Your guidance is very much appreciated. The attached information (cover letterprogram announcementFTE Guide) will be mailed by Alcatel-Lucent to eligible Plan participants beginning tomorrow, Friday, June 26, 2015. %%EOF 40 0 obj <>stream 0000001958 00000 n 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. And it's true that one dollar in 1990 purchasing power requires $2.73 today. 544 0 obj <> endobj THIS PROGRAM IS STRICTLY VOLUNTARY! You can have automatic monthly withdrawals, or take money out at any time. Last week retirees received the first official notice of the lump sum offering. In fact Alcatel-Lucent was a foreign company and they could not take our pension funds. You will receive your first bill in mid-November for your December coverage. A3) The language on page 10 is standard language. 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 . 0000001121 00000 n 0000002947 00000 n IF the company decided to terminate the plan they would have to do it under government guidelines. 0000014974 00000 n Approximately 75,000 eligible former employees, surviving beneficiaries and alternate payees of Alcatel-Lucent have begun receiving formal lump-sum window notices. 569 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. 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. Suite 3200 In terms of the Nokia merger There is a fear since Nokia is a foreign company our pensions would no longer be protected. you the lump-sum payment. Again, this is an extremely important decision and it requires careful consideration. 8bOM4JDEEE3`%y1OSwR;jysrU ;(SRg3,}tc qR{SeL1E9im|6';Ye]DHH. 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. 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). Sign up and get the best of News delivered straight to your email inbox, free of charge. Or you could wait a few years to buy an. One more point, just because our pension are protected now, we should not assume it will always be this way. Q6) What company is the new annuity going to be with? 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 are eligible for a lump sum, you may be able to get a significantly . I need to continue to withdraw money from my pension to live. You have until September to decide and you should use the time to consult with someone who can review your individual situation. 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. 0000000776 00000 n 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 hbbd```b``A$Sd9&@A vX{> (What you might be thinking is that an IRA is less secure from creditors than a pension payout, and that would be correct.) Two announcements have been made this year by Alcatel-Lucent and many of you might think they are connected. Q1) Where can I get more information about this offer? 130 E. Randolph St. As we get more information, we will publish it on this site. For media inquiries, call CWA Communications at 202-434-1168 or emailnews@cwa-union.org. 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). 297 0 obj <>stream Can the company terminate the pension plan? Currently IL does not charge on pension income? endstream endobj 272 0 obj <>stream Q3) Page 10 of the Alcatel-Lucent Retiree Lump Sum Window booklet says the company has rights to terminate either plan, etc. endstream endobj 273 0 obj <>stream The lump sum amount, if not invested, will hold me for 13 yrs. Vm}O%TimaUMG60)f 6(jvR NEZ;[R!m))62Kr)7;yPedf`zms %PDF-1.5 % Synopsis of Material Modifications Alcatel-Lucent Retirement . That is not necessarily true. Social Security Solvency: Is it Really That Bad? Workers' Rights Button submenu. Alcatel-Lucent also recommends recipients of the offer consult with their personal financial planner and/or tax advisor before making a decision. One more point, just because our pension are protected now, we should not assume it will always be this way. That new car or luxurious vacation may not . 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.) To do so, however, the employer must prove to a bankruptcy court or to the PBGC . One of them is offering lump sum buy-outs. To: Formerly Represented Retirees of Alcatel-Lucent, Subject: Questions Regarding the Alcatel-Lucent Pension Lump Sum Buyout. So assuming that you are not going to be sued, this is strictly a financial planning question. 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. 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. This offer, called the Alcatel-Lucent Retiree Lump-Sum Window Program, formally began on July 20, 2015 and ended on September 25, 2015. Interest rates have increased rapidly over the course of 2022, and if you receive your Lucent pension as a lump sum this reduces the value. Questions Regarding the Alcatel-Lucent Pension Lump Sum Buyout. xoH-Ge/+Uj%_lQ8B\R,Nk;Od.''M[fy%'mNd/i(-*i_EvS4H.fx3Vpe PBGC proposes pension plan risk-transfer disclosure requirement, Ford pension plan funding holds steady in 2014, COPYRIGHT 2023 BUSINESS INSURANCE HOLDINGS. One of them is offering lump sum buy-outs. 0000011786 00000 n The CWA actuaries will review them to be sure that how they are being calculated is correct. ~n]A9iRD wkvU@HB8E8JKkt>:O) 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). 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. 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. Q2) Do I have to take this lump sum buyout offer? About Change submenu. The Program is not being offered to everyone. All of this is costly to the company. Former employee, ATT/Lucent/Alcatel-Lucent is offering a lump sum buyout of our pensions. 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. Main Office Alcatel-Lucent also recommends recipients of the offer consult with their personal financial planner and/or taxes advisor before making a decision. Advisor action items: Talk the your Alcatel-Lucent clients who may be affected. The premium amount will still be based on what your current monthly pension amount is today. CWA is not in the position to interpret the companys offer and does not give out financial advice. 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. The advisor asked: What are the details around Alcatel-Lucents lump sum offer to former employees?. Alcatel-Lucent announced it was being purchased by Nokia. We have raised the question with Nokia. I have many questions. This is an extremely important decision and it requires careful consideration. To search for a combination of terms, use quotations and the & symbol. 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. xuSn0>DBH I$}C.SwB#s_u_0Bt lV:~D[S84eF}dKq_ ={K~922&1BOz:`. What You Can Do on the YBR Website If you are now receiving benefits: View your payment confirmations and history; [|c-Ur7fg Jlh>{.OQQ ,FuZr"\>`k_,&^[\z^ :;@. @V6l "{1 The CWA actuaries will review them to be sure that how they are being calculated is correct. 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). The lump-sum window runs from July 20 through September 25 and is completely voluntary. (And, you will understand why the company wants to end the pension promise because it was too generous.). 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. Skip up main content . The Columbus Dispatch Tuesday February 16, 2016 5:00 AM. 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. To consistently deliver news, research and analysis to the executives who manage the flow of funds in the institutional investment market. Alcatel-Lucent Old Scheme, London, completed a 100 million ($123.7 million) buy-in with Boarding Insurance Core. You point out that the pension trust is overfunded, and inflation has taken its toll, particularly on long-time retirees. a835gQ00]=8gVYROU4CCXghhr'Hcbo2.0k7.8-1pC*A#=W[K!F$R# 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. 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 If you roll to Fidelity, Vanguard, or T. Rowe Price they will handle both the investment and withdrawal planning for you. If you are not familiar with these principles, here are some quick tips. 2023 Communications Workers of America, AFL-CIO, CLC All Rights Reserved | Site Map | Privacy Policy. 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 I roll it over, say into an IRA, then the income becomes taxable. TAJ6LuR.u(NdLN_Ht)txF%K.)/|q1oO|uB+t{?ZQWH^ hsPZ=+,wz/ The National Association of Plan Advisors is a non-profit professional society. Privacy PolicyTerms of UseCopyright. for subscribing, you are all set for your money saving tips. 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. Sign up to receive Terrys free newsletter!! I am 64 yrs. A5) The new ruling by the IRS addresses discontinuing offering a lump sum buy out in certain circumstances going forward. 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. 0000017395 00000 n My son in Corby, your life and leadership have been an inspiration to us all. Jobs, Health Care & Retirement Security . Some eligible former employees also had the opportunity to change their existing annuity option to a different annuity option. Learn more here. For media inquiries, call CWA Communications at 202-434-1168 or emailnews@cwa-union.org. That is not necessarily true. 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. Careers at CWA. If you dont have a choice, but must take the lump sum offered, then I suggest rolling it to an IRA as described above. \?Q8za"mb CMz>GWcgeXSoGcg z!#}'`yOx"(:otxJ+;`Oc56d jnSf;Tm;H8b`i@5@(^hq;X8@d]EXr|w^>|K3Y6g9skZy&jteg}aBM\ju.Ks8XpOTi#Dl8gCx. 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. 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 . 0000008051 00000 n 0 Early this year Alcatel-Lucent announced they were investigating offering a voluntary lump sum buy-out of retiree pensions. In fact, at this years CWA T&T Leadership conference, our Research Department conducted a workshop on trends in Pension de-risking and bargaining.
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