hmk0"tzc7hh:(}&5se(|EV i"0W-kb@@.P|,rQfd\e.9thw)SV"\N2,]Ew9gmP?e? Alcatel-Lucent Retiree Lump Sum Window Benefits Center at (866) 617-7164. 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. New York, NY 10017-4036, Chicago Office Traditionally, when interest rates rise by 1% the amount in an Lucent employee's lump-sum will drop by 8 - 12%. 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. XWyTfnzp@EA0DEqD" 0000017395 00000 n web design and development by new target, inc. 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. Sign up and get the best of News delivered straight to your email inbox, free of charge. hbbd```b``A$Sd9&@A vX{> You point out that the pension trust is overfunded, and inflation has taken its toll, particularly on long-time retirees. 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. This means that there are specific guidelines that must be followed under federal law. You have until September to decide and you should use the time to consult with someone who can review your individual situation. 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. r?Yw-g{A8se? Jx^m!xDC8p:PI((`![G EkrQXADX IF the company decided to terminate the plan they would have to do it under government guidelines. Bottom Line: Rising rates reduce lump sums. 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. (And, you will understand why the company wants to end the pension promise because it was too generous.). Some eligible former employees also had the opportunity to change their existing annuity option to a different annuity option. Recipients have the option to do nothing and will continue to receive their current monthly annuity payments. 0000002392 00000 n In fact these two announcements are not connected. 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. That is not necessarily true. BIs Article search uses Boolean search capabilities. If I roll it over, say into an IRA, then the income becomes taxable. %PDF-1.4 % 0000015986 00000 n It doesnt prevent a company from declaring bankruptcy. 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. My son in Corby, your life and leadership have been an inspiration to us all. 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# (What you might be thinking is that an IRA is less secure from creditors than a pension payout, and that would be correct.) Your guidance is very much appreciated. 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. More on Alcatel-Lucent retiree and pension issues and the acquisition by Nokia. Can the company terminate the pension plan? Legislation and Politics. Please review the attached documents for complete information regarding this Program. A schedule of those sessions is in the Financial and Tax Education Guide booklet provided in the program announcement package. 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. View all Financial Planning / Retirement questions. %%EOF 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. one-time, opportunity to convert their current monthly pension payment to a lump-sum payment (or, for some individuals, to change their pension payment option). You will receive your first bill in mid-November for your December coverage. 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. In terms of the Nokia merger -- There is a fear since Nokia is a foreign company our pensions would no longer be protected. endstream endobj 272 0 obj <>stream 544 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.) old, single, working fulltime, and in great health (knock on wood). 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. xoH-Ge/+Uj%_lQ8B\R,Nk;Od.''M[fy%'mNd/i(-*i_EvS4H.fx3Vpe Skip up main content . While a pension annuity offers a fixed monthly income, a. Even if they are, that does not mean you should take it. I'd point out however that not all wobble stools are bad. Early this year Alcatel-Lucent announced they were investigating offering a voluntary lump sum buy-out of retiree pensions. for subscribing, you are all set for your money saving tips. 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. 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. endstream endobj startxref 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. Q5) Will the new IRS ruling on pensions affect our Lucent retirees taking this lump sum? In fact these two announcements are not connected. 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). You have until September to decide and you should use the time to consult with someone who can review your individual situation. About Change submenu. In terms of the Nokia merger There is a fear since Nokia is a foreign company our pensions would no longer be protected. A2) This offer is strictly voluntary. I need to continue to withdraw money from my pension to live. 8bOM4JDEEE3`%y1OSwR;jysrU ;(SRg3,}tc qR{SeL1E9im|6';Ye]DHH. If you dont have a choice, but must take the lump sum offered, then I suggest rolling it to an IRA as described above. 0 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. One more point, just because our pension are protected now, we should not assume it will always be this way. The attached information (cover letterprogram announcementFTE Guide) will be mailed by Alcatel-Lucent to eligible Plan participants beginning tomorrow, Friday, June 26, 2015. Thank y. Terry Says: Well, first of all, you have one fact wrong. 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. Plan assets are protected from being used for purposes other than providing benefits (or reasonable administrative expenses). 0000002597 00000 n Examples of those protections are: The Company may not retroactively reduce those benefits, once they are vested. The attachment labeled Lump Sum Program Announcement identifies who is and is not eligible. Again, this is an extremely important decision and it requires careful consideration. Suite 3200 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. If you choose to do nothing, your current monthly pension payments will continue. Main Office Case of the Week: Do Roth Recharacterizations Still Exist? at the current rate of yearly allocations given by the employer. Alcatel-Lucent announced it was being purchased by Nokia. 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). Holy cow, Nevin, you wrote a white paper! 0000001040 00000 n Q7) What happens to my healthcare if I take this lump sum buy out? One more point, just because our pension are protected now, we should not assume it will always be this way. 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. 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"). Questions Regarding the Alcatel-Lucent Pension Lump Sum Buyout. For example, workers compensation. 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. I am 64 yrs. Synopsis of Material Modifications Alcatel-Lucent Retirement . What You Can Do on the YBR Website If you are now receiving benefits: View your payment confirmations and history; Terry Savage is a nationally recognized expert on personal finance, the economy and the markets. TAJ6LuR.u(NdLN_Ht)txF%K.)/|q1oO|uB+t{?ZQWH^ hsPZ=+,wz/ What about the Pension Protection Act? If you are eligible for a lump sum, you may be able to get a significantly . The advisor asked: What are the details around Alcatel-Lucents lump sum offer to former employees?. Biggest Lucent Pension Drop in a Generation. 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. PBGC proposes pension plan risk-transfer disclosure requirement, Ford pension plan funding holds steady in 2014, COPYRIGHT 2023 BUSINESS INSURANCE HOLDINGS. 2015 Columbia Management Investment Advisers, LLC. That new car or luxurious vacation may not . 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. That will get you a guaranteed stream of (fully taxable) income for as long as you live. 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 All of this is costly to the company. sure enough, the lack of stability does bring a certain focus - which, to your point, can be Great article. 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. Leadership. 268 0 obj <> endobj This offer, called the Alcatel-Lucent Retiree Lump-Sum Window Program, formally began on July 20, 2015 and ended on September 25, 2015. 0000014070 00000 n A decision by telecom company Alcatel-Lucent to move $3 billion out of a well-funded pension fund for retired workers into a fund for managers has union leaders worried about the long-term stability of the retirees' fund. So, if you are evaluating whether or not to take the lump sum, you should not take the lump just because you are fearful about the Nokia merger. )@,F/3H4(-A &.}qp@|te\j|Y#|:Op:[JAa9@gTj-@J This will limit your search to that combination of words. To do so, however, the employer must prove to a bankruptcy court or to the PBGC . The premium amount will still be based on what your current monthly pension amount is today. You may also contact the Alcatel-Lucent Retiree Lump Sum Window Benefits Center at (866) 617-7164. If I do decide to take it, what are my investment options to continue to withdraw on a monthly or yearly basis? Their answer is that there are no plans for a cost-of-living raise. Despite a July 9 announcement that the IRS intends to eliminate lump-sum windows for retirees already receiving annuity payments, the Alcatel-Lucent lump-sum window is allowed to proceed under a special prenotice grandfather clause for programs announced prior to July 9. 0000012893 00000 n After all, getting a huge influx of cash into your account upon retirement would make anyone jump for joy. Alcatel-Lucent to expand lump-sum offer to 32,000 more participants Alcatel-Lucent completes buy-in for U.K. pension fund, eyes full buyout Alcatel-Lucent enters into second buy-in for U.K . a835gQ00]=8gVYROU4CCXghhr'Hcbo2.0k7.8-1pC*A#=W[K!F$R# 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. i receive a pension from alcatel-lucent. Just go to www.immediateannuities.com, and insert your age, gender, state, and the lump sum amount you have to invest. 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. Hello Terry, 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 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. In fact Alcatel-Lucent was a foreign company and they could not take our pension funds. They could do that by purchasing annuities through an insurance company. endstream endobj 273 0 obj <>stream 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.) old, single, working fulltime, and in great health (knock on wood). 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. 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). Pension Plans offer lump sums periodically, but typically change once a year. 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. History. %PDF-1.7 % Privacy PolicyTerms of UseCopyright. A lump sum pension distribution offers the flexibility of being able to spend or invest your retirement savings any way you see fit. 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. 0000015024 00000 n The materials contained herein are intended for instruction only and are not a substitute for professional advice. The lump-sum window runs from July 20 through September 25 and is completely voluntary. 0000000016 00000 n trailer The Pension Protection Act helps to ensure the plan is appropriately funded. We have raised the question with Nokia. 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. 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. 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). %%EOF Examples of those protections are: The Company may not retroactively reduce those benefits, once they are vested. You DO NOT have to accept this offer. In fact these two announcements are not connected. Former employee, ATT/Lucent/Alcatel-Lucent is offering a lump sum buyout of our pensions. I have many questions. 0000001958 00000 n 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 *4w| sX8#.i_96"he@;(e[*'m'-Ksbzgh k@0n`76Cdi} fK0/h. {j under the Plan to a one-time, lump-sum payment. i received an offer for a lump sum payout based on the incorrect monthly pension. A2) This offer is strictly voluntary. |@5=Ni!_DKZ89_<9Fa0MU)C2:)}yH0u g>.]uj&G([mRgm=G-MA5@au%l :vz,!MM@\Torx9 d:'FK]M2| To read about CWA Members, Leadership or Industries, visit ourAbout page. Currently the LTPP is funded at approximately 149%. tS 0000007666 00000 n 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. I have to decide by Sept. 11, 2015. 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. Everyones situation is different and unique to them. \?Q8za"mb CMz>GWcgeXSoGcg z!#}'`yOx"(:otxJ+;`Oc56d jnSf;Tm;H8b`i@5@(^hq;X8@d]EXr|w^>|K3Y6g9skZy&jteg}aBM\ju.Ks8XpOTi#Dl8gCx. More on Alcatel-Lucent retiree and pension issues and the acquisition by Nokia. Workers' Rights Button submenu. 0000000776 00000 n Rob Kozlowski writes for Pensions & Investments, a sister publication of Business Insurance. 569 0 obj <>stream Choose your news we will deliver. 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. But keep in mind that a lump sum pension payout makes it easier to overspend in retirement. Former employee, ATT/Lucent/Alcatel-Lucent is offering a lump sum buyout of our pensions. If you are not familiar with these principles, here are some quick tips. 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. A3) The language on page 10 is standard language. Health & Safety Fact Sheets ; Legislation & Politics ; News & Events `lsIf8 y[e?f-IE2.H54&%6h2SQ HUE{RV3@@ I am 64 yrs. A lump sum payout is the more exciting option of the two. Last week retirees received the first official notice of the lump sum offering. 0000014929 00000 n 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. xuSn0>DBH I$}C.SwB#s_u_0Bt lV:~D[S84eF}dKq_ ={K~922&1BOz:`.
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