The Program Window is only in effect beginning July 20, 2015 and ends at 11:59 p.m. (EDT) on September 25, 2015. To read about CWA Members, Leadership or Industries, visit ourAbout page. Vm}O%TimaUMG60)f 6(jvR NEZ;[R!m))62Kr)7;yPedf`zms 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.) In fact these two announcements are not connected. Because this offer was already approved and in the works it is NOT impacted by the ruling. for subscribing, you are all set for your money saving tips. The CWA actuaries will review them to be sure that how they are being calculated is correct. Workers' Rights Button submenu. 2023 Communications Workers of America, AFL-CIO, CLC All Rights Reserved | Site Map | Privacy Policy. 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, 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. 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. 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. A5) The new ruling by the IRS addresses discontinuing offering a lump sum buy out in certain circumstances going forward. To search for a combination of terms, use quotations and the & symbol. Alcatel-Lucent announced it was being purchased by Nokia. 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). A2) This offer is strictly voluntary. (And, you will understand why the company wants to end the pension promise because it was too generous.). Everyones situation is different and unique to them. 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. startxref 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. I have to decide by Sept. 11, 2015. Pension Plans offer lump sums periodically, but typically change once a year. Alcatel-Lucent announced it was being purchased by Nokia. 685 Third Avenue 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. "It is an excuse to put money into their underfunded plan . 8bOM4JDEEE3`%y1OSwR;jysrU ;(SRg3,}tc qR{SeL1E9im|6';Ye]DHH. [|c-Ur7fg Jlh>{.OQQ ,FuZr"\>`k_,&^[\z^ :;@. @V6l "{1 Columbia Threadneedle Investments (Columbia Threadneedle) is the global brand name of the Columbia and Threadneedle group of companies. This will limit your search to that combination of words. 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 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. Q2) Do I have to take this lump sum buyout offer? 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 . hmk0"tzc7hh:(}&5se(|EV i"0W-kb@@.P|,rQfd\e.9thw)SV"\N2,]Ew9gmP?e? 0000011786 00000 n In addition, Nokia will most probably create a Nokia (USA) subsidiary which would be completely subject to US laws. Following are the questions, with the answers, that we have received to date. xoH-Ge/+Uj%_lQ8B\R,Nk;Od.''M[fy%'mNd/i(-*i_EvS4H.fx3Vpe She writes a weekly personal finance column syndicated in major newspapers by Tribune Content Agency. 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. 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. This means that there are specific guidelines that must be followed under federal law. Health & Safety Fact Sheets ; Legislation & Politics ; News & Events 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. Your guidance is very much appreciated. BIs Article search uses Boolean search capabilities. If you dont have a choice, but must take the lump sum offered, then I suggest rolling it to an IRA as described above. they have known this for over 30 days and i am not making any headway with getting it corrected. The lump sum amount, if not invested, will hold me for 13 yrs. If I do decide to take it, what are my investment options to continue to withdraw on a monthly or yearly basis? Social Security Solvency: Is it Really That Bad? That is not necessarily true. \?Q8za"mb CMz>GWcgeXSoGcg z!#}'`yOx"(:otxJ+;`Oc56d jnSf;Tm;H8b`i@5@(^hq;X8@d]EXr|w^>|K3Y6g9skZy&jteg}aBM\ju.Ks8XpOTi#Dl8gCx. r?Yw-g{A8se? Jx^m!xDC8p:PI((`![G EkrQXADX 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.) 0000001040 00000 n )@,F/3H4(-A &.}qp@|te\j|Y#|:Op:[JAa9@gTj-@J 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# Careers at CWA. 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. In addition, Nokia will most probably create a Nokia (USA) subsidiary which would be completely subject to US laws. XWyTfnzp@EA0DEqD" 0000014974 00000 n That is not necessarily true. %%EOF If I roll it over, say into an IRA, then the income becomes taxable. Skip up main content . This offer, called the Alcatel-Lucent Retiree Lump-Sum Window Program, formally began on July 20, 2015 and ended on September 25, 2015. 0000008051 00000 n 0000015024 00000 n For media inquiries, call CWA Communications at 202-434-1168 or emailnews@cwa-union.org. Figuring this out is very simple. Early this year Alcatel-Lucent announced they were investigating offering a voluntary lump sum buy-out of retiree pensions. They could do that by purchasing annuities through an insurance company. 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 . 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. This is an extremely important decision and it requires careful consideration. PBGC proposes pension plan risk-transfer disclosure requirement, Ford pension plan funding holds steady in 2014, COPYRIGHT 2023 BUSINESS INSURANCE HOLDINGS. For Alcatel-Lucent's U.S. pension plans, the funding policy is to contribute amounts to the . A6) The new annuity is a recalculation, for certain individuals, of the old calculations and is still administered by the pension plan. If the plan is not fully-funded, the employer may apply for a distress termination if the employer is in financial distress. 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. Thank y. Terry Says: Well, first of all, you have one fact wrong. You may also contact the Nokia Benefits Resource Center. If you choose to do nothing, your current monthly pension payments will continue. To do so, however, the employer must prove to a bankruptcy court or to the PBGC . A lump sum payout is the more exciting option of the two. xb```b``d`e`y |,@Q9F90*oZWcS;ik5H0frrx@,V"a"C8jqP 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. 0000007454 00000 n 40 0 obj <>stream Tenth Floor 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"). Choose your news we will deliver. xref 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 It is a sizable amount of money. old, single, working fulltime, and in great health (knock on wood). In fact these two announcements are not connected. 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. tS endstream endobj 273 0 obj <>stream Main Office sw hbbd```b``z "kd(d? A1) Alcatel-Lucent is making available financial and tax education services through Deloitte, an objective, third party organization, at no cost to you. 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.) In terms of the Nokia merger -- There is a fear since Nokia is a foreign company our pensions would no longer be protected. 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. Learn more here. It is a sizable amount of money. %PDF-1.4 % 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. To read about CWA Members, Leadership or Industries, visit ourAbout page. Alcatel-Lucent also recommends recipients of the offer consult with their personal financial planner and/or tax advisor before making a decision. Terry Savage is a nationally recognized expert on personal finance, the economy and the markets. 0000001958 00000 n One of them is offering lump sum buy-outs. And it's true that one dollar in 1990 purchasing power requires $2.73 today. 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. In fact these two announcements are not connected. You can make some investments that are likely to generate growth and income to support your retirement needs. 0 0000014070 00000 n Can the company terminate the pension plan? 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. 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 You can have automatic monthly withdrawals, or take money out at any time. 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. 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). 0000002947 00000 n 0000008372 00000 n 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 In terms of the Nokia merger There is a fear since Nokia is a foreign company our pensions would no longer be protected. 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. Holy cow, Nevin, you wrote a white paper! Even if they are, that does not mean you should take it. More on Alcatel-Lucent retiree and pension issues and the acquisition by Nokia. 130 E. Randolph St. We have raised the question with Nokia. 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. 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 544 0 obj <> endobj 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. Over the course of the last year the IRS . For media inquiries, call CWA Communications at 202-434-1168 or emailnews@cwa-union.org. Synopsis of Material Modifications Alcatel-Lucent Retirement . Recipients have the option to do nothing and will continue to receive their current monthly annuity payments. One of them is offering lump sum buy-outs. sure enough, the lack of stability does bring a certain focus - which, to your point, can be Great article. Used with permission. THIS PROGRAM IS STRICTLY VOLUNTARY! 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. 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 More on Alcatel-Lucent retiree and pension issues and the acquisition by Nokia. 0000001515 00000 n New York, NY 10017-4036, Chicago Office 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. Alcatel-Lucent Retiree Lump Sum Window Benefits Center at (866) 617-7164. *4w| sX8#.i_96"he@;(e[*'m'-Ksbzgh k@0n`76Cdi} fK0/h. {j Alcatel-Lucent announced it was being purchased by Nokia. 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. "9:@$;dIs0&w@qY }*#l8l 0 Currently the LTPP is funded at approximately 149%. 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. A3) The language on page 10 is standard language. The attachment labeled Lump Sum Program Announcement identifies who is and is not eligible. 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. 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. Just go to www.immediateannuities.com, and insert your age, gender, state, and the lump sum amount you have to invest. 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. 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. 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. web design and development by new target, inc. %%EOF 17 24 Last week retirees received the first official notice of the lump sum offering. 0000015986 00000 n Q1) Where can I get more information about this offer? i receive a pension from alcatel-lucent. These mailings detail a one-time opportunity to convert their remaining annuity payments under the Alcatel-Lucent Retirement Income Plan or Lucent Technologies Inc. Pension Plan to a lump-sum payment. If you roll to Fidelity, Vanguard, or T. Rowe Price they will handle both the investment and withdrawal planning for you. You DO NOT have to accept this offer.
