L Ne`8H3*00\?0 Z* [|c-Ur7fg Jlh>{.OQQ ,FuZr"\>`k_,&^[\z^ :;@. @V6l "{1 Tenth Floor 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 Holy cow, Nevin, you wrote a white paper! Despite a July 9 announcement that the IRS intends to eliminate lump-sum windows for retirees already receiving annuity payments, the Alcatel-Lucent lump-sum window is allowed to proceed under a special prenotice grandfather clause for programs announced prior to July 9. A1) Alcatel-Lucent is making available financial and tax education services through Deloitte, an objective, third party organization, at no cost to you. 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. 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. A2) This offer is strictly voluntary. Please review the attached documents for complete information regarding this Program. hb```\B cbM((-fu`` x';n\("v%u6~:8:F )T@TH HQAA|D,LG&[lnP%Vif^ %t,e`` %x( Eligible former employees are NOT required to make any changes to how or when they receive their Plan benefits. They could do that by purchasing annuities through an insurance company. The premium amount will still be based on what your current monthly pension amount is today. 0000000016 00000 n The advisor asked: What are the details around Alcatel-Lucents lump sum offer to former employees?. I Receive a Pension From Alcatel-lucent. Received a Package About 55,000 It doesnt prevent a company from declaring bankruptcy. I am 64 yrs. old, single, working fulltime, and in great health (knock on wood). 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 . 0 0000002392 00000 n It is a sizable amount of money. Thank y. Terry Says: Well, first of all, you have one fact wrong. For media inquiries, call CWA Communications at 202-434-1168 or emailnews@cwa-union.org. This means that there are specific guidelines that must be followed under federal law. If I do decide to take it, what are my investment options to continue to withdraw on a monthly or yearly basis? Early this year Alcatel-Lucent announced they were investigating offering a voluntary lump sum buy-out of retiree pensions. Alcatel-Lucent Pension Lump Sum Buyout | Communications Workers of To read about CWA Members, Leadership or Industries, visit ourAbout page. You can make some investments that are likely to generate growth and income to support your retirement needs. A5) The new ruling by the IRS addresses discontinuing offering a lump sum buy out in certain circumstances going forward. %PDF-1.4 % To consistently deliver news, research and analysis to the executives who manage the flow of funds in the institutional investment market. 0000007666 00000 n If the plan is not fully-funded, the employer may apply for a distress termination if the employer is in financial distress. Last week retirees received the first official notice of the lump sum offering. 0000011786 00000 n If you dont have a choice, but must take the lump sum offered, then I suggest rolling it to an IRA as described above. What You Can Do on the YBR Website If you are now receiving benefits: View your payment confirmations and history; Questions Regarding the Alcatel-Lucent Pension Lump Sum Buyout. !J,3pNM,A|f5\mCl]) Pv&hhy 6u!2|)z9F_!lE^wxDaOo8^ %SE91q45),lEQN8:O $o2dhcflYK fgOlK: 2SYu*q"H3;Ydi37t6K^4nb8o?/zYK HWmkF}J\l|MiJ(R~H'gC2:)}yH0u g>.]uj&G([mRgm=G-MA5@au%l :vz,!MM@\Torx9 d:'FK]M2| A lump sum pension distribution offers the flexibility of being able to spend or invest your retirement savings any way you see fit. Alcatel-Lucent announced it was being purchased by Nokia. 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. Following are the questions, with the answers, that we have received to date. I'd point out however that not all wobble stools are bad. old, single, working fulltime, and in great health (knock on wood). Choose your news we will deliver. 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. Sell Your Pension & Retirement Plan for a Cash Lump Sum! Menu burger Close thin Facebook Twitter Google plus Linked in Reddit Email arrow-right-sm arrow-right Loading Home Buying Calculators 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-time, opportunity to convert their current monthly pension payment to a lump-sum payment (or, for some individuals, to change their pension payment option). Used with permission. Examples of those protections are: The Company may not retroactively reduce those benefits, once they are vested. 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 Nokia to merge its 401(k) plan into Alcatel-Lucent's offering Examples of those protections are: The Company may not retroactively reduce those benefits, once they are vested. New York, NY 10017-4036, Chicago Office J m^?bSL&MM>^S!OYuFG]2_w*'~vmi"chV6{8E&`(72jje&}\MlKM+TLigQC42BIj4^C};)k"C+"?j^SDE5[k]83/pivCNSa+| $ Everyones situation is different and unique to them. Currently IL does not charge on pension income? 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. Therefore, the company cannot just take money from the pension plan and use it for other things. 2023 Communications Workers of America, AFL-CIO, CLC All Rights Reserved | Site Map | Privacy Policy. 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. You may also contact the Nokia Benefits Resource Center. In fact these two announcements are not connected. 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. In addition, Nokia will most probably create a Nokia (USA) subsidiary which would be completely subject to US laws. i received an offer for a lump sum payout based on the incorrect monthly pension. Q1) Where can I get more information about this offer? Careers at CWA. For media inquiries, call CWA Communications at 202-434-1168 or emailnews@cwa-union.org. 0000007454 00000 n One more point, just because our pension are protected now, we should not assume it will always be this way. 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. The attachment labeled Lump Sum Program Announcement identifies who is and is not eligible. 0000001121 00000 n History. Former employee, ATT/Lucent/Alcatel-Lucent is offering a lump sum buyout of our pensions. Rob Kozlowski writes for Pensions & Investments, a sister publication of Business Insurance. 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 to decide by Sept. 11, 2015. What questions should I be asking? IF the company decided to terminate the plan they would have to do it under government guidelines. Biggest Lucent Pension Drop in a Generation. endstream endobj startxref 0000010715 00000 n 0000012893 00000 n 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. 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 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. xb```b``d`e`y |,@Q9F90*oZWcS;ik5H0frrx@,V"a"C8jqP You may also contact the Alcatel-Lucent Retiree Lump Sum Window Benefits Center at (866) 617-7164. 17 24 Terry Savage is a nationally recognized expert on personal finance, the economy and the markets. Plan assets are protected from being used for purposes other than providing benefits (or reasonable administrative expenses). Case of the Week: Alcatel-Lucent's Lump-Sum Offer Alcatel-Lucent also recommends recipients of the offer consult with their personal financial planner and/or tax advisor before making a decision. "It is an excuse to put money into their underfunded plan . A recent call with a financial advisor in California is representative of a common question related to pension de-risking and lump sums. The CWA actuaries will review them to be sure that how they are being calculated is correct. 0000001958 00000 n 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 A3) The language on page 10 is standard language. If you choose to do nothing, your current monthly pension payments will continue. 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. (And, you will understand why the company wants to end the pension promise because it was too generous.). Alcatel-Lucent Lump Sum Pension Offer | Communications Workers of America Jobs, Health Care & Retirement Security . In fact Alcatel-Lucent was a foreign company and they could not take our pension funds. endstream endobj 273 0 obj <>stream The Pension Protection Act helps to ensure the plan is appropriately funded. And it's true that one dollar in 1990 purchasing power requires $2.73 today. Sign up to receive Terrys free newsletter!! Pension Plans offer lump sums periodically, but typically change once a year. A schedule of those sessions is in the Financial and Tax Education Guide booklet provided in the program announcement package. To read about CWA Members, Leadership or Industries, visit ourAbout page. 0000000776 00000 n 0000009608 00000 n PBGC proposes pension plan risk-transfer disclosure requirement, Ford pension plan funding holds steady in 2014, COPYRIGHT 2023 BUSINESS INSURANCE HOLDINGS. web design and development by new target, inc. xoH-Ge/+Uj%_lQ8B\R,Nk;Od.''M[fy%'mNd/i(-*i_EvS4H.fx3Vpe 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"). 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. 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). Copyright 2023by NAPA, Compliance Administrator (TPA) Evaluation. Health & Safety Fact Sheets ; Legislation & Politics ; News & Events More on Alcatel-Lucent Retiree and Pension Issues and the acquisition What about the Pension Protection Act? 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. We have raised the question with Nokia. Dossier of the Week: Alcatel-Lucent's Lump-Sum Offer I need to continue to withdraw money from my pension to live. 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). 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. 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. trailer 0000014974 00000 n BIs Article search uses Boolean search capabilities. 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. PDF Summary of Material Modifications Alcatel-Lucent Retirement Income Plan Lump-Sum vs. Regular Pension Payments: What's the Difference? Even if they are, that does not mean you should take it. PDF Annual Funding Notice Alcatel-Lucent Retirement Income Plan If you have further questions once you receive your package of materials, please contact the Alcatel-Lucent Retiree Lump Sum Window Benefits Center at (866) 617-7164. To: Formerly Represented Retirees of Alcatel-Lucent, Subject: Questions Regarding the Alcatel-Lucent Pension Lump Sum Buyout. 40 0 obj <>stream hmk0"tzc7hh:(}&5se(|EV i"0W-kb@@.P|,rQfd\e.9thw)SV"\N2,]Ew9gmP?e? A decision by telecom company Alcatel-Lucent to move $3 billion out of a well-funded pension fund for retired workers into a fund for managers has union leaders worried about the long-term stability of the retirees' fund. Everyones situation is different and unique to them. Cash Lump Sum Options for: Company Pension; Any State or Federal Government Pension; Military; Police and FIre Pension; Teacher Pension; Call Us Toll Free: 1-800-853-5640 to reach a representative who will discuss your lump sum pension payment and retirement annuity options with you. Because this offer was already approved and in the works it is NOT impacted by the ruling. Get Email Updates; Receive Text Alerts; Detect Your Local; Search; Services Laborer of Worldwide . The lump sum amount, if not invested, will hold me for 13 yrs. You have until September to decide and you should use the time to consult with someone who can review your individual situation. Alcatel-Lucent, Murray Hill, N.J., announced Friday it plans to extend an offer of an immediate lump-sum payment to about 32,000 retirees and former employees in its U.S. Inactive Occupational Pension Plan. Even if they are, that does not mean you should take it. Q2) Do I have to take this lump sum buyout offer? If you roll to Fidelity, Vanguard, or T. Rowe Price they will handle both the investment and withdrawal planning for you. After all, getting a huge influx of cash into your account upon retirement would make anyone jump for joy. 553 0 obj <>/Filter/FlateDecode/ID[<94B3386967048548A045BA5BD9299ADC><31856CD454ED2C479B066D538F2F01B1>]/Index[544 26]/Info 543 0 R/Length 70/Prev 342004/Root 545 0 R/Size 570/Type/XRef/W[1 3 1]>>stream That new car or luxurious vacation may not . hbbd```b``A$Sd9&@A vX{> "9:@$;dIs0&w@qY }*#l8l 0 As we get more information, we will publish it on this site. Just go to www.immediateannuities.com, and insert your age, gender, state, and the lump sum amount you have to invest. Some eligible former employees also had the opportunity to change their existing annuity option to a different annuity option. Over the course of the last year the IRS . Recipients have the option to do nothing and will continue to receive their current monthly annuity payments. 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. \?Q8za"mb CMz>GWcgeXSoGcg z!#}'`yOx"(:otxJ+;`Oc56d jnSf;Tm;H8b`i@5@(^hq;X8@d]EXr|w^>|K3Y6g9skZy&jteg}aBM\ju.Ks8XpOTi#Dl8gCx. Pension lump sum buyout - Terry Savage The materials contained herein are intended for instruction only and are not a substitute for professional advice.
Hospital Volunteer Opportunities Jacksonville, Fl,
Articles A
