0000009608 00000 n The lump-sum window runs from July 20 through September 25 and is completely voluntary. 0000002597 00000 n One more point, just because our pension are protected now, we should not assume it will always be this way. Suite 3200 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. 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). Q5) Will the new IRS ruling on pensions affect our Lucent retirees taking this lump sum? In fact these two announcements are not connected. To search specifically for more than one word, put the search term in quotation marks. 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 CWA is not in the position to interpret the companys offer and does not give out financial advice. Over the course of the last year the IRS . In terms of the Nokia merger There is a fear since Nokia is a foreign company our pensions would no longer be protected. old, single, working fulltime, and in great health (knock on wood). In fact, at this years CWA T&T Leadership conference, our Research Department conducted a workshop on trends in Pension de-risking and bargaining. 0 `lsIf8 y[e?f-IE2.H54&%6h2SQ HUE{RV3@@ 0000014070 00000 n 0000014974 00000 n 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. Early this year Alcatel-Lucent announced they were investigating offering a voluntary lump sum buy-out of retiree pensions. You can have automatic monthly withdrawals, or take money out at any time. What asset class is best for corporate plans' growth investments when using LDI? trailer 130 E. Randolph St. 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. 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. For example, hurricane & loss. To read about CWA Members, Leadership or Industries, visit ourAbout page. xb```b``d`e`y |,@Q9F90*oZWcS;ik5H0frrx@,V"a"C8jqP 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. L Ne`8H3*00\?0 Z* My son in Corby, your life and leadership have been an inspiration to us all. I am 64 yrs. 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. Some former employees might also have the opportunity to change their current annuity option to a different annuity form. Two announcements have been made this year by Alcatel-Lucent and many of you might think they are connected. 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.) *4w| sX8#.i_96"he@;(e[*'m'-Ksbzgh k@0n`76Cdi} fK0/h. {j 0000002392 00000 n 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. If the plan is not fully-funded, the employer may apply for a distress termination if the employer is in financial distress. Legislation and Politics. for subscribing, you are all set for your money saving tips. sure enough, the lack of stability does bring a certain focus - which, to your point, can be Great article. hbbd```b``z "kd(d? Approximately 75,000 eligible former employees, surviving beneficiaries and alternate payees of Alcatel-Lucent have begun receiving formal lump-sum window notices. 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. Former employee, ATT/Lucent/Alcatel-Lucent is offering a lump sum buyout of our pensions. I have many questions. 0000015024 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. Synopsis of Material Modifications Alcatel-Lucent Retirement . You have until September to decide and you should use the time to consult with someone who can review your individual situation. 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. 17 0 obj <> endobj Used with permission. 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. BIs Article search uses Boolean search capabilities. 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. 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 Program Window is only in effect beginning July 20, 2015 and ends at 11:59 p.m. (EDT) on September 25, 2015. you the lump-sum payment. 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. Careers at CWA. A1) Alcatel-Lucent is making available financial and tax education services through Deloitte, an objective, third party organization, at no cost to you. A6) The new annuity is a recalculation, for certain individuals, of the old calculations and is still administered by the pension plan. 0000012893 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). If you roll to Fidelity, Vanguard, or T. Rowe Price they will handle both the investment and withdrawal planning for you. Main Office Alcatel-Lucent also recommends recipients of the offer consult with their personal financial planner and/or tax advisor before making a decision. That new car or luxurious vacation may not . PBGC proposes pension plan risk-transfer disclosure requirement, Ford pension plan funding holds steady in 2014, COPYRIGHT 2023 BUSINESS INSURANCE HOLDINGS. As of Dec. 31, 2013, the U.S. pension funds had $30.1 billion in assets and $26.2 billion in projected benefit obligations, for a funding ratio of 115%, according to the companys most recent 20-F filing. In addition, Nokia will most probably create a Nokia (USA) subsidiary which would be completely subject to US laws. r?Yw-g{A8se? Jx^m!xDC8p:PI((`![G EkrQXADX "It is an excuse to put money into their underfunded plan . This means that there are specific guidelines that must be followed under federal law. In fact these two announcements are not connected. hbbd```b``A$Sd9&@A vX{> To consistently deliver news, research and analysis to the executives who manage the flow of funds in the institutional investment market. Menu burger Close thin Facebook Twitter Google plus Linked in Reddit Email arrow-right-sm arrow-right Loading Home Buying Calculators 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). 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. Your guidance is very much appreciated. 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. 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. 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. While a pension annuity offers a fixed monthly income, a. I am 64 yrs. Workers' Rights Button submenu. I have to decide by Sept. 11, 2015. If I roll it over, say into an IRA, then the income becomes taxable. Currently the LTPP is funded at approximately 149%. 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. 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. 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). Q3) Page 10 of the Alcatel-Lucent Retiree Lump Sum Window booklet says the company has rights to terminate either plan, etc. You DO NOT have to accept this offer. Holy cow, Nevin, you wrote a white paper! 40 0 obj <>stream 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. Advisor action items: Talk the your Alcatel-Lucent clients who may be affected. 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. More on Alcatel-Lucent retiree and pension issues and the acquisition by Nokia. hmk0"tzc7hh:(}&5se(|EV i"0W-kb@@.P|,rQfd\e.9thw)SV"\N2,]Ew9gmP?e? Plan assets are protected from being used for purposes other than providing benefits (or reasonable administrative expenses). That is not necessarily true. The attachment labeled Lump Sum Program Announcement identifies who is and is not eligible. 0000022178 00000 n 0000001515 00000 n The lump sum amount, if not invested, will hold me for 13 yrs. The advisor asked: What are the details around Alcatel-Lucents lump sum offer to former employees?. About 55,000 If I do decide to take it, what are my investment options to continue to withdraw on a monthly or yearly basis? A recent call with a financial advisor in California is representative of a common question related to pension de-risking and lump sums. In fact Alcatel-Lucent was a foreign company and they could not take our pension funds. Can the company terminate the pension plan? Case of the Week: Do Roth Recharacterizations Still Exist? 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 Because this offer was already approved and in the works it is NOT impacted by the ruling. One more point, just because our pension are protected now, we should not assume it will always be this way. Today, the pension plan is covered by ERISA and is protected by the Pension Benefit Guaranty Corporation (PBGC). randolph high school calendar, kegan anthony kline father,
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