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. I need to continue to withdraw money from my pension to live. You may also contact the Alcatel-Lucent Retiree Lump Sum Window Benefits Center at (866) 617-7164. |@5=Ni!_DKZ89_<9Fa0MU)C2:)}yH0u g>.]uj&G([mRgm=G-MA5@au%l :vz,!MM@\Torx9 d:'FK]M2| 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. The attached information (cover letterprogram announcementFTE Guide) will be mailed by Alcatel-Lucent to eligible Plan participants beginning tomorrow, Friday, June 26, 2015. But keep in mind that a lump sum pension payout makes it easier to overspend in retirement. It is a sizable amount of money. You point out that the pension trust is overfunded, and inflation has taken its toll, particularly on long-time retirees. Careers at CWA. Even if they are, that does not mean you should take it. Early this year Alcatel-Lucent announced they were investigating offering a voluntary lump sum buy-out of retiree pensions. Copyright 2023by NAPA, Compliance Administrator (TPA) Evaluation. Early this year Alcatel-Lucent announced they were investigating offering a voluntary lump sum buy-out of retiree pensions. hb```\B cbM((-fu`` x';n\("v%u6~:8:F )T@TH HQAA|D,LG&[lnP%Vif^ %t,e`` %x( A2) This offer is strictly voluntary. Currently the LTPP is funded at approximately 149%. 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. Beware of companies that extend the start of their payout beyond this normal 1 month, because this can have a big impact on your income from the annuity. 0000000776 00000 n `lsIf8 y[e?f-IE2.H54&%6h2SQ HUE{RV3@@ 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 . This is an extremely important decision and it requires careful consideration. 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. Alcatel-Lucent announced it was being purchased by Nokia. That will get you a guaranteed stream of (fully taxable) income for as long as you live. 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). That is not necessarily true. 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. 0000001515 00000 n sw 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. Former employee, ATT/Lucent/Alcatel-Lucent is offering a lump sum buyout of our pensions. In fact, at this years CWA T&T Leadership conference, our Research Department conducted a workshop on trends in Pension de-risking and bargaining. 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 endstream endobj startxref HWmkF}J\l|MiJ(R~H'g Holy cow, Nevin, you wrote a white paper! 2015 Columbia Management Investment Advisers, LLC. 130 E. Randolph St. Please review the attached documents for complete information regarding this Program. 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. 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 . Pros and Cons of Lump Sum Pension Payouts. 2023 Communications Workers of America, AFL-CIO, CLC All Rights Reserved | Site Map | Privacy Policy. What about the Pension Protection Act? hbbd```b``A$Sd9&@A vX{> These resources include group sessions, individual sessions and a Financial and Tax Education Tool. 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. 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. The attachment labeled Lump Sum Program Announcement identifies who is and is not eligible. endstream endobj startxref startxref Sign up to receive Terrys free newsletter!! 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). 0000007666 00000 n Over the course of the last year the IRS . 0000009608 00000 n New York, NY 10017-4036, Chicago Office For Alcatel-Lucent's U.S. pension plans, the funding policy is to contribute amounts to the . endstream endobj 273 0 obj <>stream xref Get Email Updates; Receive Text Alerts; Detect Your Local; Search; Services Laborer of Worldwide . A schedule of those sessions is in the Financial and Tax Education Guide booklet provided in the program announcement package. 17 0 obj <> endobj 0 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). My son in Corby, your life and leadership have been an inspiration to us all. %PDF-1.5 % 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.) Plan assets are protected from being used for purposes other than providing benefits (or reasonable administrative expenses). Alcatel-Lucent announced it was being purchased by Nokia. hbbd```b``z "kd(d? 569 0 obj <>stream If I do decide to take it, what are my investment options to continue to withdraw on a monthly or yearly basis? you the lump-sum payment. Alcatel-Lucent Old Scheme, London, completed a 100 million ($123.7 million) buy-in with Boarding Insurance Core. If you choose to do nothing, your current monthly pension payments will continue. (What you might be thinking is that an IRA is less secure from creditors than a pension payout, and that would be correct.) old, single, working fulltime, and in great health (knock on wood). they have known this for over 30 days and i am not making any headway with getting it corrected. 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 . 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. Hello Terry, 0000002947 00000 n 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. 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. endstream endobj 548 0 obj <>stream 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. Tenth Floor Advisor action items: Talk the your Alcatel-Lucent clients who may be affected. Any money left over in the fund the company would have to pay a penalty tax on. In addition, Nokia will most probably create a Nokia (USA) subsidiary which would be completely subject to US laws. sure enough, the lack of stability does bring a certain focus - which, to your point, can be Great article. It doesnt prevent a company from declaring bankruptcy. "It is an excuse to put money into their underfunded plan . THIS PROGRAM IS STRICTLY VOLUNTARY! <]>> To do so, however, the employer must prove to a bankruptcy court or to the PBGC . i received an offer for a lump sum payout based on the incorrect monthly pension. 0000008372 00000 n They could do that by purchasing annuities through an insurance company. What asset class is best for corporate plans' growth investments when using LDI? 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. %PDF-1.7 % Skip up main content . 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. Thank y. Terry Says: Well, first of all, you have one fact wrong. 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). The lump-sum window runs from July 20 through September 25 and is completely voluntary. under the Plan to a one-time, lump-sum payment. Again, this is an extremely important decision and it requires careful consideration. This offer, called the Alcatel-Lucent Retiree Lump-Sum Window Program, formally began on July 20, 2015 and ended on September 25, 2015. If I roll it over, say into an IRA, then the income becomes taxable. Leadership. All of this is costly to the company. Q2) Do I have to take this lump sum buyout offer? Recipients have the option to do nothing and will continue to receive their current monthly annuity payments. 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. Q2) Do I have to take this lump sum buyout offer? *4w| sX8#.i_96"he@;(e[*'m'-Ksbzgh k@0n`76Cdi} fK0/h. {j In fact Alcatel-Lucent was a foreign company and they could not take our pension funds. Early this year Alcatel-Lucent announced they were investigating offering a voluntary lump sum buy-out of retiree pensions. Today, the pension plan is covered by ERISA and is protected by the Pension Benefit Guaranty Corporation (PBGC). In fact Alcatel-Lucent was a foreign company and they could not take our pension funds. 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. I am 64 yrs. xb```b``d`e`y |,@Q9F90*oZWcS;ik5H0frrx@,V"a"C8jqP 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 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.
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