If you dont have a choice, but must take the lump sum offered, then I suggest rolling it to an IRA as described above. 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 Currently the LTPP is funded at approximately 149%. endstream endobj 548 0 obj <>stream For Alcatel-Lucent's U.S. pension plans, the funding policy is to contribute amounts to the . Q6) What company is the new annuity going to be with? 0 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. sw hb```\B cbM((-fu`` x';n\("v%u6~:8:F )T@TH HQAA|D,LG&[lnP%Vif^ %t,e`` %x( You point out that the pension trust is overfunded, and inflation has taken its toll, particularly on long-time retirees. This is an extremely important decision and it requires careful consideration. 0000010715 00000 n In addition, Nokia will most probably create a Nokia (USA) subsidiary which would be completely subject to US laws. 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.) 0000014929 00000 n Everyones situation is different and unique to them. Q7) What happens to my healthcare if I take this lump sum buy out? 3QxbOJZL3 i`/ 4(yKH.WT=\}LN8V^*~& sure enough, the lack of stability does bring a certain focus - which, to your point, can be Great article. You may also contact the Alcatel-Lucent Retiree Lump Sum Window Benefits Center at (866) 617-7164. Vm}O%TimaUMG60)f 6(jvR NEZ;[R!m))62Kr)7;yPedf`zms 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.) 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. The attachment labeled Lump Sum Program Announcement identifies who is and is not eligible. )@,F/3H4(-A &.}qp@|te\j|Y#|:Op:[JAa9@gTj-@J In fact Alcatel-Lucent was a foreign company and they could not take our pension funds. 0000017395 00000 n What questions should I be asking? 0000011786 00000 n You have until September to decide and you should use the time to consult with someone who can review your individual situation. at the current rate of yearly allocations given by the employer. Careers at CWA. 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. 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. IF the company decided to terminate the plan they would have to do it under government guidelines. 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. Pros and Cons of Lump Sum Pension Payouts. 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 0000002947 00000 n !J,3pNM,A|f5\mCl]) Pv&hhy 6u!2|)z9F_!lE^wxDaOo8^ %SE91q45),lEQN8:O $o2dhcflYK fgOlK: 2SYu*q"H3;Ydi37t6K^4nb8o?/zYK xb```b``d`e`y |,@Q9F90*oZWcS;ik5H0frrx@,V"a"C8jqP Skip up main content . %PDF-1.7 % 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. 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. Two announcements have been made this year by Alcatel-Lucent and many of you might think they are connected. Your guidance is very much appreciated. Sign up and get the best of News delivered straight to your email inbox, free of charge. One more point, just because our pension are protected now, we should not assume it will always be this way. Tenth Floor A1) Alcatel-Lucent is making available financial and tax education services through Deloitte, an objective, third party organization, at no cost to you. (What you might be thinking is that an IRA is less secure from creditors than a pension payout, and that would be correct.) Legislation and Politics. Plan assets are protected from being used for purposes other than providing benefits (or reasonable administrative expenses). xoH-Ge/+Uj%_lQ8B\R,Nk;Od.''M[fy%'mNd/i(-*i_EvS4H.fx3Vpe You can make some investments that are likely to generate growth and income to support your retirement needs. 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. 0000000776 00000 n The Program Window is only in effect beginning July 20, 2015 and ends at 11:59 p.m. (EDT) on September 25, 2015. Choose your news we will deliver. For media inquiries, call CWA Communications at 202-434-1168 or emailnews@cwa-union.org. Recipients have the option to do nothing and will continue to receive their current monthly annuity payments. Case of the Week: Do Roth Recharacterizations Still Exist? 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. If the plan is not fully-funded, the employer may apply for a distress termination if the employer is in financial distress. Q2) Do I have to take this lump sum buyout offer? In addition, Nokia will most probably create a Nokia (USA) subsidiary which would be completely subject to US laws. In fact Alcatel-Lucent was a foreign company and they could not take our pension funds. Advisor action items: Talk the your Alcatel-Lucent clients who may be affected. 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. 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. XWyTfnzp@EA0DEqD" Get Email Updates; Receive Text Alerts; Detect Your Local; Search; Services Laborer of Worldwide . The lump-sum window runs from July 20 through September 25 and is completely voluntary. 0000007454 00000 n 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. 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. 297 0 obj <>stream More on Alcatel-Lucent retiree and pension issues and the acquisition by Nokia. Traditionally, when interest rates rise by 1% the amount in an Lucent employee's lump-sum will drop by 8 - 12%. 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. Please review the attached documents for complete information regarding this Program. If I do decide to take it, what are my investment options to continue to withdraw on a monthly or yearly basis? The National Association of Plan Advisors is a non-profit professional society. endstream endobj 272 0 obj <>stream |@5=Ni!_DKZ89_<9Fa0MU)C2:)}yH0u g>.]uj&G([mRgm=G-MA5@au%l :vz,!MM@\Torx9 d:'FK]M2| 40 0 obj <>stream 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"). 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. 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. 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. If you are eligible for a lump sum, you may be able to get a significantly . Thank y. Terry Says: Well, first of all, you have one fact wrong. To read about CWA Members, Leadership or Industries, visit ourAbout page. 17 24 For example, hurricane & loss. To do so, however, the employer must prove to a bankruptcy court or to the PBGC . Leadership. You may also contact the Alcatel-Lucent Retiree Lump Sum Window Benefits Center at (866) 617-7164. Following are the questions, with the answers, that we have received to date. THIS PROGRAM IS STRICTLY VOLUNTARY! The attached information (cover letterprogram announcementFTE Guide) will be mailed by Alcatel-Lucent to eligible Plan participants beginning tomorrow, Friday, June 26, 2015. 544 0 obj <> endobj In fact these two announcements are not connected. Menu burger Close thin Facebook Twitter Google plus Linked in Reddit Email arrow-right-sm arrow-right Loading Home Buying Calculators View all Financial Planning / Retirement questions. In fact these two announcements are not connected. 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. The purpose of the Program is to offer eligible former employees the ability to convert their current monthly pension payments into a one-time lump sum payment. It is a sizable amount of money. for subscribing, you are all set for your money saving tips. In fact, at this years CWA T&T Leadership conference, our Research Department conducted a workshop on trends in Pension de-risking and bargaining. Rob Kozlowski writes for Pensions & Investments, a sister publication of Business Insurance. A lump sum pension distribution offers the flexibility of being able to spend or invest your retirement savings any way you see fit. For media inquiries, call CWA Communications at 202-434-1168 or emailnews@cwa-union.org. 685 Third Avenue Privacy PolicyTerms of UseCopyright. To read about CWA Members, Leadership or Industries, visit ourAbout page. 0000002597 00000 n 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. For example, workers compensation. That is not necessarily true. 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. 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. You have until September to decide and you should use the time to consult with someone who can review your individual situation. 17 0 obj <> endobj One of them is offering lump sum buy-outs. Early this year Alcatel-Lucent announced they were investigating offering a voluntary lump sum buy-out of retiree pensions. Learn more here. Therefore, the company cannot just take money from the pension plan and use it for other things. The lump sum amount, if not invested, will hold me for 13 yrs. hmk0"tzc7hh:(}&5se(|EV i"0W-kb@@.P|,rQfd\e.9thw)SV"\N2,]Ew9gmP?e? web design and development by new target, inc. 2023 Communications Workers of America, AFL-CIO, CLC All Rights Reserved | Site Map | Privacy Policy. Hello Terry, 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. Used with permission. If you choose to do nothing, your current monthly pension payments will continue. 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. 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. Even if they are, that does not mean you should take it. Alcatel-Lucent Old Scheme, London, completed a 100 million ($123.7 million) buy-in with Boarding Insurance Core. endstream endobj startxref J m^?bSL&MM>^S!OYuFG]2_w*'~vmi"chV6{8E&`(72jje&}\MlKM+TLigQC42BIj4^C};)k"C+"?j^SDE5[k]83/pivCNSa+| $ A6) The new annuity is a recalculation, for certain individuals, of the old calculations and is still administered by the pension plan. 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). To search for a combination of terms, use quotations and the & symbol. received a package in the mail and realized my pension was based on leaving the company oct, 1982. i left the company on 7/15/85. What asset class is best for corporate plans' growth investments when using LDI? This will limit your search to that combination of words. 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. In Column D, at your life. To consistently deliver news, research and analysis to the executives who manage the flow of funds in the institutional investment market. HWmkF}J\l|MiJ(R~H'gLTYs7-nJU:en\k'Wl2/WTN.\xaAAHy40QXah`h hhh s@`H1HQAi7*+':]0AC [8]XiV# M,y Over the course of the last year the IRS . 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 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. New York, NY 10017-4036, Chicago Office CWA is not in the position to interpret the companys offer and does not give out financial advice. xuSn0>DBH I$}C.SwB#s_u_0Bt lV:~D[S84eF}dKq_ ={K~922&1BOz:`. (And, you will understand why the company wants to end the pension promise because it was too generous.). As we get more information, we will publish it on this site. All of this is costly to the company. Alcatel-Lucent announced it was being purchased by Nokia. ~n]A9iRD wkvU@HB8E8JKkt>:O) I have to decide by Sept. 11, 2015. For media inquiries, call CWA Communications at 202-434-1168 or emailnews@cwa-union.org. you the lump-sum payment. The Pension Protection Act helps to ensure the plan is appropriately funded. hkkG@$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# hbbd```b``z "kd(d? 268 0 obj <> endobj You can have automatic monthly withdrawals, or take money out at any time. Approximately 75,000 eligible former employees, surviving beneficiaries and alternate payees of Alcatel-Lucent have begun receiving formal lump-sum window notices. The advisor asked: What are the details around Alcatel-Lucents lump sum offer to former employees?. 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. [|c-Ur7fg Jlh>{.OQQ ,FuZr"\>`k_,&^[\z^ :;@. @V6l "{1 You may also contact the Nokia Benefits Resource Center. %%EOF TAJ6LuR.u(NdLN_Ht)txF%K.)/|q1oO|uB+t{?ZQWH^ hsPZ=+,wz/
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