alcatel lucent pension lump sum

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. 0000001121 00000 n Columbia Threadneedle Investments (Columbia Threadneedle) is the global brand name of the Columbia and Threadneedle group of companies. 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.) History. 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. 40 0 obj <>stream Plan assets are protected from being used for purposes other than providing benefits (or reasonable administrative expenses). To search for a combination of terms, use quotations and the & symbol. 0000001515 00000 n )@,F/3H4(-A &.}qp@|te\j|Y#|:Op:[JAa9@gTj-@J 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. You can make some investments that are likely to generate growth and income to support your retirement needs. Examples of those protections are: The Company may not retroactively reduce those benefits, once they are vested. 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. You have until September to decide and you should use the time to consult with someone who can review your individual situation. A3) The language on page 10 is standard language. Can the company terminate the pension plan? %%EOF endstream endobj 548 0 obj <>stream To consistently deliver news, research and analysis to the executives who manage the flow of funds in the institutional investment market. The lump-sum window runs from July 20 through September 25 and is completely voluntary. 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 . Thank y. Terry Says: Well, first of all, you have one fact wrong. HWmkF}J\l|MiJ(R~H'g![3(!yrqK.//n+BS2bj~BT g8neSlI9oC9/rgczB7e DC4eUS;,'uq_6#:87lS1YA(V[cEUXq#\"?v,|nSIE%v](4h vZJz'^ trailer About Change submenu. Jobs, Health Care & Retirement Security . 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. After all, getting a huge influx of cash into your account upon retirement would make anyone jump for joy. Early this year Alcatel-Lucent announced they were investigating offering a voluntary lump sum buy-out of retiree pensions. I have to decide by Sept. 11, 2015. I need to continue to withdraw money from my pension to live. This is an extremely important decision and it requires careful consideration. XWyTfnzp@EA0DEqD" %%EOF 0000008051 00000 n Alcatel-Lucent also recommends recipients of the offer consult with their personal financial planner and/or tax advisor before making a decision. 0000014070 00000 n THIS PROGRAM IS STRICTLY VOLUNTARY! 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. hbbd```b``z "kd(d? 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). 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 A2) This offer is strictly voluntary. All of this is costly to the company. 0000002597 00000 n One of them is offering lump sum buy-outs. In fact, at this years CWA T&T Leadership conference, our Research Department conducted a workshop on trends in Pension de-risking and bargaining. Just go to www.immediateannuities.com, and insert your age, gender, state, and the lump sum amount you have to invest. 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. for subscribing, you are all set for your money saving tips. That will get you a guaranteed stream of (fully taxable) income for as long as you live. Q6) What company is the new annuity going to be with? 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. 2015 Columbia Management Investment Advisers, LLC. What You Can Do on the YBR Website If you are now receiving benefits: View your payment confirmations and history; If I roll it over, say into an IRA, then the income becomes taxable. One more point, just because our pension are protected now, we should not assume it will always be this way. Copyright 2023by NAPA, Compliance Administrator (TPA) Evaluation. Vm}O%TimaUMG60)f 6(jvR NEZ;[R!m))62Kr)7;yPedf`zms Workers' Rights Button submenu. 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. [|c-Ur7fg Jlh>{.OQQ ,FuZr"\>`k_,&^[\z^ :;@. @V6l "{1 Alcatel-Lucent announced it was being purchased by Nokia. I have many questions. 0000010715 00000 n 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. 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). "9:@$;dIs0&w@qY }*#l8l 0 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. They could do that by purchasing annuities through an insurance company. 0000007666 00000 n To search specifically for more than one word, put the search term in quotation marks. 268 0 obj <> endobj under the Plan to a one-time, lump-sum payment. Everyones situation is different and unique to them. To read about CWA Members, Leadership or Industries, visit ourAbout page. Eligible former employees are NOT required to make any changes to how or when they receive their Plan benefits. `lsIf8 y[e?f-IE2.H54&%6h2SQ HUE{RV3@@ Alcatel-Lucent announced it was being purchased by Nokia. 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. If you choose to do nothing, your current monthly pension payments will continue. Bottom Line: Rising rates reduce lump sums. If the plan is not fully-funded, the employer may apply for a distress termination if the employer is in financial distress. You point out that the pension trust is overfunded, and inflation has taken its toll, particularly on long-time retirees. 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.) 0000000016 00000 n The ERISA consultants at the Learning Center Resource Desk, which is available through Columbia Threadneedle Investments, regularly receive calls from financial advisors on a broad array of technical topics related to IRAs and qualified retirement plans. 0000007454 00000 n Last week retirees received the first official notice of the lump sum offering. 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. As of Dec. 31, 2013, the U.S. pension funds had $30.1 billion in assets and $26.2 billion in projected benefit obligations, for a funding ratio of 115%, according to the companys most recent 20-F filing. For example, workers compensation. Employers that reduce the risk of their pension plans could face a new requirement: disclosing basic information about the transactions to the Pension Benefit Guaranty Corp. as part of paying their annual premium to the federal agency. This offer, called the Alcatel-Lucent Retiree Lump-Sum Window Program, formally began on July 20, 2015 and ended on September 25, 2015. Legacy Alcatel-Lucent Pension Plan If you are eligible for a legacy Alcatel-Lucent pension benefit, you can learn more about it through the YBR website. Two announcements have been made this year by Alcatel-Lucent and many of you might think they are connected. a835gQ00]=8gVYROU4CCXghhr'Hcbo2.0k7.8-1pC*A#=W[K!F$R# This means that there are specific guidelines that must be followed under federal law. In fact these two announcements are not connected. tS TAJ6LuR.u(NdLN_Ht)txF%K.)/|q1oO|uB+t{?ZQWH^ hsPZ=+,wz/ Learn more here. Again, this is an extremely important decision and it requires careful consideration. Everyones situation is different and unique to them. 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. One of them is offering lump sum buy-outs. 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. 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.) Privacy PolicyTerms of UseCopyright. Case of the Week: Do Roth Recharacterizations Still Exist? 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. What about the Pension Protection Act? 0000011786 00000 n Hello Terry, Biggest Lucent Pension Drop in a Generation. they have known this for over 30 days and i am not making any headway with getting it corrected. Q5) Will the new IRS ruling on pensions affect our Lucent retirees taking this lump sum? For example, hurricane & loss. !J,3pNM,A|f5\mCl]) Pv&hhy 6u!2|)z9F_!lE^wxDaOo8^ %SE91q45),lEQN8:O $o2dhcflYK fgOlK: 2SYu*q"H3;Ydi37t6K^4nb8o?/zYK xoH-Ge/+Uj%_lQ8B\R,Nk;Od.''M[fy%'mNd/i(-*i_EvS4H.fx3Vpe \?Q8za"mb CMz>GWcgeXSoGcg z!#}'`yOx"(:otxJ+;`Oc56d jnSf;Tm;H8b`i@5@(^hq;X8@d]EXr|w^>|K3Y6g9skZy&jteg}aBM\ju.Ks8XpOTi#Dl8gCx. The company said in its fourth-quarter 2014 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. 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 Alcatel-Lucent Old Scheme, London, completed a 100 million ($123.7 million) buy-in with Boarding Insurance Core. The purpose of the Program is to offer eligible former employees the ability to convert their current monthly pension payments into a one-time lump sum payment. In addition, Nokia will most probably create a Nokia (USA) subsidiary which would be completely subject to US laws. I am 64 yrs. endstream endobj 273 0 obj <>stream 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. 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. Q2) Do I have to take this lump sum buyout offer? Q1) Where can I get more information about this offer? Alcatel-Lucent announced it was being purchased by Nokia. The attached information (cover letterprogram announcementFTE Guide) will be mailed by Alcatel-Lucent to eligible Plan participants beginning tomorrow, Friday, June 26, 2015. You DO NOT have to accept this offer. 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. Health & Safety Fact Sheets ; Legislation & Politics ; News & Events For media inquiries, call CWA Communications at 202-434-1168 or emailnews@cwa-union.org. Illinois DOES NOT currently tax IRA withdrawals. In fact these two announcements are not connected. startxref J m^?bSL&MM>^S!OYuFG]2_w*'~vmi"chV6{8E&`(72jje&}\MlKM+TLigQC42BIj4^C};)k"C+"?j^SDE5[k]83/pivCNSa+| $ Former employee, ATT/Lucent/Alcatel-Lucent is offering a lump sum buyout of our pensions. Traditionally, when interest rates rise by 1% the amount in an Lucent employee's lump-sum will drop by 8 - 12%. Call 1-888-232-4111 and select "Retirement and Investments", then select "Pension". We have raised the question with Nokia. 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. 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 announced it was being purchased by Nokia. You may also contact the Alcatel-Lucent Retiree Lump Sum Window Benefits Center at (866) 617-7164. I need to continue to withdraw money from my pension to live. *4w| sX8#.i_96"he@;(e[*'m'-Ksbzgh k@0n`76Cdi} fK0/h. {j A6) The new annuity is a recalculation, for certain individuals, of the old calculations and is still administered by the pension plan. 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.) These resources include group sessions, individual sessions and a Financial and Tax Education Tool. A recent call with a financial advisor in California is representative of a common question related to pension de-risking and lump sums. old, single, working fulltime, and in great health (knock on wood). endstream endobj 272 0 obj <>stream hb```\B cbM((-fu`` x';n\("v%u6~:8:F )T@TH HQAA|D,LG&[lnP%Vif^ %t,e`` %x( If I do decide to take it, what are my investment options to continue to withdraw on a monthly or yearly basis? 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. Recipients have the option to do nothing and will continue to receive their current monthly annuity payments. Leadership. 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. 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. 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. 0000000776 00000 n 17 24 A decision by telecom company Alcatel-Lucent to move $3 billion out of a well-funded pension fund for retired workers into a fund for managers has union leaders worried about the long-term stability of the retirees' fund. 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. Holy cow, Nevin, you wrote a white paper! The lump sum amount, if not invested, will hold me for 13 yrs. Tenth Floor 17 0 obj <> endobj Menu burger Close thin Facebook Twitter Google plus Linked in Reddit Email arrow-right-sm arrow-right Loading Home Buying Calculators Recipients have the option to do nothing and will continue to receive their current monthly annuity payments. Sign up and get the best of News delivered straight to your email inbox, free of charge. Figuring this out is very simple. 0 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. Q3) Page 10 of the Alcatel-Lucent Retiree Lump Sum Window booklet says the company has rights to terminate either plan, etc. Or you could wait a few years to buy an. 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. It is a sizable amount of money. Plan assets are protected from being used for purposes other than providing benefits (or reasonable administrative expenses). If you dont have a choice, but must take the lump sum offered, then I suggest rolling it to an IRA as described above. You have until September to decide and you should use the time to consult with someone who can review your individual situation. Last week retirees received the first official notice of the lump sum offering. It doesnt prevent a company from declaring bankruptcy. For Alcatel-Lucent's U.S. pension plans, the funding policy is to contribute amounts to the . 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. The advisor asked: What are the details around Alcatel-Lucents lump sum offer to former employees?. In fact these two announcements are not connected. 3QxbOJZL3 i`/ 4(yKH.WT=\}LN8V^*~& What asset class is best for corporate plans' growth investments when using LDI? %PDF-1.4 % 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. Q7) What happens to my healthcare if I take this lump sum buy out? 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 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. you the lump-sum payment. 0000001958 00000 n Main Office The Columbus Dispatch Tuesday February 16, 2016 5:00 AM. More on Alcatel-Lucent retiree and pension issues and the acquisition by Nokia. 0 The premium amount will still be based on what your current monthly pension amount is today. Today, the pension plan is covered by ERISA and is protected by the Pension Benefit Guaranty Corporation (PBGC). PBGC proposes pension plan risk-transfer disclosure requirement, Ford pension plan funding holds steady in 2014, COPYRIGHT 2023 BUSINESS INSURANCE HOLDINGS. While a pension annuity offers a fixed monthly income, a. Social Security Solvency: Is it Really That Bad? 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 Advisor action items: Talk the your Alcatel-Lucent clients who may be affected. 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.
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