In fact Alcatel-Lucent was a foreign company and they could not take our pension funds. While a pension annuity offers a fixed monthly income, a. For media inquiries, call CWA Communications at 202-434-1168 or [email protected]. Former employee, ATT/Lucent/Alcatel-Lucent is offering a lump sum buyout of our pensions. To read about CWA Members, Leadership or Industries, visit ourAbout page. they have known this for over 30 days and i am not making any headway with getting it corrected. In fact these two announcements are not connected. This offer, called the Alcatel-Lucent Retiree Lump-Sum Window Program, formally began on July 20, 2015 and ended on September 25, 2015. That new car or luxurious vacation may not . If you choose to do nothing, your current monthly pension payments will continue. 0000015024 00000 n 0000002392 00000 n Call 1-888-232-4111 and select "Retirement and Investments", then select "Pension". 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 I'd point out however that not all wobble stools are bad. xoH-Ge/+Uj%_lQ8B\R,Nk;Od.''M[fy%'mNd/i(-*i_EvS4H.fx3Vpe hmk0"tzc7hh:(}&5se(|EV i"0W-kb@@.P|,rQfd\e.9thw)SV"\N2,]Ew9gmP?e? Hello Terry, Early this year Alcatel-Lucent announced they were investigating offering a voluntary lump sum buy-out of retiree pensions. 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. That is not necessarily true. This is an extremely important decision and it requires careful consideration. To consistently deliver news, research and analysis to the executives who manage the flow of funds in the institutional investment market. 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. Skip up main content . The Program Window is only in effect beginning July 20, 2015 and ends at 11:59 p.m. (EDT) on September 25, 2015. The Columbus Dispatch Tuesday February 16, 2016 5:00 AM. If I roll it over, say into an IRA, then the income becomes taxable. Last week retirees received the first official notice of the lump sum offering. Last week retirees received the first official notice of the lump sum offering. Recipients have the option to do nothing and will continue to receive their current monthly annuity payments. I am 64 yrs. The National Association of Plan Advisors is a non-profit professional society. Alcatel-Lucent announced it was being purchased by Nokia. Figuring this out is very simple. Rob Kozlowski writes for Pensions & Investments, a sister publication of Business Insurance. 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"). 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. The CWA actuaries will review them to be sure that how they are being calculated is correct. A recent call with a financial advisor in California is representative of a common question related to pension de-risking and lump sums. 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. ~n]A9iRD wkvU@HB8E8JKkt>:O) You will receive your first bill in mid-November for your December coverage. 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 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). For example, hurricane & loss. 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. sw %%EOF After all, getting a huge influx of cash into your account upon retirement would make anyone jump for joy. (And, you will understand why the company wants to end the pension promise because it was too generous.). 0000002947 00000 n For media inquiries, call CWA Communications at 202-434-1168 or [email protected]. A1) Alcatel-Lucent is making available financial and tax education services through Deloitte, an objective, third party organization, at no cost to you. 40 0 obj <>stream Case of the Week: Do Roth Recharacterizations Still Exist? 0000001958 00000 n Alcatel-Lucent announced it was being purchased by Nokia. L Ne`8H3*00\?0 Z* The advisor asked: What are the details around Alcatel-Lucents lump sum offer to former employees?. %PDF-1.5 % endstream endobj 272 0 obj <>stream Jobs, Health Care & Retirement Security . 268 0 obj <> endobj Advisor action items: Talk the your Alcatel-Lucent clients who may be affected. Copyright 2023by NAPA, Compliance Administrator (TPA) Evaluation. 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. 0000017395 00000 n 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. Two announcements have been made this year by Alcatel-Lucent and many of you might think they are connected. 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. What You Can Do on the YBR Website If you are now receiving benefits: View your payment confirmations and history; Q6) What company is the new annuity going to be with? 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 you roll to Fidelity, Vanguard, or T. Rowe Price they will handle both the investment and withdrawal planning for you. Early this year Alcatel-Lucent announced they were investigating offering a voluntary lump sum buy-out of retiree pensions. One more point, just because our pension are protected now, we should not assume it will always be this way. Alcatel-Lucent Old Scheme, London, completed a 100 million ($123.7 million) buy-in with Boarding Insurance Core. 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. %%EOF i receive a pension from alcatel-lucent. 685 Third Avenue The lump-sum window runs from July 20 through September 25 and is completely voluntary. 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 CWA actuaries will review them to be sure that how they are being calculated is correct. 0000015986 00000 n 17 24 endstream endobj 545 0 obj <>/Metadata 74 0 R/Pages 542 0 R/StructTreeRoot 124 0 R/Type/Catalog/ViewerPreferences 554 0 R>> endobj 546 0 obj <>/MediaBox[0 0 612 792]/Parent 542 0 R/Resources<>/Font<>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI]/XObject<>>>/Rotate 0/StructParents 0/Tabs/S/Type/Page>> endobj 547 0 obj <>stream To search for a combination of terms, use quotations and the & symbol. 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. Examples of those protections are: The Company may not retroactively reduce those benefits, once they are vested. Thank y. Terry Says: Well, first of all, you have one fact wrong. More on Alcatel-Lucent retiree and pension issues and the acquisition by Nokia. To do so, however, the employer must prove to a bankruptcy court or to the PBGC . 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. Plan assets are protected from being used for purposes other than providing benefits (or reasonable administrative expenses). 3QxbOJZL3 i`/ 4(yKH.WT=\}LN8V^*~& 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. 0000000016 00000 n All of this is costly to the company. xuSn0>DBH I$}C.SwB#s_u_0Bt lV:~D[S84eF}dKq_ ={K~922&1BOz:`. About Change submenu. %PDF-1.7 % You can make some investments that are likely to generate growth and income to support your retirement needs. 0000001121 00000 n You will see offerings frm major insurance companies giving you a monthly payout. Health & Safety Fact Sheets ; Legislation & Politics ; News & Events 0000014929 00000 n Choose your news we will deliver. 0000010715 00000 n Pros and Cons of Lump Sum Pension Payouts. Columbia Threadneedle Investments (Columbia Threadneedle) is the global brand name of the Columbia and Threadneedle group of companies. 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. 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. As we get more information, we will publish it on this site. Just go to www.immediateannuities.com, and insert your age, gender, state, and the lump sum amount you have to invest. 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. A6) The new annuity is a recalculation, for certain individuals, of the old calculations and is still administered by the pension plan. Early this year Alcatel-Lucent announced they were investigating offering a voluntary lump sum buy-out of retiree pensions. So assuming that you are not going to be sued, this is strictly a financial planning question. 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. Tenth Floor 8bOM4JDEEE3`%y1OSwR;jysrU ;(SRg3,}tc qR{SeL1E9im|6';Ye]DHH. 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. We have raised the question with Nokia. Vm}O%TimaUMG60)f 6(jvR NEZ;[R!m))62Kr)7;yPedf`zms hbbd```b``A$Sd9&@A vX{> You can have automatic monthly withdrawals, or take money out at any time. [|c-Ur7fg Jlh>{.OQQ ,FuZr"\>`k_,&^[\z^ :;@. @V6l "{1 The lump sum amount, if not invested, will hold me for 13 yrs. 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. That is not necessarily true. Even if they are, that does not mean you should take it. You may also contact the Nokia Benefits Resource Center. 0 Privacy PolicyTerms of UseCopyright. Currently IL does not charge on pension income? 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 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. 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 I need to continue to withdraw money from my pension to live. Suite 3200 0000007666 00000 n under the Plan to a one-time, lump-sum payment. r?Yw-g{A8se? Jx^m!xDC8p:PI((`![G EkrQXADX One of them is offering lump sum buy-outs. 0000009608 00000 n Alcatel-Lucent also recommends recipients of the offer consult with their personal financial planner and/or taxes advisor before making a decision. 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 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. 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. 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. 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. 130 E. Randolph St. The premium amount will still be based on what your current monthly pension amount is today. The materials contained herein are intended for instruction only and are not a substitute for professional advice. One of them is offering lump sum buy-outs. at the current rate of yearly allocations given by the employer. 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). 17 0 obj <> endobj Can the company terminate the pension plan? About 55,000 Some eligible former employees also had the opportunity to change their existing annuity option to a different annuity option. \?Q8za"mb CMz>GWcgeXSoGcg z!#}'`yOx"(:otxJ+;`Oc56d jnSf;Tm;H8b`i@5@(^hq;X8@d]EXr|w^>|K3Y6g9skZy&jteg}aBM\ju.Ks8XpOTi#Dl8gCx. 0000000776 00000 n Get Email Updates; Receive Text Alerts; Detect Your Local; Search; Services Laborer of Worldwide . One more point, just because our pension are protected now, we should not assume it will always be this way. 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. 0000007454 00000 n The attached information (cover letterprogram announcementFTE Guide) will be mailed by Alcatel-Lucent to eligible Plan participants beginning tomorrow, Friday, June 26, 2015. old, single, working fulltime, and in great health (knock on wood). Your guidance is very much appreciated. It is a sizable amount of money. To read about CWA Members, Leadership or Industries, visit ourAbout page. Alcatel-Lucent Retiree Lump Sum Window Benefits Center at (866) 617-7164. 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. XWyTfnzp@EA0DEqD" Alcatel-Lucent announced it was being purchased by Nokia. If you are eligible for a lump sum, you may be able to get a significantly . You DO NOT have to accept this offer. you the lump-sum payment. More on Alcatel-Lucent retiree and pension issues and the acquisition by Nokia. Today, the pension plan is covered by ERISA and is protected by the Pension Benefit Guaranty Corporation (PBGC). 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. endstream endobj 548 0 obj <>stream As we get more information, we will publish it on this site. <]>> In fact these two announcements are not connected. In fact these two announcements are not connected. In terms of the Nokia merger -- There is a fear since Nokia is a foreign company our pensions would no longer be protected. Social Security Solvency: Is it Really That Bad? 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. BIs Article search uses Boolean search capabilities. Following are the questions, with the answers, that we have received to date. 2015 Columbia Management Investment Advisers, LLC. 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.) Workers' Rights Button submenu. If I do decide to take it, what are my investment options to continue to withdraw on a monthly or yearly basis? *4w| sX8#.i_96"he@;(e[*'m'-Ksbzgh k@0n`76Cdi} fK0/h. {j 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 . 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. endstream endobj startxref If you dont have a choice, but must take the lump sum offered, then I suggest rolling it to an IRA as described above. 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. 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. 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.) You may also contact the Alcatel-Lucent Retiree Lump Sum Window Benefits Center at (866) 617-7164. HWmkF}J\l|MiJ(R~H'g Do I have to take this lump sum buyout offer? J m^?bSL&MM>^S!OYuFG]2_w*'~vmi"chV6{8E&`(72jje&}\MlKM+TLigQC42BIj4^C};)k"C+"?j^SDE5[k]83/pivCNSa+| $ 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. 297 0 obj <>stream hbbd```b``z "kd(d? Leadership. 2023 Communications Workers of America, AFL-CIO, CLC All Rights Reserved | Site Map | Privacy Policy. To search specifically for more than one word, put the search term in quotation marks. Recipients have the option to do nothing and will continue to receive their current monthly annuity payments. 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). The Pension Protection Act helps to ensure the plan is appropriately funded. A schedule of those sessions is in the Financial and Tax Education Guide booklet provided in the program announcement package. 0000002597 00000 n Q1) Where can I get more information about this offer? Q2) Do I have to take this lump sum buyout offer? 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 . 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. In fact Alcatel-Lucent was a foreign company and they could not take our pension funds. Over the course of the last year the IRS . 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 .
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