(What you might be thinking is that an IRA is less secure from creditors than a pension payout, and that would be correct.) Case of the Week: Alcatel-Lucent's Lump-Sum Offer I need to continue to withdraw money from my pension to live. Alcatel-Lucent to expand lump-sum offer to 32,000 more participants They could do that by purchasing annuities through an insurance company. 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. Tenth Floor Jobs, Health Care & Retirement Security . To: Formerly Represented Retirees of Alcatel-Lucent, Subject: Questions Regarding the Alcatel-Lucent Pension Lump Sum Buyout. The premium amount will still be based on what your current monthly pension amount is today. !J,3pNM,A|f5\mCl]) Pv&hhy 6u!2|)z9F_!lE^wxDaOo8^ %SE91q45),lEQN8:O
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The only caveats with this purchase of an immediate annuityare that if you die in a year or two, the insurance company keeps the remaining balance in the annuity account, and the check is a fixed amount that will not go as far if we have an inflation problem. 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. In fact Alcatel-Lucent was a foreign company and they could not take our pension funds. Two announcements have been made this year by Alcatel-Lucent and many of you might think they are connected. The lump-sum window runs from July 20 through September 25 and is completely voluntary.
My son in Corby, your life and leadership have been an inspiration to us all. She writes a weekly personal finance column syndicated in major newspapers by Tribune Content Agency. Workers' Rights Button submenu. 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. Alcatel-Lucent Pension Lump Sum Buyout | Communications Workers of One more point, just because our pension are protected now, we should not assume it will always be this way. This means that there are specific guidelines that must be followed under federal law. hbbd```b``z
"kd(d? PDF Annual Funding Notice Alcatel-Lucent Retirement Income Plan More on Alcatel-Lucent retiree and pension issues and the acquisition by Nokia. Because this offer was already approved and in the works it is NOT impacted by the ruling. What asset class is best for corporate plans' growth investments when using LDI? Your guidance is very much appreciated. sw
The attached information (cover letterprogram announcementFTE Guide) will be mailed by Alcatel-Lucent to eligible Plan participants beginning tomorrow, Friday, June 26, 2015. You have until September to decide and you should use the time to consult with someone who can review your individual situation. 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 In fact, at this years CWA T&T Leadership conference, our Research Department conducted a workshop on trends in Pension de-risking and bargaining. A6) The new annuity is a recalculation, for certain individuals, of the old calculations and is still administered by the pension plan. The Program is not being offered to everyone. you the lump-sum payment. 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. When to Accept a Buyout | Kiplinger 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 Pension Lump Sum Buyout | Communications Workers of 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.) Therefore, the company cannot just take money from the pension plan and use it for other things. %PDF-1.7
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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. 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. To search specifically for more than one word, put the search term in quotation marks. Thank y. Terry Says: Well, first of all, you have one fact wrong. 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. 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. More on Alcatel-Lucent Retiree and Pension Issues and the acquisition Leadership. 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. You may also contact the Alcatel-Lucent Retiree Lump Sum Window Benefits Center at (866) 617-7164. xoH-Ge/+Uj%_lQ8B\R,Nk;Od.''M[fy%'mNd/i(-*i_EvS4H.fx3Vpe 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. %%EOF
The CWA actuaries will review them to be sure that how they are being calculated is correct. xuSn0>DBH I$}C.SwB#s_u_0Bt
lV:~D[S84eF}dKq_ ={K~922&1BOz:`. 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. CWA is not in the position to interpret the companys offer and does not give out financial advice. Sign up and get the best of News delivered straight to your email inbox, free of charge. 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. Former employee, ATT/Lucent/Alcatel-Lucent is offering a lump sum buyout of our pensions. endstream
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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). hb```\B cbM((-fu``
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Types of Pension Payouts: Lump Sum vs. Monthly - SmartAsset 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.) 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. 0000009608 00000 n
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old, single, working fulltime, and in great health (knock on wood). Over the course of the last year the IRS . hkkG@$fg.e5$-ZRY+u}3+)Jb5j?Bs33g0.lDEPO"$LRBQB{L2BgB@GyNyU/^mDJ$.nyw'(FyY_1JNb+vFcq+3r,k5>k9]TF5Fr
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zv# Should You Take Pension Payments or a Lump Sum? A How-To Guide %%EOF
And it's true that one dollar in 1990 purchasing power requires $2.73 today. 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. Alcatel-Lucent Pension Lump Sum Buyout - Communications Workers of America Some former employees might also have the opportunity to change their current annuity option to a different annuity form. for subscribing, you are all set for your money saving tips. A recent call with a financial advisor in California is representative of a common question related to pension de-risking and lump sums. Companies that are offering lump-sum pension buyouts - Pension Rights Figuring this out is very simple. 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 search for a combination of terms, use quotations and the & symbol. In fact these two announcements are not connected. PDF Summary of Material Modifications Alcatel-Lucent Retirement Income Plan old, single, working fulltime, and in great health (knock on wood). 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 . 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. endstream
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Rob Kozlowski writes for Pensions & Investments, a sister publication of Business Insurance. In Column D, at your life. Alcatel-Lucent announced it was being purchased by Nokia. Skip up main content . We have raised the question with Nokia. The materials contained herein are intended for instruction only and are not a substitute for professional advice. Alcatel-Lucent also recommends recipients of the offer consult with their personal financial planner and/or tax advisor before making a decision. Everyones situation is different and unique to them. 569 0 obj
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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. I am 64 yrs. 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. Early this year Alcatel-Lucent announced they were investigating offering a voluntary lump sum buy-out of retiree pensions. 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. The lump-sum window runs from July 20 through September 25 and is completely voluntary. )@,F/3H4(-A
&.}qp@|te\j|Y#|:Op:[JAa9@gTj-@J 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. endstream
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Q7) What happens to my healthcare if I take this lump sum buy out? 0000008051 00000 n
As we get more information, we will publish it on this site. 0000000016 00000 n
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Terry Savage is a nationally recognized expert on personal finance, the economy and the markets. hbbd```b``A$Sd9&@A vX{>
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 (And, you will understand why the company wants to end the pension promise because it was too generous.). 0
Learn more here. 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. a835gQ00]=8gVYROU4CCXghhr'Hcbo2.0k7.8-1pC*A#=W[K!F$R# Last week retirees received the first official notice of the lump sum offering. Any money left over in the fund the company would have to pay a penalty tax on. A2) This offer is strictly voluntary. Bottom Line: Rising rates reduce 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. xref
i receive a pension from alcatel-lucent. 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). I have many 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 Retiree Lump Sum Window Benefits Center at (866) 617-7164. Everyones situation is different and unique to them. Illinois DOES NOT currently tax IRA withdrawals. Privacy PolicyTerms of UseCopyright. One of them is offering lump sum buy-outs. I have many questions. 0000007454 00000 n
New York, NY 10017-4036, Chicago Office 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. Alcatel-Lucent Old Scheme, London, completed a 100 million ($123.7 million) buy-in with Boarding Insurance Core. A1) Alcatel-Lucent is making available financial and tax education services through Deloitte, an objective, third party organization, at no cost to you. 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 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. You can have automatic monthly withdrawals, or take money out at any time. 0000014974 00000 n
Approximately 75,000 eligible former employees, surviving beneficiaries and alternate payees of Alcatel-Lucent have begun receiving formal lump-sum window notices. Some eligible former employees also had the opportunity to change their existing annuity option to a different annuity option. What You Can Do on the YBR Website If you are now receiving benefits: View your payment confirmations and history; 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 If you are not familiar with these principles, here are some quick tips. PDF Lucent Technologies Inc. Pension Plan - BenefitAnswers Plus Following are the questions, with the answers, that we have received to date. Can the company terminate the pension plan? If you choose to do nothing, your current monthly pension payments will continue. This offer, called the Alcatel-Lucent Retiree Lump-Sum Window Program, formally began on July 20, 2015 and ended on September 25, 2015. Advisor action items: Talk the your Alcatel-Lucent clients who may be affected. 0000022178 00000 n
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In addition, Nokia will most probably create a Nokia (USA) subsidiary which would be completely subject to US laws. Pros and Cons of Lump Sum Pension Payouts. 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. 2023 Communications Workers of America, AFL-CIO, CLC All Rights Reserved | Site Map | Privacy Policy. Today, the pension plan is covered by ERISA and is protected by the Pension Benefit Guaranty Corporation (PBGC). Q2) Do I have to take this lump sum buyout offer? 0000011786 00000 n
"It is an excuse to put money into their underfunded plan . trailer
i received an offer for a lump sum payout based on the incorrect monthly pension. Two announcements have been made this year by Alcatel-Lucent and many of you might think they are connected.