The lump-sum window runs from July 20 through September 25 and is completely voluntary. A2) This offer is strictly voluntary. 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. It doesnt prevent a company from declaring bankruptcy. Recipients have the option to do nothing and will continue to receive their current monthly annuity payments. Sign up to receive Terrys free newsletter!! 0000001040 00000 n Case of the Week: Alcatel-Lucent's Lump-Sum Offer XWyTfnzp@EA0DEqD" 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. You DO NOT have to accept this offer. 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. THIS PROGRAM IS STRICTLY VOLUNTARY! To read about CWA Members, Leadership or Industries, visit ourAbout page. You will see offerings frm major insurance companies giving you a monthly payout. tS One more point, just because our pension are protected now, we should not assume it will always be this way. 0000002392 00000 n She writes a weekly personal finance column syndicated in major newspapers by Tribune Content Agency. Q2) Do I have to take this lump sum buyout offer? old, single, working fulltime, and in great health (knock on wood). I have to decide by Sept. 11, 2015. Alcatel-Lucent to expand lump-sum offer to 32,000 more participants In fact, at this years CWA T&T Leadership conference, our Research Department conducted a workshop on trends in Pension de-risking and bargaining. What asset class is best for corporate plans' growth investments when using LDI? 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. hbbd```b``z "kd(d? Over the course of the last year the IRS . About 55,000 It is a sizable amount of money. 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 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. I'd point out however that not all wobble stools are bad. All of this is costly to the company. Types of Pension Payouts: Lump Sum vs. Monthly - SmartAsset 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. 0000007666 00000 n Just go to www.immediateannuities.com, and insert your age, gender, state, and the lump sum amount you have to invest. 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. 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. 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. Your guidance is very much appreciated. Inflation And Pension Lump Sums: Timing Is Everything - Forbes 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. hmk0"tzc7hh:(}&5se(|EV i"0W-kb@@.P|,rQfd\e.9thw)SV"\N2,]Ew9gmP?e? xoH-Ge/+Uj%_lQ8B\R,Nk;Od.''M[fy%'mNd/i(-*i_EvS4H.fx3Vpe 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-1.5 % 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. 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). 569 0 obj <>stream 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 0000008051 00000 n 268 0 obj <> endobj 0000015024 00000 n 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. If I roll it over, say into an IRA, then the income becomes taxable. %PDF-1.4 % 17 24 More on Alcatel-Lucent retiree and pension issues and the acquisition by Nokia. web design and development by new target, inc. Q6) What company is the new annuity going to be with? 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. We have raised the question with Nokia. Questions Regarding the Alcatel-Lucent Pension Lump Sum Buyout. These resources include group sessions, individual sessions and a Financial and Tax Education Tool. You DO NOT have to accept this offer. 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. 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. Early this year Alcatel-Lucent announced they were investigating offering a voluntary lump sum buy-out of retiree pensions. To read about CWA Members, Leadership or Industries, visit ourAbout page. You may also contact the Nokia Benefits Resource Center. 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. Alcatel-Lucent announced it was being purchased by Nokia. %%EOF 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). Figuring this out is very simple. The Lucent Retirees Message Board-Transfer of pension fund from Get Email Updates; Receive Text Alerts; Detect Your Local; Search; Services Laborer of Worldwide . 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. 0000002947 00000 n [|c-Ur7fg Jlh>{.OQQ ,FuZr"\>`k_,&^[\z^ :;@. @V6l "{1 To read about CWA Members, Leadership or Industries, visit ourAbout page. HWmkF}J\l|MiJ(R~H'g 617-7164. To: Formerly Represented Retirees of Alcatel-Lucent, Subject: Questions Regarding the Alcatel-Lucent Pension Lump Sum Buyout. Call 1-888-232-4111 and select "Retirement and Investments", then select "Pension". 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. You can have automatic monthly withdrawals, or take money out at any time. This is an extremely important decision and it requires careful consideration. 0 17 0 obj <> endobj Recipients have the option to do nothing and will continue to receive their current monthly annuity payments. What questions should I be asking? And it's true that one dollar in 1990 purchasing power requires $2.73 today. Pension Plans offer lump sums periodically, but typically change once a year. Q4) Also on page 15 in the Financial & Tax booklet, provided by the company, it says if they go broke we get nothing in a pension. 3QxbOJZL3 i`/ 4(yKH.WT=\}LN8V^*~& Some former employees might also have the opportunity to change their current annuity option to a different annuity form. Get access to the news, research and analysis of events affecting the retirement and institutional money management businesses from a worldwide network of reporters and editors. Main Office Beware of companies that extend the start of their payout beyond this normal 1 month, because this can have a big impact on your income from the annuity. Alcatel-Lucent informed the CWA National yesterday that they intend to make available to certain former employees, surviving beneficiaries and alternate payees, who are currently receiving monthly pension payments from the Lucent Technologies Inc. Pension Plan (the Plan), a Lucent Retiree Lump Sum Window Program (the Program). xuSn0>DBH I$}C.SwB#s_u_0Bt lV:~D[S84eF}dKq_ ={K~922&1BOz:`. The materials contained herein are intended for instruction only and are not a substitute for professional advice. In fact these two announcements are not connected. Alcatel-Lucent Pension Lump Sum Buyout | Communications Workers of 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. Menu burger Close thin Facebook Twitter Google plus Linked in Reddit Email arrow-right-sm arrow-right Loading Home Buying Calculators 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. endstream endobj 272 0 obj <>stream TAJ6LuR.u(NdLN_Ht)txF%K.)/|q1oO|uB+t{?ZQWH^ hsPZ=+,wz/ 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). Everyones situation is different and unique to them. Sell Your Pension & Retirement Plan for a Cash 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.) Case of the Week: Do Roth Recharacterizations Still Exist? Former employee, ATT/Lucent/Alcatel-Lucent is offering a lump sum buyout of our pensions. The Pension Protection Act helps to ensure the plan is appropriately funded. Copyright 2023by NAPA, Compliance Administrator (TPA) Evaluation. 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. I need to continue to withdraw money from my pension to live. 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"). In Column D, at your life. Alcatel-Lucent to expand lump-sum offer to 32,000 more participants 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. J m^?bSL&MM>^S!OYuFG]2_w*'~vmi"chV6{8E&`(72jje&}\MlKM+TLigQC42BIj4^C};)k"C+"?j^SDE5[k]83/pivCNSa+| $ PDF Summary of Material Modifications Alcatel-Lucent Retirement Income Plan |@5=Ni!_DKZ89_<9Fa0MU)C2:)}yH0u g>.]uj&G([mRgm=G-MA5@au%l :vz,!MM@\Torx9 d:'FK]M2| Examples of those protections are: The Company may not retroactively reduce those benefits, once they are vested. That is not necessarily true. 0000009608 00000 n In addition, Nokia will most probably create a Nokia (USA) subsidiary which would be completely subject to US laws. ~n]A9iRD wkvU@HB8E8JKkt>:O) 40 0 obj <>stream 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. Alcatel-Lucent Old Scheme, London, completed a 100 million ($123.7 million) buy-in with Boarding Insurance Core. hkkG@$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# Rob Kozlowski writes for Pensions & Investments, a sister publication of Business Insurance. 2015 Columbia Management Investment Advisers, LLC. 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. endstream endobj startxref Case of the Week: Plan Establishment and Compensation, Case of the Week: Faulty Form 5500 Filings and Reasonable Cause, BREAKING NEWS: Announcing the 2022 NAPA Top DC Advisor Teams, Breaking News: Biden Vetoes Congressional Resolution Blocking ESG Rule, Jerry Schlichter and Tom Clark Fiduciary Litigation Debate: DC Pension Geeks Podcast, Brian Graff Has a Stark Warning for Advisors: NAPA 401(k) Summit, 401(k)s Increasingly Under Attack in Wake of SECURE 2.0 Passage. 0000010715 00000 n Holy cow, Nevin, you wrote a white paper! New York, NY 10017-4036, Chicago Office You point out that the pension trust is overfunded, and inflation has taken its toll, particularly on long-time retirees. )@,F/3H4(-A &.}qp@|te\j|Y#|:Op:[JAa9@gTj-@J 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 After all, getting a huge influx of cash into your account upon retirement would make anyone jump for joy. 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. 0000001515 00000 n 0000017395 00000 n If you are eligible for a lump sum, you may be able to get a significantly . This offer, called the Alcatel-Lucent Retiree Lump-Sum Window Program, formally began on July 20, 2015 and ended on September 25, 2015.