Questions Regarding the Alcatel-Lucent Pension Lump Sum Buyout. Careers at CWA. 0000001515 00000 n It doesnt prevent a company from declaring bankruptcy. 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 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). To search for a combination of terms, use quotations and the & symbol. Advisor action items: Talk the your Alcatel-Lucent clients who may be affected. 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. Alcatel-Lucent announced it was being purchased by Nokia. That is not necessarily true. If you choose to do nothing, your current monthly pension payments will continue. Following are the questions, with the answers, that we have received to date. Currently the LTPP is funded at approximately 149%. You may also contact the Alcatel-Lucent Retiree Lump Sum Window Benefits Center at (866) 617-7164. She writes a weekly personal finance column syndicated in major newspapers by Tribune Content Agency. The attachment labeled Lump Sum Program Announcement identifies who is and is not eligible. Learn more here. old, single, working fulltime, and in great health (knock on wood). This is an extremely important decision and it requires careful consideration. Legislation and Politics. If you choose to do nothing, your current monthly pension payments will continue. The CWA actuaries will review them to be sure that how they are being calculated is correct. `lsIf8 y[e?f-IE2.H54&%6h2SQ HUE{RV3@@ endstream endobj 548 0 obj <>stream This means that there are specific guidelines that must be followed under federal law. 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.) Privacy PolicyTerms of UseCopyright. xuSn0>DBH I$}C.SwB#s_u_0Bt lV:~D[S84eF}dKq_ ={K~922&1BOz:`. 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. 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. 544 0 obj <> endobj Main Office %PDF-1.7 % i received an offer for a lump sum payout based on the incorrect monthly pension. I have many questions. Alcatel-Lucent to expand lump-sum offer to 32,000 more participants 3QxbOJZL3 i`/ 4(yKH.WT=\}LN8V^*~& I have to decide by Sept. 11, 2015. Even if they are, that does not mean you should take it. The CWA actuaries will review them to be sure that how they are being calculated is correct. In terms of the Nokia merger There is a fear since Nokia is a foreign company our pensions would no longer be protected. 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. 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. To consistently deliver news, research and analysis to the executives who manage the flow of funds in the institutional investment market. You can have automatic monthly withdrawals, or take money out at any time. To search specifically for more than one word, put the search term in quotation marks. In fact these two announcements are not connected. PDF Lucent Technologies Inc. Pension Plan - BenefitAnswers Plus PDF Annual Funding Notice Alcatel-Lucent Retirement Income Plan 2023 Communications Workers of America, AFL-CIO, CLC All Rights Reserved | Site Map | Privacy Policy. 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. If I roll it over, say into an IRA, then the income becomes taxable. 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. New York, NY 10017-4036, Chicago Office (And, you will understand why the company wants to end the pension promise because it was too generous.). Retirement Savings & Pension - BenefitAnswers Plus 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. PDF Alcatel Data Networks Inc. Retirement Pension Plan - BenefitAnswers Plus If you are eligible for a lump sum, you may be able to get a significantly . You have until September to decide and you should use the time to consult with someone who can review your individual situation. You DO NOT have to accept this offer. If you dont have a choice, but must take the lump sum offered, then I suggest rolling it to an IRA as described above. View all Financial Planning / Retirement questions. What asset class is best for corporate plans' growth investments when using LDI? In fact Alcatel-Lucent was a foreign company and they could not take our pension funds. %%EOF In addition, Nokia will most probably create a Nokia (USA) subsidiary which would be completely subject to US laws. 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. 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. Today, the pension plan is covered by ERISA and is protected by the Pension Benefit Guaranty Corporation (PBGC). 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. Alcatel-Lucent Old Scheme, London, completed a 100 million ($123.7 million) buy-in with Boarding Insurance Core. To read about CWA Members, Leadership or Industries, visit ourAbout page. Q6) What company is the new annuity going to be with? old, single, working fulltime, and in great health (knock on wood). Alcatel-Lucent also recommends recipients of the offer consult with their personal financial planner and/or tax advisor before making a decision. Tenth Floor 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 Dossier of the Week: Alcatel-Lucent's Lump-Sum Offer As we get more information, we will publish it on this site. 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. Q2) Do I have to take this lump sum buyout offer? But keep in mind that a lump sum pension payout makes it easier to overspend in retirement. Over the course of the last year the IRS . J m^?bSL&MM>^S!OYuFG]2_w*'~vmi"chV6{8E&`(72jje&}\MlKM+TLigQC42BIj4^C};)k"C+"?j^SDE5[k]83/pivCNSa+| $ One more point, just because our pension are protected now, we should not assume it will always be this way. 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. What You Can Do on the YBR Website If you are now receiving benefits: View your payment confirmations and history; More on Alcatel-Lucent retiree and pension issues and the acquisition by Nokia. 0000008051 00000 n I Receive a Pension From Alcatel-lucent. Received a Package 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. %%EOF Workers' Rights Button submenu. For Alcatel-Lucent's U.S. pension plans, the funding policy is to contribute amounts to the . Social Security Solvency: Is it Really That Bad? Should You Take Pension Payments or a Lump Sum? A How-To Guide Sign up to receive Terrys free newsletter!! 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. "It is an excuse to put money into their underfunded plan . 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 I need to continue to withdraw money from my pension to live. To do so, however, the employer must prove to a bankruptcy court or to the PBGC . Alcatel-Lucent Lump Sum Pension Offer | Communications Workers of America 0000014974 00000 n Nokia to merge its 401(k) plan into Alcatel-Lucent's offering xoH-Ge/+Uj%_lQ8B\R,Nk;Od.''M[fy%'mNd/i(-*i_EvS4H.fx3Vpe The Program Window is only in effect beginning July 20, 2015 and ends at 11:59 p.m. (EDT) on September 25, 2015. A3) The language on page 10 is standard language. 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). You can make some investments that are likely to generate growth and income to support your retirement needs. The premium amount will still be based on what your current monthly pension amount is today. I need to continue to withdraw money from my pension to live. 0000000016 00000 n You have until September to decide and you should use the time to consult with someone who can review your individual situation. Vm}O%TimaUMG60)f 6(jvR NEZ;[R!m))62Kr)7;yPedf`zms 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. 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. 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. 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.) If the plan is not fully-funded, the employer may apply for a distress termination if the employer is in financial distress. Q1) Where can I get more information about this offer? You point out that the pension trust is overfunded, and inflation has taken its toll, particularly on long-time retirees. 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. That is not necessarily true. Terry Savage is a nationally recognized expert on personal finance, the economy and the markets. 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. Plan assets are protected from being used for purposes other than providing benefits (or reasonable administrative expenses). 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. 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. 0000001040 00000 n These resources include group sessions, individual sessions and a Financial and Tax Education Tool. 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. What questions should I be asking? We have raised the question with Nokia.