%%EOF under the Plan to a one-time, lump-sum payment. 0000001958 00000 n In fact, at this years CWA T&T Leadership conference, our Research Department conducted a workshop on trends in Pension de-risking and bargaining. The premium amount will still be based on what your current monthly pension amount is today. For media inquiries, call CWA Communications at 202-434-1168 or emailnews@cwa-union.org. Just go to www.immediateannuities.com, and insert your age, gender, state, and the lump sum amount you have to invest. HWmkF}J\l|MiJ(R~H'g The language on page 10 is standard language. More on Alcatel-Lucent retiree and pension issues and the acquisition by Nokia. 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. endstream endobj startxref they have known this for over 30 days and i am not making any headway with getting it corrected. 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. 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 . 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. NRLN Lucent/Nokia Retirees Chapter The CWA actuaries will review them to be sure that how they are being calculated is correct. Privacy PolicyTerms of UseCopyright. 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. 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. Lump-Sum vs. Regular Pension Payments: What's the Difference? endstream endobj 548 0 obj <>stream For media inquiries, call CWA Communications at 202-434-1168 or emailnews@cwa-union.org. 0 Annuity experiences with Lump Sum - The Lucent Retirees Message Board 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. This offer, called the Alcatel-Lucent Retiree Lump-Sum Window Program, formally began on July 20, 2015 and ended on September 25, 2015. sw 297 0 obj <>stream 0000014974 00000 n Nokia to merge its 401(k) plan into Alcatel-Lucent's offering Case of the Week: Alcatel-Lucent's Lump-Sum Offer 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. Therefore, the company cannot just take money from the pension plan and use it for other things. If you choose to do nothing, your current monthly pension payments will continue. The National Association of Plan Advisors is a non-profit professional society. Alcatel-Lucent Old Scheme, London, completed a 100 million ($123.7 million) buy-in with Boarding Insurance Core. You DO NOT have to accept this offer. Social Security Solvency: Is it Really That Bad? The Program is not being offered to everyone. L Ne`8H3*00\?0 Z* you the lump-sum payment. Kh#3w3g@|9%lQ8zRO 0vmb|@f)4|b;'.o04}* >~A=(zZm/y]?E}r*e{,5i03=H9`}p 0cg atZ2$4^a1'J>gfr~0K2]3kQ^E\V9aUYp0NjUDFL1`8K^{q "]A Aa>&.cHeWW1B1Q`gT$a8XFm. To read about CWA Members, Leadership or Industries, visit ourAbout page. Vm}O%TimaUMG60)f 6(jvR NEZ;[R!m))62Kr)7;yPedf`zms 284 0 obj <>/Filter/FlateDecode/ID[<401FD2CD3C4E2E4F956EAD5ECE542FCA><5B6DADCB6C7B5D49B41567324319F557>]/Index[268 30]/Info 267 0 R/Length 90/Prev 182067/Root 269 0 R/Size 298/Type/XRef/W[1 3 1]>>stream And it's true that one dollar in 1990 purchasing power requires $2.73 today. To read about CWA Members, Leadership or Industries, visit ourAbout page. `lsIf8 y[e?f-IE2.H54&%6h2SQ HUE{RV3@@ <]>> The Columbus Dispatch Tuesday February 16, 2016 5:00 AM. It is in the companys self-interest to keep the pension plan healthy because if it is not, they cannot pay for retiree medical from the plan and they have a contract saying they will pay retiree medical through the end of 2019. Traditionally, when interest rates rise by 1% the amount in an Lucent employee's lump-sum will drop by 8 - 12%. a835gQ00]=8gVYROU4CCXghhr'Hcbo2.0k7.8-1pC*A#=W[K!F$R# If I do decide to take it, what are my investment options to continue to withdraw on a monthly or yearly basis? 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. Skip up main content . Or you could wait a few years to buy an. I need to continue to withdraw money from my pension to live. Alcatel-Lucent plans voluntary lump-sum offer in 2015 The lump-sum window runs from July 20 through September 25 and is completely voluntary. 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 A recent call with a financial advisor in California is representative of a common question related to pension de-risking and lump sums. Their answer is that there are no plans for a cost-of-living raise. Sign up to receive Terrys free newsletter!! In terms of the Nokia merger -- There is a fear since Nokia is a foreign company our pensions would no longer be protected. hb```\B cbM((-fu`` x';n\("v%u6~:8:F )T@TH HQAA|D,LG&[lnP%Vif^ %t,e`` %x( Biggest Lucent Pension Drop in a Generation. "9:@$;dIs0&w@qY }*#l8l 0 Types of Pension Payouts: Lump Sum vs. Monthly - SmartAsset hbbd```b``z "kd(d? If the lump sum is not anywhere near enough to generate the same monthly income as your pension, then if given the choice you will want to stick with the pension promise. I need to continue to withdraw money from my pension to live. CWA is not in the position to interpret the companys offer and does not give out financial advice. Q6) What company is the new annuity going to be with? To read about CWA Members, Leadership or Industries, visit ourAbout page. If you are not familiar with these principles, here are some quick tips. 685 Third Avenue hbbd```b``A$Sd9&@A vX{> 0000000776 00000 n Following are the questions, with the answers, that we have received to date. 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. %%EOF About Change submenu. Everyones situation is different and unique to them. The Pension Protection Act helps to ensure the plan is appropriately funded. Plan assets are protected from being used for purposes other than providing benefits (or reasonable administrative expenses). Alcatel-Lucent also recommends recipients of the offer consult with their personal financial planner and/or taxes advisor before making a decision. 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. Q1) Where can I get more information about this offer? xuSn0>DBH I$}C.SwB#s_u_0Bt lV:~D[S84eF}dKq_ ={K~922&1BOz:`. For example, workers compensation. While a pension annuity offers a fixed monthly income, a. After all, getting a huge influx of cash into your account upon retirement would make anyone jump for joy. endstream endobj 273 0 obj <>stream Pros and Cons of Lump Sum Pension Payouts. trailer Alcatel-Lucent to expand lump-sum offer to 32,000 more participants 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). PBGC proposes pension plan risk-transfer disclosure requirement, Ford pension plan funding holds steady in 2014, COPYRIGHT 2023 BUSINESS INSURANCE HOLDINGS. About 55,000 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. In fact Alcatel-Lucent was a foreign company and they could not take our pension funds. In fact these two announcements are not connected. *4w| sX8#.i_96"he@;(e[*'m'-Ksbzgh k@0n`76Cdi} fK0/h. {j [|c-Ur7fg Jlh>{.OQQ ,FuZr"\>`k_,&^[\z^ :;@. @V6l "{1 Jobs, Health Care & Retirement Security . 0000000016 00000 n Questions Regarding the Alcatel-Lucent Pension Lump Sum Buyout. Rob Kozlowski writes for Pensions & Investments, a sister publication of Business Insurance. 544 0 obj <> endobj In fact these two announcements are not connected. PDF Lucent Technologies Inc. Pension Plan - BenefitAnswers Plus If you roll to Fidelity, Vanguard, or T. Rowe Price they will handle both the investment and withdrawal planning for you. Your guidance is very much appreciated. BIs Article search uses Boolean search capabilities. 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 As we get more information, we will publish it on this site. In fact these two announcements are not connected. Main Office TAJ6LuR.u(NdLN_Ht)txF%K.)/|q1oO|uB+t{?ZQWH^ hsPZ=+,wz/ Copyright 2023by NAPA, Compliance Administrator (TPA) Evaluation. 0000002392 00000 n Health & Safety Fact Sheets ; Legislation & Politics ; News & Events %PDF-1.4 % Approximately 75,000 eligible former employees, surviving beneficiaries and alternate payees of Alcatel-Lucent have begun receiving formal lump-sum window notices. 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. What about the Pension Protection Act? Illinois DOES NOT currently tax IRA withdrawals. 0000001515 00000 n 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. We have raised the question with Nokia. 268 0 obj <> endobj The lump sum amount, if not invested, will hold me for 13 yrs. 0000010715 00000 n Last week retirees received the first official notice of the lump sum offering. 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. tS That new car or luxurious vacation may not . Alcatel-Lucent enters into second buy-in for U.K. pension plan THIS PROGRAM IS STRICTLY VOLUNTARY! 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. (And, you will understand why the company wants to end the pension promise because it was too generous.). Eligible former employees are NOT required to make any changes to how or when they receive their Plan benefits. %PDF-1.5 % Careers at CWA. 0000001121 00000 n Because this offer was already approved and in the works it is NOT impacted by the ruling. 130 E. Randolph St. 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. What asset class is best for corporate plans' growth investments when using LDI? 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 ~n]A9iRD wkvU@HB8E8JKkt>:O) This is an extremely important decision and it requires careful consideration. The attached information (cover letterprogram announcementFTE Guide) will be mailed by Alcatel-Lucent to eligible Plan participants beginning tomorrow, Friday, June 26, 2015. Alcatel-Lucent Pension Lump Sum Buyout | Communications Workers of 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. 0000001040 00000 n A1) Alcatel-Lucent is making available financial and tax education services through Deloitte, an objective, third party organization, at no cost to you. 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. Synopsis of Material Modifications Alcatel-Lucent Retirement . For Alcatel-Lucent's U.S. pension plans, the funding policy is to contribute amounts to the . The lump-sum window runs from July 20 through September 25 and is completely voluntary. Bottom Line: Rising rates reduce lump sums. 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. 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. If I roll it over, say into an IRA, then the income becomes taxable. Tenth Floor If the plan is not fully-funded, the employer may apply for a distress termination if the employer is in financial distress. Terry Savage is a nationally recognized expert on personal finance, the economy and the markets. You point out that the pension trust is overfunded, and inflation has taken its toll, particularly on long-time retirees. 569 0 obj <>stream 40 0 obj <>stream 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. 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. IF the company decided to terminate the plan they would have to do it under government guidelines. They could do that by purchasing annuities through an insurance company. 0 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. The attachment labeled Lump Sum Program Announcement identifies who is and is not eligible. It is a sizable amount of money. 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. 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. 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). !J,3pNM,A|f5\mCl]) Pv&hhy 6u!2|)z9F_!lE^wxDaOo8^ %SE91q45),lEQN8:O $o2dhcflYK fgOlK: 2SYu*q"H3;Ydi37t6K^4nb8o?/zYK Suite 3200 Again, this is an extremely important decision and it requires careful consideration. Examples of those protections are: The Company may not retroactively reduce those benefits, once they are vested. You can have automatic monthly withdrawals, or take money out at any time. xoH-Ge/+Uj%_lQ8B\R,Nk;Od.''M[fy%'mNd/i(-*i_EvS4H.fx3Vpe These resources include group sessions, individual sessions and a Financial and Tax Education Tool. Today, the pension plan is covered by ERISA and is protected by the Pension Benefit Guaranty Corporation (PBGC). Menu burger Close thin Facebook Twitter Google plus Linked in Reddit Email arrow-right-sm arrow-right Loading Home Buying Calculators Columbia Threadneedle Investments (Columbia Threadneedle) is the global brand name of the Columbia and Threadneedle group of companies. You DO NOT have to accept this offer. In terms of the Nokia merger There is a fear since Nokia is a foreign company our pensions would no longer be protected. One of them is offering lump sum buy-outs. Holy cow, Nevin, you wrote a white paper! for subscribing, you are all set for your money saving tips. startxref 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 . You have until September to decide and you should use the time to consult with someone who can review your individual situation. 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. |@5=Ni!_DKZ89_<9Fa0MU)C2:)}yH0u g>.]uj&G([mRgm=G-MA5@au%l :vz,!MM@\Torx9 d:'FK]M2| Advisor action items: Talk the your Alcatel-Lucent clients who may be affected. Over the course of the last year the IRS . old, single, working fulltime, and in great health (knock on wood). It is a sizable amount of money. endstream endobj startxref