alcatel lucent pension lump sum

Lucent? How to Navigate Pension Changes - The Retirement Group After all, getting a huge influx of cash into your account upon retirement would make anyone jump for joy. This is an extremely important decision and it requires careful consideration. To search for a combination of terms, use quotations and the & symbol. It is a sizable amount of money. Approximately 75,000 eligible former employees, surviving beneficiaries and alternate payees of Alcatel-Lucent have begun receiving formal lump-sum window notices. I have many questions. 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. In Column D, at your life. This offer, called the Alcatel-Lucent Retiree Lump-Sum Window Program, formally began on July 20, 2015 and ended on September 25, 2015. You will see offerings frm major insurance companies giving you a monthly payout. To do so, however, the employer must prove to a bankruptcy court or to the PBGC . This will limit your search to that combination of words. 0000015024 00000 n 0000001040 00000 n Any money left over in the fund the company would have to pay a penalty tax on. PDF Annual Funding Notice Alcatel-Lucent Retirement Income Plan 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. 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. 0000008372 00000 n 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 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. 0000015986 00000 n Or you could wait a few years to buy an. %PDF-1.7 % 0000009608 00000 n Q2) Do I have to take this lump sum buyout offer? How to Avoid Taxes on Lump Sum Pension Payout - SmartAsset You can avoid taxes on a lump sum by rolling it over into an individual retirement account (IRA) or another eligible retirement plan. You can have automatic monthly withdrawals, or take money out at any time. Should You Take Pension Payments or a Lump Sum? A How-To Guide 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 . Bottom Line: Rising rates reduce lump sums. 0000007666 00000 n Alcatel-Lucent plans voluntary lump-sum offer in 2015 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. View all Financial Planning / Retirement questions. 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. %PDF-1.4 % xref 0000008051 00000 n 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 Two announcements have been made this year by Alcatel-Lucent and many of you might think they are connected. 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). Some eligible former employees also had the opportunity to change their existing annuity option to a different annuity option. 3QxbOJZL3 i`/ 4(yKH.WT=\}LN8V^*~& Q4) Also on page 15 in the Financial & Tax booklet, provided by the company, it says if they go broke we get nothing in a pension. 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. More on Alcatel-Lucent retiree and pension issues and the acquisition by Nokia. 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. Thank y. Terry Says: Well, first of all, you have one fact wrong. 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 We have raised the question with Nokia. THIS PROGRAM IS STRICTLY VOLUNTARY! More on Alcatel-Lucent Retiree and Pension Issues and the acquisition As we get more information, we will publish it on this site. 685 Third Avenue You have until September to decide and you should use the time to consult with someone who can review your individual situation. If you choose to do nothing, your current monthly pension payments will continue. Q7) What happens to my healthcare if I take this lump sum buy out? Jobs, Health Care & Retirement Security . Last week retirees received the first official notice of the lump sum offering. XWyTfnzp@EA0DEqD" 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. 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 You may also contact the Alcatel-Lucent Retiree Lump Sum Window Benefits Center at (866) 617-7164. Early this year Alcatel-Lucent announced they were investigating offering a voluntary lump sum buy-out of retiree pensions. 0000007454 00000 n 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. 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. 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. 0000014974 00000 n 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. 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. 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). `lsIf8 y[e?f-IE2.H54&%6h2SQ HUE{RV3@@ startxref That is not necessarily true. "It is an excuse to put money into their underfunded plan . Legislation and Politics. (And, you will understand why the company wants to end the pension promise because it was too generous.). 569 0 obj <>stream 2023 Communications Workers of America, AFL-CIO, CLC All Rights Reserved | Site Map | Privacy Policy. The Program is not being offered to everyone. 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 Types of Pension Payouts: Lump Sum vs. Monthly - SmartAsset While a pension annuity offers a fixed monthly income, a. Alcatel-Lucent Retiree Lump Sum Window Benefits Center at (866) 617-7164. 0000022178 00000 n In fact Alcatel-Lucent was a foreign company and they could not take our pension funds. L Ne`8H3*00\?0 Z* And it's true that one dollar in 1990 purchasing power requires $2.73 today. Therefore, the company cannot just take money from the pension plan and use it for other things. Q1) Where can I get more information about this offer? 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. xb```b``d`e`y |,@Q9F90*oZWcS;ik5H0frrx@,V"a"C8jqP trailer In terms of the Nokia merger -- There is a fear since Nokia is a foreign company our pensions would no longer be protected. 0000012893 00000 n A recent call with a financial advisor in California is representative of a common question related to pension de-risking and lump sums. 40 0 obj <>stream 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 National Association of Plan Advisors is a non-profit professional society. 0 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. 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. Alcatel-Lucent Pension Lump Sum Buyout | Communications Workers of 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. The Columbus Dispatch Tuesday February 16, 2016 5:00 AM. 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. 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. Alcatel-Lucent Pension Lump Sum Buyout | Communications Workers of In fact, at this years CWA T&T Leadership conference, our Research Department conducted a workshop on trends in Pension de-risking and bargaining. New York, NY 10017-4036, Chicago Office 297 0 obj <>stream \?Q8za"mb CMz>GWcgeXSoGcg z!#}'`yOx"(:otxJ+;`Oc56d jnSf;Tm;H8b`i@5@(^hq;X8@d]EXr|w^>|K3Y6g9skZy&jteg}aBM\ju.Ks8XpOTi#Dl8gCx. endstream endobj 548 0 obj <>stream A2) This offer is strictly voluntary. <]>> Menu burger Close thin Facebook Twitter Google plus Linked in Reddit Email arrow-right-sm arrow-right Loading Home Buying Calculators 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. 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 lump-sum window runs from July 20 through September 25 and is completely voluntary. 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. Inflation And Pension Lump Sums: Timing Is Everything - Forbes hb```\B cbM((-fu`` x';n\("v%u6~:8:F )T@TH HQAA|D,LG&[lnP%Vif^ %t,e`` %x( 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 . Alcatel-Lucent Lump Sum Pension Offer | Communications Workers of America History. Suite 3200 0000002392 00000 n (What you might be thinking is that an IRA is less secure from creditors than a pension payout, and that would be correct.) The lump sum amount, if not invested, will hold me for 13 yrs. A lump sum pension distribution offers the flexibility of being able to spend or invest your retirement savings any way you see fit. 544 0 obj <> endobj 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. The materials contained herein are intended for instruction only and are not a substitute for professional advice. under the Plan to a one-time, lump-sum payment. A6) The new annuity is a recalculation, for certain individuals, of the old calculations and is still administered by the pension plan. 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. If you choose to do nothing, your current monthly pension payments will continue. Biggest Lucent Pension Drop in a Generation. Retirement Savings & Pension - BenefitAnswers Plus Recipients have the option to do nothing and will continue to receive their current monthly annuity payments. Last week retirees received the first official notice of the lump sum offering. ~n]A9iRD wkvU@HB8E8JKkt>:O) i receive a pension from alcatel-lucent. PDF Alcatel Data Networks Inc. Retirement Pension Plan - BenefitAnswers Plus The attached information (cover letterprogram announcementFTE Guide) will be mailed by Alcatel-Lucent to eligible Plan participants beginning tomorrow, Friday, June 26, 2015. 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. Main Office sw 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. NRLN Lucent/Nokia Retirees Chapter 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. Leadership. 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 A3) The language on page 10 is standard language. Alcatel-Lucent to expand lump-sum offer to 32,000 more participants Call 1-888-232-4111 and select "Retirement and Investments", then select "Pension". A lump sum payout is the more exciting option of the two. Figuring this out is very simple. The CWA actuaries will review them to be sure that how they are being calculated is correct. 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. Alcatel-Lucent plans voluntary lump-sum offer in 2015 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. Get access to the news, research and analysis of events affecting the retirement and institutional money management businesses from a worldwide network of reporters and editors. 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. 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. In fact these two announcements are not connected. Please review the attached documents for complete information regarding this Program. Annuity experiences with Lump Sum - The Lucent Retirees Message Board Holy cow, Nevin, you wrote a white paper! Q6) What company is the new annuity going to be with? If you are eligible for a lump sum, you may be able to get a significantly . To search specifically for more than one word, put the search term in quotation marks. Early this year Alcatel-Lucent announced they were investigating offering a voluntary lump sum buy-out of retiree pensions. 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. Everyones situation is different and unique to them. 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. Alcatel-Lucent announced it was being purchased by Nokia. All of this is costly to the company. endstream endobj startxref 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. That will get you a guaranteed stream of (fully taxable) income for as long as you live. 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. Advisor action items: Talk the your Alcatel-Lucent clients who may be affected. You may also contact the Alcatel-Lucent Retiree Lump Sum Window Benefits Center at (866) 617-7164. )@,F/3H4(-A &.}qp@|te\j|Y#|:Op:[JAa9@gTj-@J Hello Terry, So assuming that you are not going to be sued, this is strictly a financial planning question. hbbd```b``A$Sd9&@A vX{> Alcatel-Lucent enters into second buy-in for U.K. pension plan For specifics, click on the employer's name to see the company's press release, SEC filing, or news story announcing the change (some links may expire). Alcatel-Lucent announced it was being purchased by Nokia. You may also contact the Nokia Benefits Resource Center. When to Accept a Buyout | Kiplinger Following are the questions, with the answers, that we have received to date. About 55,000 I have many questions. In terms of the Nokia merger There is a fear since Nokia is a foreign company our pensions would no longer be protected. hkkG@$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# A2) This offer is strictly voluntary. 0000000776 00000 n PBGC proposes pension plan risk-transfer disclosure requirement, Ford pension plan funding holds steady in 2014, COPYRIGHT 2023 BUSINESS INSURANCE HOLDINGS. What questions should I be asking? Currently IL does not charge on pension income? hmk0"tzc7hh:(}&5se(|EV i"0W-kb@@.P|,rQfd\e.9thw)SV"\N2,]Ew9gmP?e?

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