alcatel lucent pension lump sum

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 . It is a sizable amount of money. Retirement Policy Proponent Sen. Ben Cardin Announces His Own Retirement, The Opportunity and Obligation in Small Plan Coverage: Hubs Joe DeNoyior, Expert Excoriated in Excessive Fee Dismissal. hb```\B cbM((-fu`` x';n\("v%u6~:8:F )T@TH HQAA|D,LG&[lnP%Vif^ %t,e`` %x( A1) Alcatel-Lucent is making available financial and tax education services through Deloitte, an objective, third party organization, at no cost to you. CWA is not in the position to interpret the companys offer and does not give out financial advice. (What you might be thinking is that an IRA is less secure from creditors than a pension payout, and that would be correct.) 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 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. Inflation And Pension Lump Sums: Timing Is Everything - Forbes You will receive your first bill in mid-November for your December coverage. I need to continue to withdraw money from my pension to live. 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. Even if they are, that does not mean you should take it. In addition, Nokia will most probably create a Nokia (USA) subsidiary which would be completely subject to US laws. It doesnt prevent a company from declaring bankruptcy. )@,F/3H4(-A &.}qp@|te\j|Y#|:Op:[JAa9@gTj-@J 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. To read about CWA Members, Leadership or Industries, visit ourAbout page. !J,3pNM,A|f5\mCl]) Pv&hhy 6u!2|)z9F_!lE^wxDaOo8^ %SE91q45),lEQN8:O $o2dhcflYK fgOlK: 2SYu*q"H3;Ydi37t6K^4nb8o?/zYK 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 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. The attachment labeled Lump Sum Program Announcement identifies who is and is not eligible. 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. Pros and Cons of Lump Sum Pension Payouts. 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. 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 offer, called the Alcatel-Lucent Retiree Lump-Sum Window Program, formally began on July 20, 2015 and ended on September 25, 2015. Alcatel-Lucent Pension Lump Sum Buyout | Communications Workers of tS To: Formerly Represented Retirees of Alcatel-Lucent, Subject: Questions Regarding the Alcatel-Lucent Pension Lump Sum Buyout. 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 CWA has requested that ALU give us a complete accounting of how they are arriving at the lump sums (interest rates, mortality tables, etc.) 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. As we get more information, we will publish it on this site. Early this year Alcatel-Lucent announced they were investigating offering a voluntary lump sum buy-out of retiree pensions. 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. Alcatel-Lucent enters into second buy-in for U.K. pension plan 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. This is an extremely important decision and it requires careful consideration. 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. trailer A6) The new annuity is a recalculation, for certain individuals, of the old calculations and is still administered by the pension plan. The lump sum amount, if not invested, will hold me for 13 yrs. Former employee, ATT/Lucent/Alcatel-Lucent is offering a lump sum buyout of our pensions. 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.) 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. Currently IL does not charge on pension income? PDF Lucent Technologies Inc. Pension Plan Summary of Material Modifications hbbd```b``z "kd(d? What questions should I be asking? 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 you choose to do nothing, your current monthly pension payments will continue. In terms of the Nokia merger -- There is a fear since Nokia is a foreign company our pensions would no longer be protected. 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. To search specifically for more than one word, put the search term in quotation marks. Examples of those protections are: The Company may not retroactively reduce those benefits, once they are vested. Main Office For media inquiries, call CWA Communications at 202-434-1168 or emailnews@cwa-union.org. For Alcatel-Lucent's U.S. pension plans, the funding policy is to contribute amounts to the . Just go to www.immediateannuities.com, and insert your age, gender, state, and the lump sum amount you have to invest. 0000002947 00000 n 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. Examples of those protections are: The Company may not retroactively reduce those benefits, once they are vested. Early this year Alcatel-Lucent announced they were investigating offering a voluntary lump sum buy-out of retiree pensions. i receive a pension from alcatel-lucent. If you roll to Fidelity, Vanguard, or T. Rowe Price they will handle both the investment and withdrawal planning for you. *4w| sX8#.i_96"he@;(e[*'m'-Ksbzgh k@0n`76Cdi} fK0/h. {j 268 0 obj <> endobj I am 64 yrs. Two announcements have been made this year by Alcatel-Lucent and many of you might think they are connected. 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. Alcatel-Lucent Retiree Lump Sum Window Benefits Center at (866) 617-7164. 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 One of them is offering lump sum buy-outs. You may also contact the Alcatel-Lucent Retiree Lump Sum Window Benefits Center at (866) 617-7164. 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. Q2) Do I have to take this lump sum buyout offer? Leadership. web design and development by new target, inc. 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. you the lump-sum payment. I have many questions. 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. Alcatel-Lucent Retiree Pensions - CWA 4900 I have many questions. A lump sum pension distribution offers the flexibility of being able to spend or invest your retirement savings any way you see fit. (And, you will understand why the company wants to end the pension promise because it was too generous.). Alcatel-Lucent also recommends recipients of the offer consult with their personal financial planner and/or tax advisor before making a decision. 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 Pension Protection Act helps to ensure the plan is appropriately funded. ~n]A9iRD wkvU@HB8E8JKkt>:O) 0 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. Hello Terry, 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. 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. More on Alcatel-Lucent retiree and pension issues and the acquisition by Nokia. 0000008051 00000 n New York, NY 10017-4036, Chicago Office 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 PDF Summary of Material Modifications Alcatel-Lucent Retirement Income Plan To do so, however, the employer must prove to a bankruptcy court or to the PBGC . In fact these two announcements are not connected. old, single, working fulltime, and in great health (knock on wood). xoH-Ge/+Uj%_lQ8B\R,Nk;Od.''M[fy%'mNd/i(-*i_EvS4H.fx3Vpe Following are the questions, with the answers, that we have received to date. endstream endobj startxref To read about CWA Members, Leadership or Industries, visit ourAbout page. 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. 0000014929 00000 n Some former employees might also have the opportunity to change their current annuity option to a different annuity form.