i received an offer for a lump sum payout based on the incorrect monthly pension. Thank y. Terry Says: Well, first of all, you have one fact wrong. 8bOM4JDEEE3`%y1OSwR;jysrU ;(SRg3,}tc qR{SeL1E9im|6';Ye]DHH. Examples of those protections are: The Company may not retroactively reduce those benefits, once they are vested. 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. The premium amount will still be based on what your current monthly pension amount is today. [|c-Ur7fg Jlh>{.OQQ ,FuZr"\>`k_,&^[\z^ :;@. @V6l "{1 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. Learn more here. If you roll to Fidelity, Vanguard, or T. Rowe Price they will handle both the investment and withdrawal planning for you. 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. To read about CWA Members, Leadership or Industries, visit ourAbout page. That is not necessarily true. Careers at CWA. I have to decide by Sept. 11, 2015. hbbd```b``A$Sd9&@A vX{> for subscribing, you are all set for your money saving tips. you the lump-sum payment. <]>> Even if they are, that does not mean you should take it. XWyTfnzp@EA0DEqD" Jobs, Health Care & Retirement Security . Q3) Page 10 of the Alcatel-Lucent Retiree Lump Sum Window booklet says the company has rights to terminate either plan, etc. I need to continue to withdraw money from my pension to live. 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. As we get more information, we will publish it on this site. Questions Regarding the Alcatel-Lucent Pension Lump Sum Buyout. 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.) You may also contact the Alcatel-Lucent Retiree Lump Sum Window Benefits Center at (866) 617-7164. Holy cow, Nevin, you wrote a white paper! Can the company terminate the pension plan? Skip up main content . Call 1-888-232-4111 and select "Retirement and Investments", then select "Pension". If the plan is not fully-funded, the employer may apply for a distress termination if the employer is in financial distress. In fact, at this years CWA T&T Leadership conference, our Research Department conducted a workshop on trends in Pension de-risking and bargaining. This means that there are specific guidelines that must be followed under federal law. Any money left over in the fund the company would have to pay a penalty tax on. 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. 2015 Columbia Management Investment Advisers, LLC. 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). Pension Plans offer lump sums periodically, but typically change once a year. Tenth Floor Alcatel-Lucent also recommends recipients of the offer consult with their personal financial planner and/or tax advisor before making a decision. Alcatel-Lucent also recommends recipients of the offer consult with their personal financial planner and/or taxes advisor before making a decision. 0000014974 00000 n 544 0 obj <> endobj 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. 0000014929 00000 n Alcatel-Lucent announced it was being purchased by Nokia. Some former employees might also have the opportunity to change their current annuity option to a different annuity form. If I do decide to take it, what are my investment options to continue to withdraw on a monthly or yearly basis? 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 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). 0000012893 00000 n Leadership. 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. You have until September to decide and you should use the time to consult with someone who can review your individual situation. The attachment labeled Lump Sum Program Announcement identifies who is and is not eligible. endstream endobj startxref 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. A2) This offer is strictly voluntary. 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"). Q1) Where can I get more information about this offer? sure enough, the lack of stability does bring a certain focus - which, to your point, can be Great article. 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. Biggest Lucent Pension Drop in a Generation. Your guidance is very much appreciated. Alcatel-Lucent plans to make a voluntary lump-sum offer in 2015 to 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 . I need to continue to withdraw money from my pension to live. 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. Choose your news we will deliver. The Columbus Dispatch Tuesday February 16, 2016 5:00 AM. trailer tS Rob Kozlowski writes for Pensions & Investments, a sister publication of Business Insurance. A schedule of those sessions is in the Financial and Tax Education Guide booklet provided in the program announcement package. To search specifically for more than one word, put the search term in quotation marks. Even if they are, that does not mean you should take it. 0 A lump sum pension distribution offers the flexibility of being able to spend or invest your retirement savings any way you see fit. The lump-sum window runs from July 20 through September 25 and is completely voluntary. they have known this for over 30 days and i am not making any headway with getting it corrected. Recipients have the option to do nothing and will continue to receive their current monthly annuity payments. If you choose to do nothing, your current monthly pension payments will continue. 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. I have many questions. My son in Corby, your life and leadership have been an inspiration to us all. To consistently deliver news, research and analysis to the executives who manage the flow of funds in the institutional investment market. 17 0 obj <> endobj a835gQ00]=8gVYROU4CCXghhr'Hcbo2.0k7.8-1pC*A#=W[K!F$R# 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. Legislation and Politics. Today, the pension plan is covered by ERISA and is protected by the Pension Benefit Guaranty Corporation (PBGC). endstream endobj 548 0 obj <>stream To read about CWA Members, Leadership or Industries, visit ourAbout page. old, single, working fulltime, and in great health (knock on wood). To search for a combination of terms, use quotations and the & symbol. 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 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. A6) The new annuity is a recalculation, for certain individuals, of the old calculations and is still administered by the pension plan. 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. The lump sum amount, if not invested, will hold me for 13 yrs. Over the course of the last year the IRS . For Alcatel-Lucent's U.S. pension plans, the funding policy is to contribute amounts to the . A3) The language on page 10 is standard language. 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 Pension Protection Act helps to ensure the plan is appropriately funded. You have until September to decide and you should use the time to consult with someone who can review your individual situation. In addition, Nokia will most probably create a Nokia (USA) subsidiary which would be completely subject to US laws. 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. 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 . About 55,000 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 attached information (cover letterprogram announcementFTE Guide) will be mailed by Alcatel-Lucent to eligible Plan participants beginning tomorrow, Friday, June 26, 2015. 0000014070 00000 n It doesnt prevent a company from declaring bankruptcy. Q2) Do I have to take this lump sum buyout offer? 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. One of them is offering lump sum buy-outs. Recipients have the option to do nothing and will continue to receive their current monthly annuity payments. But even if you follow the recommended plan,there will be no guarantees that the payouts will last your lifetime as would be the case with a pension. 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.) To read about CWA Members, Leadership or Industries, visit ourAbout page. 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. Bottom Line: Rising rates reduce lump sums. The Program Window is only in effect beginning July 20, 2015 and ends at 11:59 p.m. (EDT) on September 25, 2015. 0000007666 00000 n The National Association of Plan Advisors is a non-profit professional society. hbbd```b``z "kd(d? It is a sizable amount of money. For media inquiries, call CWA Communications at 202-434-1168 or emailnews@cwa-union.org. A1) Alcatel-Lucent is making available financial and tax education services through Deloitte, an objective, third party organization, at no cost to you. IF the company decided to terminate the plan they would have to do it under government guidelines. 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. i receive a pension from alcatel-lucent. 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. 0 In fact these two announcements are not connected. Former employee, ATT/Lucent/Alcatel-Lucent is offering a lump sum buyout of our pensions. 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. %%EOF 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. One of them is offering lump sum buy-outs. TAJ6LuR.u(NdLN_Ht)txF%K.)/|q1oO|uB+t{?ZQWH^ hsPZ=+,wz/

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