow-right-sm arrow-right Loading Home Buying Calculators Everyones situation is different and unique to them. Terry Savage is a nationally recognized expert on personal finance, the economy and the markets. 130 E. Randolph St. Everyones situation is different and unique to them. trailer The National Association of Plan Advisors is a non-profit professional society. The attachment labeled Lump Sum Program Announcement identifies who is and is not eligible. View all Financial Planning / Retirement questions. Privacy PolicyTerms of UseCopyright. Former employee, ATT/Lucent/Alcatel-Lucent is offering a lump sum buyout of our pensions. If you choose to do nothing, your current monthly pension payments will continue. Recipients have the option to do nothing and will continue to receive their current monthly annuity payments. 17 24 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. hbbd```b``A$Sd9&@A vX{> Used with permission. If the plan is not fully-funded, the employer may apply for a distress termination if the employer is in financial distress. i received an offer for a lump sum payout based on the incorrect monthly pension. You DO NOT have to accept this offer. 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 For media inquiries, call CWA Communications at 202-434-1168 or emailnews@cwa-union.org. I'd point out however that not all wobble stools are bad. A decision by telecom company Alcatel-Lucent to move $3 billion out of a well-funded pension fund for retired workers into a fund for managers has union leaders worried about the long-term stability of the retirees' fund. 0000002947 00000 n 0000014929 00000 n endstream endobj 18 0 obj <> endobj 19 0 obj <>/ProcSet[/PDF/Text]/ExtGState<>>>/Type/Page>> endobj 20 0 obj <> endobj 21 0 obj <> endobj 22 0 obj <> endobj 23 0 obj <> endobj 24 0 obj <>stream received a package in the mail and realized my pension was based on leaving the company oct, 1982. i left the company on 7/15/85. Plan assets are protected from being used for purposes other than providing benefits (or reasonable administrative expenses). To: Formerly Represented Retirees of Alcatel-Lucent, Subject: Questions Regarding the Alcatel-Lucent Pension Lump Sum Buyout. Alcatel-Lucent, Murray Hill, N.J., announced Friday it plans to extend an offer of an immediate lump-sum payment to about 32,000 retirees and former employees in its U.S. Inactive Occupational Pension Plan. for subscribing, you are all set for your money saving tips. The Pension Protection Act helps to ensure the plan is appropriately funded. Currently the LTPP is funded at approximately 149%. For example, workers compensation. Q4) Also on page 15 in the Financial & Tax booklet, provided by the company, it says if they go broke we get nothing in a pension. Examples of those protections are: The Company may not retroactively reduce those benefits, once they are vested. Approximately 75,000 eligible former employees, surviving beneficiaries and alternate payees of Alcatel-Lucent have begun receiving formal lump-sum window notices. xuSn0>DBH I$}C.SwB#s_u_0Bt lV:~D[S84eF}dKq_ ={K~922&1BOz:`. 0000012893 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. 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. i receive a pension from alcatel-lucent. XWyTfnzp@EA0DEqD" Main Office Q3) Page 10 of the Alcatel-Lucent Retiree Lump Sum Window booklet says the company has rights to terminate either plan, etc. About 55,000 It is a sizable amount of money. %%EOF Advisor action items: Talk the your Alcatel-Lucent clients who may be affected. You point out that the pension trust is overfunded, and inflation has taken its toll, particularly on long-time retirees. Below the lump sum value in Column C, copy and paste the annual pension payout into every row for each year you live, till your life expectancy used in step 1. 0000000016 00000 n 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. In fact these two announcements are not connected. 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. All of this is costly to the company. 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. To search for a combination of terms, use quotations and the & symbol. TAJ6LuR.u(NdLN_Ht)txF%K.)/|q1oO|uB+t{?ZQWH^ hsPZ=+,wz/ Q5) Will the new IRS ruling on pensions affect our Lucent retirees taking this lump sum? `lsIf8 y[e?f-IE2.H54&%6h2SQ HUE{RV3@@ Early this year Alcatel-Lucent announced they were investigating offering a voluntary lump sum buy-out of retiree pensions. 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. Please review the attached documents for complete information regarding this Program. J m^?bSL&MM>^S!OYuFG]2_w*'~vmi"chV6{8E&`(72jje&}\MlKM+TLigQC42BIj4^C};)k"C+"?j^SDE5[k]83/pivCNSa+| $ !J,3pNM,A|f5\mCl]) Pv&hhy 6u!2|)z9F_!lE^wxDaOo8^ %SE91q45),lEQN8:O $o2dhcflYK fgOlK: 2SYu*q"H3;Ydi37t6K^4nb8o?/zYK You will see offerings frm major insurance companies giving you a monthly payout. sw For specifics, click on the employer's name to see the company's press release, SEC filing, or news story announcing the change (some links may expire). This one-time opportunity--called the Alcatel-Lucent Retiree Lump-Sum Window Program (the "Program")--formally began on July 20, 2015 and ended on September 25, 2015. In fact these two announcements are not connected. IF the company decided to terminate the plan they would have to do it under government guidelines. at the current rate of yearly allocations given by the employer. xoH-Ge/+Uj%_lQ8B\R,Nk;Od.''M[fy%'mNd/i(-*i_EvS4H.fx3Vpe To read about CWA Members, Leadership or Industries, visit ourAbout page. Alcatel-Lucent to expand lump-sum offer to 32,000 more participants Alcatel-Lucent completes buy-in for U.K. pension fund, eyes full buyout Alcatel-Lucent enters into second buy-in for U.K . Jobs, Health Care & Retirement Security . History. Some former employees might also have the opportunity to change their current annuity option to a different annuity form. In fact that is why the CWA had to lobby for expanded legislation to continue to provide for collectively bargained medical and death benefits from the Plan. hkkG@$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# Q7) What happens to my healthcare if I take this lump sum buy out? In fact Alcatel-Lucent was a foreign company and they could not take our pension funds. Former employee, ATT/Lucent/Alcatel-Lucent is offering a lump sum buyout of our pensions. It is a sizable amount of money. Therefore, the company cannot just take money from the pension plan and use it for other things. 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. they have known this for over 30 days and i am not making any headway with getting it corrected. Columbia Threadneedle Investments (Columbia Threadneedle) is the global brand name of the Columbia and Threadneedle group of companies. 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. A lump sum payout is the more exciting option of the two. Alcatel-Lucent also recommends recipients of the offer consult with their personal financial planner and/or taxes advisor before making a decision. 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. Pension Plans offer lump sums periodically, but typically change once a year. Leadership. 0000001040 00000 n Thank y. Terry Says: Well, first of all, you have one fact wrong. In fact, at this years CWA T&T Leadership conference, our Research Department conducted a workshop on trends in Pension de-risking and bargaining. Questions Regarding the Alcatel-Lucent Pension Lump Sum Buyout. Again, this is an extremely important decision and it requires careful consideration. %PDF-1.7 % Can the company terminate the pension plan? Copyright 2023by NAPA, Compliance Administrator (TPA) Evaluation. We have raised the question with Nokia. You have until September to decide and you should use the time to consult with someone who can review your individual situation. 569 0 obj <>stream You have until September to decide and you should use the time to consult with someone who can review your individual situation. If I roll it over, say into an IRA, then the income becomes taxable. "9:@$;dIs0&w@qY }*#l8l 0 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. Social Security Solvency: Is it Really That Bad? The lump-sum window runs from July 20 through September 25 and is completely voluntary. I need to continue to withdraw money from my pension to live. The CWA actuaries will review them to be sure that how they are being calculated is correct. ~n]A9iRD wkvU@HB8E8JKkt>:O) 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. A2) This offer is strictly voluntary. Two announcements have been made this year by Alcatel-Lucent and many of you might think they are connected. Case of the Week: Do Roth Recharacterizations Still Exist? A schedule of those sessions is in the Financial and Tax Education Guide booklet provided in the program announcement package. New York, NY 10017-4036, Chicago Office 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. 685 Third Avenue A6) The new annuity is a recalculation, for certain individuals, of the old calculations and is still administered by the pension plan. This is an extremely important decision and it requires careful consideration. In fact these two announcements are not connected. 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. [|c-Ur7fg Jlh>{.OQQ ,FuZr"\>`k_,&^[\z^ :;@. @V6l "{1 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. 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. THIS PROGRAM IS STRICTLY VOLUNTARY! 0000002392 00000 n Alcatel-Lucent Old Scheme, London, completed a 100 million ($123.7 million) buy-in with Boarding Insurance Core. 0000014070 00000 n Q1) Where can I get more information about this offer? (And, you will understand why the company wants to end the pension promise because it was too generous.). They could do that by purchasing annuities through an insurance company. About Change submenu. In fact these two announcements are not connected. endstream endobj startxref 0000001958 00000 n You may also contact the Nokia Benefits Resource Center. r?Yw-g{A8se? Jx^m!xDC8p:PI((`![G EkrQXADX 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 2023 Communications Workers of America, AFL-CIO, CLC All Rights Reserved | Site Map | Privacy Policy. The lump sum amount, if not invested, will hold me for 13 yrs. Health & Safety Fact Sheets ; Legislation & Politics ; News & Events web design and development by new target, inc. 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. %PDF-1.4 % Careers at CWA. While a pension annuity offers a fixed monthly income, a. Synopsis of Material Modifications Alcatel-Lucent Retirement . 40 0 obj <>stream 0000022178 00000 n 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.
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