685 Third Avenue 284 0 obj <>/Filter/FlateDecode/ID[<401FD2CD3C4E2E4F956EAD5ECE542FCA><5B6DADCB6C7B5D49B41567324319F557>]/Index[268 30]/Info 267 0 R/Length 90/Prev 182067/Root 269 0 R/Size 298/Type/XRef/W[1 3 1]>>stream Or you could wait a few years to buy an. 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. Can the company terminate the pension plan? You have until September to decide and you should use the time to consult with someone who can review your individual situation. for subscribing, you are all set for your money saving tips. 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. endstream endobj 269 0 obj <>/Metadata 17 0 R/Pages 266 0 R/StructTreeRoot 32 0 R/Type/Catalog>> endobj 270 0 obj <>/MediaBox[0 0 612 792]/Parent 266 0 R/Resources<>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI]>>/Rotate 0/StructParents 0/Tabs/S/Type/Page>> endobj 271 0 obj <>stream 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.) 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 You Can Do on the YBR Website If you are now receiving benefits: View your payment confirmations and history; One of them is offering lump sum buy-outs. In terms of the Nokia merger There is a fear since Nokia is a foreign company our pensions would no longer be protected. 569 0 obj <>stream 0000001040 00000 n 2015 Columbia Management Investment Advisers, LLC. 0000000016 00000 n Q1) Where can I get more information about this offer? Please review the attached documents for complete information regarding this Program. 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. 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. endstream endobj 548 0 obj <>stream Choose your news we will deliver. %%EOF Health & Safety Fact Sheets ; Legislation & Politics ; News & Events I need to continue to withdraw money from my pension to live. 0 Main Office Suite 3200 Rob Kozlowski writes for Pensions & Investments, a sister publication of Business Insurance. Recipients have the option to do nothing and will continue to receive their current monthly annuity payments. After all, getting a huge influx of cash into your account upon retirement would make anyone jump for joy. Currently IL does not charge on pension income? 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. Case of the Week: Do Roth Recharacterizations Still Exist? sure enough, the lack of stability does bring a certain focus - which, to your point, can be Great article. Two announcements have been made this year by Alcatel-Lucent and many of you might think they are connected. Biggest Lucent Pension Drop in a Generation. hbbd```b``z "kd(d? For example, hurricane & loss. *4w| sX8#.i_96"he@;(e[*'m'-Ksbzgh k@0n`76Cdi} fK0/h. {j My son in Corby, your life and leadership have been an inspiration to us all. Sign up and get the best of News delivered straight to your email inbox, free of charge. If the lump sum is not anywhere near enough to generate the same monthly income as your pension, then if given the choice you will want to stick with the pension promise. Any money left over in the fund the company would have to pay a penalty tax on. THIS PROGRAM IS STRICTLY VOLUNTARY! One more point, just because our pension are protected now, we should not assume it will always be this way. L Ne`8H3*00\?0 Z* 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. 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. startxref The CWA actuaries will review them to be sure that how they are being calculated is correct. Early this year Alcatel-Lucent announced they were investigating offering a voluntary lump sum buy-out of retiree pensions. [|c-Ur7fg Jlh>{.OQQ ,FuZr"\>`k_,&^[\z^ :;@. @V6l "{1 0000001958 00000 n It is a sizable amount of money. 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. In Column D, at your life. The National Association of Plan Advisors is a non-profit professional society. at the current rate of yearly allocations given by the employer. A recent call with a financial advisor in California is representative of a common question related to pension de-risking and lump sums. Pros and Cons of Lump Sum Pension Payouts. 268 0 obj <> endobj Careers at CWA. Skip up main content . Early this year Alcatel-Lucent announced they were investigating offering a voluntary lump sum buy-out of retiree pensions. Just go to www.immediateannuities.com, and insert your age, gender, state, and the lump sum amount you have to invest. Recipients have the option to do nothing and will continue to receive their current monthly annuity payments. Your guidance is very much appreciated. xref \?Q8za"mb CMz>GWcgeXSoGcg z!#}'`yOx"(:otxJ+;`Oc56d jnSf;Tm;H8b`i@5@(^hq;X8@d]EXr|w^>|K3Y6g9skZy&jteg}aBM\ju.Ks8XpOTi#Dl8gCx. You will see offerings frm major insurance companies giving you a monthly payout. 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 . 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 DO NOT have to accept this offer. View all Financial Planning / Retirement questions. Menu burger Close thin Facebook Twitter Google plus Linked in Reddit Email arrow-right-sm arrow-right Loading Home Buying Calculators You may also contact the Alcatel-Lucent Retiree Lump Sum Window Benefits Center at (866) 617-7164. 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. This means that there are specific guidelines that must be followed under federal law. 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 Alcatel-Lucent Old Scheme, London, completed a 100 million ($123.7 million) buy-in with Boarding Insurance Core. All of this is costly to the company. !J,3pNM,A|f5\mCl]) Pv&hhy 6u!2|)z9F_!lE^wxDaOo8^ %SE91q45),lEQN8:O $o2dhcflYK fgOlK: 2SYu*q"H3;Ydi37t6K^4nb8o?/zYK 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. It is a sizable amount of money. Used with permission. Learn more here. 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.) 0 While a pension annuity offers a fixed monthly income, a. Kh#3w3g@|9%lQ8zRO 0vmb|@f)4|b;'.o04}* >~A=(zZm/y]?E}r*e{,5i03=H9`}p 0cg atZ2$4^a1'J>gfr~0K2]3kQ^E\V9aUYp0NjUDFL1`8K^{q "]A Aa>&.cHeWW1B1Q`gT$a8XFm. 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 Examples of those protections are: The Company may not retroactively reduce those benefits, once they are vested. History. 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). Illinois DOES NOT currently tax IRA withdrawals. The lump-sum window runs from July 20 through September 25 and is completely voluntary. Over the course of the last year the IRS . But keep in mind that a lump sum pension payout makes it easier to overspend in retirement. This will limit your search to that combination of words. If you dont have a choice, but must take the lump sum offered, then I suggest rolling it to an IRA as described above. To: Formerly Represented Retirees of Alcatel-Lucent, Subject: Questions Regarding the Alcatel-Lucent Pension Lump Sum Buyout. Their answer is that there are no plans for a cost-of-living raise. In fact these two announcements are not connected. Tenth Floor 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. 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. 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. 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 0000012893 00000 n 0000007454 00000 n We have raised the question with Nokia. endstream endobj 272 0 obj <>stream Currently the LTPP is funded at approximately 149%. To read about CWA Members, Leadership or Industries, visit ourAbout page. In fact, at this years CWA T&T Leadership conference, our Research Department conducted a workshop on trends in Pension de-risking and bargaining. Eligible former employees are NOT required to make any changes to how or when they receive their Plan benefits. The Program is not being offered to everyone. The lump-sum window runs from July 20 through September 25 and is completely voluntary. To search for a combination of terms, use quotations and the & symbol. For media inquiries, call CWA Communications at 202-434-1168 or emailnews@cwa-union.org. Traditionally, when interest rates rise by 1% the amount in an Lucent employee's lump-sum will drop by 8 - 12%. 0000011786 00000 n 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). (And, you will understand why the company wants to end the pension promise because it was too generous.). old, single, working fulltime, and in great health (knock on wood). Privacy PolicyTerms of UseCopyright. 2023 Communications Workers of America, AFL-CIO, CLC All Rights Reserved | Site Map | Privacy Policy. hbbd```b``A$Sd9&@A vX{> Jobs, Health Care & Retirement Security . Therefore, the company cannot just take money from the pension plan and use it for other things. 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. In addition, Nokia will most probably create a Nokia (USA) subsidiary which would be completely subject to US laws. 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. BIs Article search uses Boolean search capabilities. 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. "9:@$;dIs0&w@qY }*#l8l 0 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. 0000022178 00000 n 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. In fact Alcatel-Lucent was a foreign company and they could not take our pension funds. If you choose to do nothing, your current monthly pension payments will continue. A2) This offer is strictly voluntary. Today, the pension plan is covered by ERISA and is protected by the Pension Benefit Guaranty Corporation (PBGC). old, single, working fulltime, and in great health (knock on wood). Thank y. Terry Says: Well, first of all, you have one fact wrong. 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. 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 . hb```\B cbM((-fu`` x';n\("v%u6~:8:F )T@TH HQAA|D,LG&[lnP%Vif^ %t,e`` %x( A schedule of those sessions is in the Financial and Tax Education Guide booklet provided in the program announcement package. 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. The lump sum amount, if not invested, will hold me for 13 yrs. That will get you a guaranteed stream of (fully taxable) income for as long as you live. For media inquiries, call CWA Communications at 202-434-1168 or emailnews@cwa-union.org. To read about CWA Members, Leadership or Industries, visit ourAbout page. 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. 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). hkkG@$fg.e5$-ZRY+u}3+)Jb5j?Bs33g0.lDEPO"$LRBQB{L2BgB@GyNyU/^mDJ$.nyw'(FyY_1JNb+vFcq+3r,k5>k9]TF5Fr ov+%]lnJyZCm;[yw9{Zy zv# 0000001121 00000 n i received an offer for a lump sum payout based on the incorrect monthly pension. A4) What page 15 of the Financial and Tax book is referring to is that if Alcatel-Lucent declares bankruptcy and does not have enough money to cover the liabilities of the plan the PBGC would take over the plan. Synopsis of Material Modifications Alcatel-Lucent Retirement . 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. One of them is offering lump sum buy-outs. (What you might be thinking is that an IRA is less secure from creditors than a pension payout, and that would be correct.) hmk0"tzc7hh:(}&5se(|EV i"0W-kb@@.P|,rQfd\e.9thw)SV"\N2,]Ew9gmP?e? A1) Alcatel-Lucent is making available financial and tax education services through Deloitte, an objective, third party organization, at no cost to you. Everyones situation is different and unique to them. 0000014974 00000 n 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. It doesnt prevent a company from declaring bankruptcy. In fact these two announcements are not connected. To read about CWA Members, Leadership or Industries, visit ourAbout page.

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