3QxbOJZL3 i`/ 4(yKH.WT=\}LN8V^*~& trailer Or you could wait a few years to buy an. This offer, called the Alcatel-Lucent Retiree Lump-Sum Window Program, formally began on July 20, 2015 and ended on September 25, 2015. !J,3pNM,A|f5\mCl]) Pv&hhy 6u!2|)z9F_!lE^wxDaOo8^ %SE91q45),lEQN8:O $o2dhcflYK fgOlK: 2SYu*q"H3;Ydi37t6K^4nb8o?/zYK The Columbus Dispatch Tuesday February 16, 2016 5:00 AM. You DO NOT have to accept this offer. 0000012893 00000 n To read about CWA Members, Leadership or Industries, visit ourAbout page. 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.) 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. 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. i receive a pension from alcatel-lucent. If you choose to do nothing, your current monthly pension payments will continue. 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. Figuring this out is very simple. Your guidance is very much appreciated. 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 . Privacy PolicyTerms of UseCopyright. The Program is not being offered to everyone. XWyTfnzp@EA0DEqD" 0000010715 00000 n 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. 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. If you dont have a choice, but must take the lump sum offered, then I suggest rolling it to an IRA as described above. xuSn0>DBH I$}C.SwB#s_u_0Bt lV:~D[S84eF}dKq_ ={K~922&1BOz:`. Choose your news we will deliver. %%EOF Plan assets are protected from being used for purposes other than providing benefits (or reasonable administrative expenses). 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. To search for a combination of terms, use quotations and the & symbol. Eligible former employees are NOT required to make any changes to how or when they receive their Plan benefits. You DO NOT have to accept this offer. These resources include group sessions, individual sessions and a Financial and Tax Education Tool. That will get you a guaranteed stream of (fully taxable) income for as long as you live. 0000001121 00000 n Please review the attached documents for complete information regarding this Program. %%EOF hmk0"tzc7hh:(}&5se(|EV i"0W-kb@@.P|,rQfd\e.9thw)SV"\N2,]Ew9gmP?e? HWmkF}J\l|MiJ(R~H'g--formally began on July 20, 2015 and ended on September 25, 2015. 130 E. Randolph St. 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. 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. *4w| sX8#.i_96"he@;(e[*'m'-Ksbzgh k@0n`76Cdi} fK0/h. {j tS web design and development by new target, inc. Their answer is that there are no plans for a cost-of-living raise. Holy cow, Nevin, you wrote a white paper! Pros and Cons of Lump Sum Pension Payouts. One more point, just because our pension are protected now, we should not assume it will always be this way. About 55,000 L Ne`8H3*00\?0 Z* Some eligible former employees also had the opportunity to change their existing annuity option to a different annuity option. Alcatel-Lucent Old Scheme, London, completed a 100 million ($123.7 million) buy-in with Boarding Insurance Core. More on Alcatel-Lucent retiree and pension issues and the acquisition by Nokia. Last week retirees received the first official notice of the lump sum offering. I have many questions. 0 My son in Corby, your life and leadership have been an inspiration to us all. 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. You have until September to decide and you should use the time to consult with someone who can review your individual situation. In fact, at this years CWA T&T Leadership conference, our Research Department conducted a workshop on trends in Pension de-risking and bargaining. old, single, working fulltime, and in great health (knock on wood). Even if they are, that does not mean you should take it. 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. 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). And it's true that one dollar in 1990 purchasing power requires $2.73 today. %PDF-1.7 % I'd point out however that not all wobble stools are bad. 0 One of them is offering lump sum buy-outs. The lump-sum window runs from July 20 through September 25 and is completely voluntary. sw [|c-Ur7fg Jlh>{.OQQ ,FuZr"\>`k_,&^[\z^ :;@. @V6l "{1 0000015024 00000 n %PDF-1.4 % You may also contact the Alcatel-Lucent Retiree Lump Sum Window Benefits Center at (866) 617-7164. It is a sizable amount of money. Legislation and Politics. If I roll it over, say into an IRA, then the income becomes taxable. 8bOM4JDEEE3`%y1OSwR;jysrU ;(SRg3,}tc qR{SeL1E9im|6';Ye]DHH. All of this is costly to the company. A6) The new annuity is a recalculation, for certain individuals, of the old calculations and is still administered by the pension plan. 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. i received an offer for a lump sum payout based on the incorrect monthly pension. For Alcatel-Lucent's U.S. pension plans, the funding policy is to contribute amounts to the . endstream endobj 272 0 obj <>stream Q1) Where can I get more information about this offer? Tenth Floor 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. sure enough, the lack of stability does bring a certain focus - which, to your point, can be Great article. As we get more information, we will publish it on this site. 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. Sign up to receive Terrys free newsletter!! 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). for subscribing, you are all set for your money saving tips. 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. 544 0 obj <> endobj The lump-sum window runs from July 20 through September 25 and is completely voluntary. 0000007666 00000 n CWA is not in the position to interpret the companys offer and does not give out financial advice. 2023 Communications Workers of America, AFL-CIO, CLC All Rights Reserved | Site Map | Privacy Policy, To: Alcatel- Lucent Formerly Represented Retirees, Surviving Beneficiaries and Alternate Payees, RE: Lump Sum Buy Out Of Monthly Pension Payments, Alcatel-Lucent Lump Sum Buy Out Of Monthly Pension Payments. 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. 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# 0000022178 00000 n 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). Vm}O%TimaUMG60)f 6(jvR NEZ;[R!m))62Kr)7;yPedf`zms 0000002947 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. If you choose to do nothing, your current monthly pension payments will continue. Over the course of the last year the IRS . 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. 0000014974 00000 n 0000014929 00000 n You may also contact the Alcatel-Lucent Retiree Lump Sum Window Benefits Center at (866) 617-7164. To search specifically for more than one word, put the search term in quotation marks. Because this offer was already approved and in the works it is NOT impacted by the ruling. I have to decide by Sept. 11, 2015. 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. Q5) Will the new IRS ruling on pensions affect our Lucent retirees taking this lump sum? In Column D, at your life. A1) Alcatel-Lucent is making available financial and tax education services through Deloitte, an objective, third party organization, at no cost to you. If you roll to Fidelity, Vanguard, or T. Rowe Price they will handle both the investment and withdrawal planning for you. 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 0000007454 00000 n 0000015986 00000 n "It is an excuse to put money into their underfunded plan . 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 A schedule of those sessions is in the Financial and Tax Education Guide booklet provided in the program announcement package. Columbia Threadneedle Investments (Columbia Threadneedle) is the global brand name of the Columbia and Threadneedle group of companies. A lump sum payout is the more exciting option of the two. New York, NY 10017-4036, Chicago Office Everyones situation is different and unique to them. you the lump-sum payment. 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 they have known this for over 30 days and i am not making any headway with getting it corrected. 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. `lsIf8 y[e?f-IE2.H54&%6h2SQ HUE{RV3@@ That new car or luxurious vacation may not . Main Office Below is a list of employers that have announced that they are offering lump-sum pension buyouts to certain groups of employees, former employees, or retirees. TAJ6LuR.u(NdLN_Ht)txF%K.)/|q1oO|uB+t{?ZQWH^ hsPZ=+,wz/ In fact these two announcements are not connected. If I do decide to take it, what are my investment options to continue to withdraw on a monthly or yearly basis? Traditionally, when interest rates rise by 1% the amount in an Lucent employee's lump-sum will drop by 8 - 12%. Learn more here. 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. 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.) 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. Leadership. More on Alcatel-Lucent retiree and pension issues and the acquisition by Nokia. 0000008372 00000 n 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. 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. Early this year Alcatel-Lucent announced they were investigating offering a voluntary lump sum buy-out of retiree pensions. BIs Article search uses Boolean search capabilities. To: Formerly Represented Retirees of Alcatel-Lucent, Subject: Questions Regarding the Alcatel-Lucent Pension Lump Sum Buyout. Health & Safety Fact Sheets ; Legislation & Politics ; News & Events Approximately 75,000 eligible former employees, surviving beneficiaries and alternate payees of Alcatel-Lucent have begun receiving formal lump-sum window notices. Illinois DOES NOT currently tax IRA withdrawals. Some former employees might also have the opportunity to change their current annuity option to a different annuity form. Alcatel-Lucent also recommends recipients of the offer consult with their personal financial planner and/or tax advisor before making a decision. Q7) What happens to my healthcare if I take this lump sum buy out? For example, hurricane & loss. If you are eligible for a lump sum, you may be able to get a significantly . startxref 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. 17 0 obj <> endobj You may also contact the Nokia Benefits Resource Center. For media inquiries, call CWA Communications at 202-434-1168 or emailnews@cwa-union.org. xb```b``d`e`y |,@Q9F90*oZWcS;ik5H0frrx@,V"a"C8jqP 0000002392 00000 n at the current rate of yearly allocations given by the employer. (What you might be thinking is that an IRA is less secure from creditors than a pension payout, and that would be correct.) endstream endobj 273 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"). So assuming that you are not going to be sued, this is strictly a financial planning question. This means that there are specific guidelines that must be followed under federal law. 553 0 obj <>/Filter/FlateDecode/ID[<94B3386967048548A045BA5BD9299ADC><31856CD454ED2C479B066D538F2F01B1>]/Index[544 26]/Info 543 0 R/Length 70/Prev 342004/Root 545 0 R/Size 570/Type/XRef/W[1 3 1]>>stream A3) The language on page 10 is standard language. About Change submenu. Workers' Rights Button submenu. Alcatel-Lucent announced it was being purchased by Nokia. I need to continue to withdraw money from my pension to live. Q2) Do I have to take this lump sum buyout offer? What asset class is best for corporate plans' growth investments when using LDI? One more point, just because our pension are protected now, we should not assume it will always be this way. The lump sum amount, if not invested, will hold me for 13 yrs. %%EOF Recipients have the option to do nothing and will continue to receive their current monthly annuity payments. 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. Alcatel-Lucent announced it was being purchased by Nokia. THIS PROGRAM IS STRICTLY VOLUNTARY! In terms of the Nokia merger There is a fear since Nokia is a foreign company our pensions would no longer be protected. Bottom Line: Rising rates reduce lump sums. Hello Terry, 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 .
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