alcatel lucent pension lump sum

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.) If you choose to do nothing, your current monthly pension payments will continue. 40 0 obj <>stream Sell Your Pension & Retirement Plan for a Cash Lump Sum! 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. But keep in mind that a lump sum pension payout makes it easier to overspend in retirement. Used with permission. IF the company decided to terminate the plan they would have to do it under government guidelines. 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). 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. 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. |@5=Ni!_DKZ89_<9Fa0MU)C2:)}yH0u g>.]uj&G([mRgm=G-MA5@au%l :vz,!MM@\Torx9 d:'FK]M2| Social Security Solvency: Is it Really That Bad? I am 64 yrs. 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. 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. 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. old, single, working fulltime, and in great health (knock on wood). To do so, however, the employer must prove to a bankruptcy court or to the PBGC . It is a sizable amount of money. Careers at CWA. Plan assets are protected from being used for purposes other than providing benefits (or reasonable administrative expenses). Therefore, the company cannot just take money from the pension plan and use it for other things. 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. %PDF-1.7 % Should You Take Pension Payments or a Lump Sum? A How-To Guide This is an extremely important decision and it requires careful consideration. All of this is costly to the company. Please review the attached documents for complete information regarding this Program. 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.) 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. 0000008372 00000 n 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. PDF Lucent Technologies Inc. Pension Plan - BenefitAnswers Plus The lump-sum window runs from July 20 through September 25 and is completely voluntary. Main Office Get Email Updates; Receive Text Alerts; Detect Your Local; Search; Services Laborer of Worldwide . Because this offer was already approved and in the works it is NOT impacted by the ruling. If you are eligible for a lump sum, you may be able to get a significantly . Alcatel-Lucent enters into second buy-in for U.K. pension plan For media inquiries, call CWA Communications at 202-434-1168 or emailnews@cwa-union.org. To read about CWA Members, Leadership or Industries, visit ourAbout page. My son in Corby, your life and leadership have been an inspiration to us all. And it's true that one dollar in 1990 purchasing power requires $2.73 today. We have raised the question with Nokia. Alcatel-Lucent, Murray Hill, New Jersey, announced Friday it plans to extend an offer of an immediate lump-sum payment to about 32,000 retirees and former employees in its U.S. Inactive . %PDF-1.4 % Two announcements have been made this year by Alcatel-Lucent and many of you might think they are connected. View all Financial Planning / Retirement questions. Columbia Threadneedle Investments (Columbia Threadneedle) is the global brand name of the Columbia and Threadneedle group of companies. 8bOM4JDEEE3`%y1OSwR;jysrU ;(SRg3,}tc qR{SeL1E9im|6';Ye]DHH. sw Nokia to merge its 401(k) plan into Alcatel-Lucent's offering Privacy PolicyTerms of UseCopyright. endstream endobj startxref What You Can Do on the YBR Website If you are now receiving benefits: View your payment confirmations and history; endstream endobj 18 0 obj <> endobj 19 0 obj <>/ProcSet[/PDF/Text]/ExtGState<>>>/Type/Page>> endobj 20 0 obj <> endobj 21 0 obj <> endobj 22 0 obj <> endobj 23 0 obj <> endobj 24 0 obj <>stream 0 Early this year Alcatel-Lucent announced they were investigating offering a voluntary lump sum buy-out of retiree pensions. Alcatel-Lucent Retiree Pensions - CWA 4900 a835gQ00]=8gVYROU4CCXghhr'Hcbo2.0k7.8-1pC*A#=W[K!F$R# One more point, just because our pension are protected now, we should not assume it will always be this way. 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. xref You DO NOT have to accept this offer. What questions should I be asking? hbbd```b``A$Sd9&@A vX{> 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. 0000007454 00000 n 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. 17 24 `lsIf8 y[e?f-IE2.H54&%6h2SQ HUE{RV3@@ Q5) Will the new IRS ruling on pensions affect our Lucent retirees taking this lump sum? PDF Summary of Material Modifications Alcatel-Lucent Retirement Income Plan As of Dec. 31, 2013, the U.S. pension funds had $30.1 billion in assets and $26.2 billion in projected benefit obligations, for a funding ratio of 115%, according to the companys most recent 20-F filing. Examples of those protections are: The Company may not retroactively reduce those benefits, once they are vested. On the one hand, you could roll the lump sum into an IRA, with no tax consequences, and then manage the investments and a withdrawal plan (with a certain Minimum Required Distribution) every year. Pension lump sum buyout - Terry Savage %PDF-1.5 % In mid-July, eligible retirees will be sent a Your Benefit Decision Kit, which will show the amount of the individuals lump sum payment and any new annuity options (if applicable) that are available to them under the Program. Alcatel-Lucent also recommends recipients of the offer consult with their personal financial planner and/or taxes advisor before making a decision. hbbd```b``z "kd(d? Dossier of the Week: Alcatel-Lucent's Lump-Sum Offer Alcatel-Lucent Pension Lump Sum Buyout | Communications Workers of The Program Window is only in effect beginning July 20, 2015 and ends at 11:59 p.m. (EDT) on September 25, 2015. xoH-Ge/+Uj%_lQ8B\R,Nk;Od.''M[fy%'mNd/i(-*i_EvS4H.fx3Vpe 569 0 obj <>stream Sign up to receive Terrys free newsletter!! xuSn0>DBH I$}C.SwB#s_u_0Bt lV:~D[S84eF}dKq_ ={K~922&1BOz:`. 0 Alcatel-Lucent plans voluntary lump-sum offer in 2015 Retirement Savings & Pension - BenefitAnswers Plus (And, you will understand why the company wants to end the pension promise because it was too generous.). She writes a weekly personal finance column syndicated in major newspapers by Tribune Content Agency. 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. Alcatel-Lucent Pension Lump Sum Buyout - Communications Workers of America Q2) Do I have to take this lump sum buyout offer? 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). endstream endobj 548 0 obj <>stream Alcatel-Lucent to expand lump-sum offer to 32,000 more participants A recent call with a financial advisor in California is representative of a common question related to pension de-risking and lump sums. When to Accept a Buyout | Kiplinger 130 E. Randolph St. Alcatel-Lucent also recommends recipients of the offer consult with their personal financial planner and/or tax advisor before making a decision. <]>> I need to continue to withdraw money from my pension to live. endstream endobj 272 0 obj <>stream For media inquiries, call CWA Communications at 202-434-1168 or emailnews@cwa-union.org. Therefore, the company cannot just take money from the pension plan and use it for other things. Even if they are, that does not mean you should take it. Just go to www.immediateannuities.com, and insert your age, gender, state, and the lump sum amount you have to invest. 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. Recipients have the option to do nothing and will continue to receive their current monthly annuity payments. Questions Regarding the Alcatel-Lucent Pension Lump Sum Buyout. You DO NOT have to accept this offer. You will see offerings frm major insurance companies giving you a monthly payout. 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 asset class is best for corporate plans' growth investments when using LDI? Pension Plans offer lump sums periodically, but typically change once a year. Thank y. Terry Says: Well, first of all, you have one fact wrong. [|c-Ur7fg Jlh>{.OQQ ,FuZr"\>`k_,&^[\z^ :;@. @V6l "{1 Alcatel-Lucent Lump Sum Pension Offer | Communications Workers of America 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). In terms of the Nokia merger -- There is a fear since Nokia is a foreign company our pensions would no longer be protected. A5) The new ruling by the IRS addresses discontinuing offering a lump sum buy out in certain circumstances going forward. Alcatel-Lucent Lump Sum Buy Out Of Monthly Pension Payments Terry Savage is a nationally recognized expert on personal finance, the economy and the markets. 0000007666 00000 n How to Avoid Taxes on Lump Sum Pension Payout - SmartAsset Jobs, Health Care & Retirement Security . Choose your news we will deliver. I have many questions. %%EOF That will get you a guaranteed stream of (fully taxable) income for as long as you live. If you roll to Fidelity, Vanguard, or T. Rowe Price they will handle both the investment and withdrawal planning for you. A3) The language on page 10 is standard language. Companies that are offering lump-sum pension buyouts - Pension Rights 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. If you choose to do nothing, your current monthly pension payments will continue. !J,3pNM,A|f5\mCl]) Pv&hhy 6u!2|)z9F_!lE^wxDaOo8^ %SE91q45),lEQN8:O $o2dhcflYK fgOlK: 2SYu*q"H3;Ydi37t6K^4nb8o?/zYK If the plan is not fully-funded, the employer may apply for a distress termination if the employer is in financial distress. Approximately 75,000 eligible former employees, surviving beneficiaries and alternate payees of Alcatel-Lucent have begun receiving formal lump-sum window notices. 0000014974 00000 n Early this year Alcatel-Lucent announced they were investigating offering a voluntary lump sum buy-out of retiree pensions. In terms of the Nokia merger There is a fear since Nokia is a foreign company our pensions would no longer be protected. In Column D, at your life. %%EOF 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. 0000008051 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 fact Alcatel-Lucent was a foreign company and they could not take our pension funds. Q7) What happens to my healthcare if I take this lump sum buy out? 544 0 obj <> endobj Tenth Floor Eligible former employees are NOT required to make any changes to how or when they receive their Plan benefits. Or you could wait a few years to buy an. As we get more information, we will publish it on this site. Alcatel-Lucent announced it was being purchased by Nokia. 0000015986 00000 n Hello Terry, PDF Lucent Technologies Inc. Pension Plan Summary of Material Modifications Vm}O%TimaUMG60)f 6(jvR NEZ;[R!m))62Kr)7;yPedf`zms Q3) Page 10 of the Alcatel-Lucent Retiree Lump Sum Window booklet says the company has rights to terminate either plan, etc. 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. You can have automatic monthly withdrawals, or take money out at any time. Some eligible former employees also had the opportunity to change their existing annuity option to a different annuity option. A schedule of those sessions is in the Financial and Tax Education Guide booklet provided in the program announcement package. More on Alcatel-Lucent Retiree and Pension Issues and the acquisition Menu burger Close thin Facebook Twitter Google plus Linked in Reddit Email arrow-right-sm arrow-right Loading Home Buying Calculators Traditionally, when interest rates rise by 1% the amount in an Lucent employee's lump-sum will drop by 8 - 12%. The attachment labeled Lump Sum Program Announcement identifies who is and is not eligible. 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. If I roll it over, say into an IRA, then the income becomes taxable. Figuring this out is very simple. PDF Annual Funding Notice Alcatel-Lucent Retirement Income Plan 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. 0000011786 00000 n 0000001121 00000 n L Ne`8H3*00\?0 Z* PBGC proposes pension plan risk-transfer disclosure requirement, Ford pension plan funding holds steady in 2014, COPYRIGHT 2023 BUSINESS INSURANCE HOLDINGS. You will receive your first bill in mid-November for your December coverage. To read about CWA Members, Leadership or Industries, visit ourAbout page. ~n]A9iRD wkvU@HB8E8JKkt>:O) Alcatel-Lucent Old Scheme, London, completed a 100 million ($123.7 million) buy-in with Boarding Insurance Core. To read about CWA Members, Leadership or Industries, visit ourAbout page. Illinois DOES NOT currently tax IRA withdrawals. TAJ6LuR.u(NdLN_Ht)txF%K.)/|q1oO|uB+t{?ZQWH^ hsPZ=+,wz/ hb```\B cbM((-fu`` x';n\("v%u6~:8:F )T@TH HQAA|D,LG&[lnP%Vif^ %t,e`` %x( One more point, just because our pension are protected now, we should not assume it will always be this way. 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. 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. XWyTfnzp@EA0DEqD" 297 0 obj <>stream THIS PROGRAM IS STRICTLY VOLUNTARY! 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. To consistently deliver news, research and analysis to the executives who manage the flow of funds in the institutional investment market. You may also contact the Alcatel-Lucent Retiree Lump Sum Window Benefits Center at (866) 617-7164. (What you might be thinking is that an IRA is less secure from creditors than a pension payout, and that would be correct.) web design and development by new target, inc. Q6) What company is the new annuity going to be with? 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. *4w| sX8#.i_96"he@;(e[*'m'-Ksbzgh k@0n`76Cdi} fK0/h. {j Alcatel-Lucent Pension Functionality, London, completing a 100 billion ($123.7 million) buy-in at Pension Insurance Corp. Alcatel-Lucent enters into second buy-in for U.K. pension plan | Pensions & Investments - Brink's offers lump-sum payment to former employees Q1) Where can I get more information about this offer? "9:@$;dIs0&w@qY }*#l8l 0 That is not necessarily true. for subscribing, you are all set for your money saving tips. 685 Third Avenue PDF Alcatel Data Networks Inc. Retirement Pension Plan - BenefitAnswers Plus 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 to expand lump-sum offer to 32,000 more participants 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. Q2) Do I have to take this lump sum buyout offer? Alcatel-Lucent Pension Lump Sum Buyout | Communications Workers of

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