Following are the questions, with the answers, that we have received to date. Early this year Alcatel-Lucent announced they were investigating offering a voluntary lump sum buy-out of retiree pensions. NRLN Lucent/Nokia Retirees Chapter hmk0"tzc7hh:(}&5se(|EV i"0W-kb@@.P|,rQfd\e.9thw)SV"\N2,]Ew9gmP?e? Case of the Week: Alcatel-Lucent's Lump-Sum Offer The materials contained herein are intended for instruction only and are not a substitute for professional advice. 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. About 55,000 The attached information (cover letterprogram announcementFTE Guide) will be mailed by Alcatel-Lucent to eligible Plan participants beginning tomorrow, Friday, June 26, 2015. So assuming that you are not going to be sued, this is strictly a financial planning question. 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). 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. 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. Plan assets are protected from being used for purposes other than providing benefits (or reasonable administrative expenses). hb```\B cbM((-fu``
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Workers' Rights Button submenu. They could do that by purchasing annuities through an insurance company. Examples of those protections are: The Company may not retroactively reduce those benefits, once they are vested. One more point, just because our pension are protected now, we should not assume it will always be this way. In fact these two announcements are not connected. 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. Can the company terminate the pension plan? For media inquiries, call CWA Communications at 202-434-1168 or emailnews@cwa-union.org. Your guidance is very much appreciated. The Program is not being offered to everyone. 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. It is a sizable amount of money. PDF Lucent Technologies Inc. Pension Plan Summary of Material Modifications That is not necessarily true. Alcatel-Lucent announced it was being purchased by Nokia. 0000014070 00000 n
PDF Alcatel Data Networks Inc. Retirement Pension Plan - BenefitAnswers Plus What questions should I be asking? xb```b``d`e`y |,@Q9F90*oZWcS;ik5H0frrx@,V"a"C8jqP sure enough, the lack of stability does bring a certain focus - which, to your point, can be Great article. Jobs, Health Care & Retirement Security . Last week retirees received the first official notice of the lump sum offering. Approximately 75,000 eligible former employees, surviving beneficiaries and alternate payees of Alcatel-Lucent have begun receiving formal lump-sum window notices. 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. Early this year Alcatel-Lucent announced they were investigating offering a voluntary lump sum buy-out of retiree pensions. A lump sum payout is the more exciting option of the two. 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. More on Alcatel-Lucent Retiree and Pension Issues and the acquisition 268 0 obj
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zv# 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. I have to decide by Sept. 11, 2015. J m^?bSL&MM>^S!OYuFG]2_w*'~vmi"chV6{8E&`(72jje&}\MlKM+TLigQC42BIj4^C};)k"C+"?j^SDE5[k]83/pivCNSa+| $
Dossier of the Week: Alcatel-Lucent's Lump-Sum Offer Case of the Week: Do Roth Recharacterizations Still Exist? (And, you will understand why the company wants to end the pension promise because it was too generous.). Retirement Savings & Pension - BenefitAnswers Plus In fact, at this years CWA T&T Leadership conference, our Research Department conducted a workshop on trends in Pension de-risking and bargaining. You will receive your first bill in mid-November for your December coverage. In fact, at this years CWA T&T Leadership conference, our Research Department conducted a workshop on trends in Pension de-risking and bargaining. Q5) Will the new IRS ruling on pensions affect our Lucent retirees taking this lump sum? THIS PROGRAM IS STRICTLY VOLUNTARY! After all, getting a huge influx of cash into your account upon retirement would make anyone jump for joy. )@,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. for subscribing, you are all set for your money saving tips. Sign up to receive Terrys free newsletter!! under the Plan to a one-time, lump-sum payment. Even if they are, that does not mean you should take it. Sign up and get the best of News delivered straight to your email inbox, free of charge. Vm}O%TimaUMG60)f 6(jvR
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In Column D, at your life. Should You Take Pension Payments or a Lump Sum? A How-To Guide A6) The new annuity is a recalculation, for certain individuals, of the old calculations and is still administered by the pension plan. 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 . Alcatel-Lucent Lump Sum Buy Out Of Monthly Pension Payments You DO NOT have to accept this offer. 0000017395 00000 n
Eligible former employees are NOT required to make any changes to how or when they receive their Plan benefits. 685 Third Avenue 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. 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 About Change submenu. The lump-sum window runs from July 20 through September 25 and is completely voluntary. Lucent? How to Navigate Pension Changes - The Retirement Group 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. 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 Alcatel-Lucent's U.S. pension plans, the funding policy is to contribute amounts to the .
Again, this is an extremely important decision and it requires careful consideration. Two announcements have been made this year by Alcatel-Lucent and many of you might think they are connected. Plan assets are protected from being used for purposes other than providing benefits (or reasonable administrative expenses). One of them is offering lump sum buy-outs. History. You will see offerings frm major insurance companies giving you a monthly payout. What about the Pension Protection Act? Pros and Cons of Lump Sum Pension Payouts. (What you might be thinking is that an IRA is less secure from creditors than a pension payout, and that would be correct.) endstream
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"kd(d? 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. The Lucent Retirees Message Board-Transfer of pension fund from xoH-Ge/+Uj%_lQ8B\R,Nk;Od.''M[fy%'mNd/i(-*i_EvS4H.fx3Vpe Menu burger Close thin Facebook Twitter Google plus Linked in Reddit Email arrow-right-sm arrow-right Loading Home Buying Calculators 0
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. 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. 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. To do so, however, the employer must prove to a bankruptcy court or to the PBGC . web design and development by new target, inc. 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. If you choose to do nothing, your current monthly pension payments will continue. A3) The language on page 10 is standard language. The lump sum amount, if not invested, will hold me for 13 yrs. Q1) Where can I get more information about this offer? 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. 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.