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New York, NY 10017-4036, Chicago Office Sign up to receive Terrys free newsletter!! In terms of the Nokia merger There is a fear since Nokia is a foreign company our pensions would no longer be protected. Last week retirees received the first official notice of the lump sum offering. Terry Savage is a nationally recognized expert on personal finance, the economy and the markets. ~n]A9iRD wkvU@HB8E8JKkt>:O) Bottom Line: Rising rates reduce lump sums. If I roll it over, say into an IRA, then the income becomes taxable. 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. !J,3pNM,A|f5\mCl]) Pv&hhy 6u!2|)z9F_!lE^wxDaOo8^ %SE91q45),lEQN8:O $o2dhcflYK fgOlK: 2SYu*q"H3;Ydi37t6K^4nb8o?/zYK Q5) Will the new IRS ruling on pensions affect our Lucent retirees taking this lump sum? Alcatel-Lucent announced it was being purchased by Nokia. To read about CWA Members, Leadership or Industries, visit ourAbout page. The Program Window is only in effect beginning July 20, 2015 and ends at 11:59 p.m. (EDT) on September 25, 2015. After all, getting a huge influx of cash into your account upon retirement would make anyone jump for joy. %%EOF In addition, Nokia will most probably create a Nokia (USA) subsidiary which would be completely subject to US laws. 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.) Alcatel-Lucent to expand lump-sum offer to 32,000 more participants PDF Alcatel Data Networks Inc. Retirement Pension Plan - BenefitAnswers Plus The advisor asked: What are the details around Alcatel-Lucents lump sum offer to former employees?. But keep in mind that a lump sum pension payout makes it easier to overspend in retirement. You can make some investments that are likely to generate growth and income to support your retirement needs. 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.) XWyTfnzp@EA0DEqD" Q6) What company is the new annuity going to be with? 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. they have known this for over 30 days and i am not making any headway with getting it corrected. We have raised the question with Nokia. Health & Safety Fact Sheets ; Legislation & Politics ; News & Events Sell Your Pension & Retirement Plan for a Cash Lump Sum! Plan assets are protected from being used for purposes other than providing benefits (or reasonable administrative expenses). trailer 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. Alcatel-Lucent plans voluntary lump-sum offer in 2015 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"). Currently the LTPP is funded at approximately 149%. 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. 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. 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. If you roll to Fidelity, Vanguard, or T. Rowe Price they will handle both the investment and withdrawal planning for you. Alcatel-Lucent also recommends recipients of the offer consult with their personal financial planner and/or tax advisor before making a decision. endstream endobj 272 0 obj <>stream 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. 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. It is a sizable amount of money. A1) Alcatel-Lucent is making available financial and tax education services through Deloitte, an objective, third party organization, at no cost to you. Their answer is that there are no plans for a cost-of-living raise. In fact these two announcements are not connected. 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 . "9:@$;dIs0&w@qY }*#l8l 0 Early this year Alcatel-Lucent announced they were investigating offering a voluntary lump sum buy-out of retiree pensions. 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. Q2) Do I have to take this lump sum buyout offer? Everyones situation is different and unique to them. Case of the Week: Do Roth Recharacterizations Still Exist? Alcatel-Lucent Pension Lump Sum Buyout - Communications Workers of America 17 24 0000002947 00000 n 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.) PDF Lucent Technologies Inc. Pension Plan - BenefitAnswers Plus 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 The lump-sum window runs from July 20 through September 25 and is completely voluntary. Alcatel-Lucent announced it was being purchased by Nokia. TAJ6LuR.u(NdLN_Ht)txF%K.)/|q1oO|uB+t{?ZQWH^ hsPZ=+,wz/ The CWA actuaries will review them to be sure that how they are being calculated is correct. 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. Q3) Page 10 of the Alcatel-Lucent Retiree Lump Sum Window booklet says the company has rights to terminate either plan, etc. This is an extremely important decision and it requires careful consideration. If you choose to do nothing, your current monthly pension payments will continue. Again, this is an extremely important decision and it requires careful consideration. 0000011786 00000 n Get Email Updates; Receive Text Alerts; Detect Your Local; Search; Services Laborer of Worldwide . 0000007454 00000 n A2) This offer is strictly voluntary. 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: Formerly Represented Retirees of Alcatel-Lucent, Subject: Questions Regarding the Alcatel-Lucent Pension Lump Sum Buyout. It is a sizable amount of money. Workers' Rights Button submenu. 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 web design and development by new target, inc. A recent call with a financial advisor in California is representative of a common question related to pension de-risking and lump sums. History. Legislation and Politics. 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. More on Alcatel-Lucent retiree and pension issues and the acquisition by Nokia. Pension lump sum buyout - Terry Savage Columbia Threadneedle Investments (Columbia Threadneedle) is the global brand name of the Columbia and Threadneedle group of companies. One of them is offering lump sum buy-outs. 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. For media inquiries, call CWA Communications at 202-434-1168 or emailnews@cwa-union.org. 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. In fact Alcatel-Lucent was a foreign company and they could not take our pension funds. |@5=Ni!_DKZ89_<9Fa0MU)C2:)}yH0u g>.]uj&G([mRgm=G-MA5@au%l :vz,!MM@\Torx9 d:'FK]M2| Should You Take Pension Payments or a Lump Sum? A How-To Guide 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. Two announcements have been made this year by Alcatel-Lucent and many of you might think they are connected. You have until September to decide and you should use the time to consult with someone who can review your individual situation. The Lucent Retirees Message Board-Transfer of pension fund from hbbd```b``z "kd(d? For example, hurricane & loss. Some eligible former employees also had the opportunity to change their existing annuity option to a different annuity option. old, single, working fulltime, and in great health (knock on wood). Some former employees might also have the opportunity to change their current annuity option to a different annuity form. Alcatel-Lucent Retiree Pensions - CWA 4900 0000008051 00000 n sw For media inquiries, call CWA Communications at 202-434-1168 or emailnews@cwa-union.org. 0000001515 00000 n 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. The CWA actuaries will review them to be sure that how they are being calculated is correct. 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. Main Office My son in Corby, your life and leadership have been an inspiration to us all. I Receive a Pension From Alcatel-lucent. Received a Package 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). 0000008372 00000 n One more point, just because our pension are protected now, we should not assume it will always be this way. 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). Alcatel-Lucent Lump Sum Pension Offer | Communications Workers of America r?Yw-g{A8se? Jx^m!xDC8p:PI((`![G EkrQXADX 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. For example, workers compensation. Two announcements have been made this year by Alcatel-Lucent and many of you might think they are connected. Alcatel-Lucent Pension Lump Sum Buyout | Communications Workers of 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. xref It doesnt prevent a company from declaring bankruptcy. 0000017395 00000 n under the Plan to a one-time, lump-sum payment. 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. Pension Plans offer lump sums periodically, but typically change once a year. 0 What questions should I be asking? Figuring this out is very simple. 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. %%EOF 40 0 obj <>stream This offer, called the Alcatel-Lucent Retiree Lump-Sum Window Program, formally began on July 20, 2015 and ended on September 25, 2015. endstream endobj startxref All of this is costly to the company. 0000002392 00000 n 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.