Alcatel-Lucent Old Scheme, London, completed a 100 million ($123.7 million) buy-in with Boarding Insurance Core. 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. 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. New York, NY 10017-4036, Chicago Office For Alcatel-Lucent's U.S. pension plans, the funding policy is to contribute amounts to the . One of them is offering lump sum buy-outs. Last week retirees received the first official notice of the lump sum offering. I have to decide by Sept. 11, 2015. <]>> 2023 Communications Workers of America, AFL-CIO, CLC All Rights Reserved | Site Map | Privacy Policy. IF the company decided to terminate the plan they would have to do it under government guidelines. Early this year Alcatel-Lucent announced they were investigating offering a voluntary lump sum buy-out of retiree pensions. startxref i received an offer for a lump sum payout based on the incorrect monthly pension. The Lucent Retirees Message Board-Transfer of pension fund from One of them is offering lump sum buy-outs. To consistently deliver news, research and analysis to the executives who manage the flow of funds in the institutional investment market. 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. 0000008372 00000 n TAJ6LuR.u(NdLN_Ht)txF%K.)/|q1oO|uB+t{?ZQWH^ hsPZ=+,wz/ Questions Regarding the Alcatel-Lucent Pension Lump Sum Buyout. The attached information (cover letterprogram announcementFTE Guide) will be mailed by Alcatel-Lucent to eligible Plan participants beginning tomorrow, Friday, June 26, 2015. 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. 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. Sell Your Pension & Retirement Plan for a Cash Lump Sum! 0000002947 00000 n Alcatel-Lucent Pension Lump Sum Buyout | Communications Workers of endstream endobj startxref The lump-sum window runs from July 20 through September 25 and is completely voluntary. 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. Case of the Week: Alcatel-Lucent's Lump-Sum Offer 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. Last week retirees received the first official notice of the lump sum offering. 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 You DO NOT have to accept this offer. Q1) Where can I get more information about this offer? More on Alcatel-Lucent retiree and pension issues and the acquisition by Nokia. The Columbus Dispatch Tuesday February 16, 2016 5:00 AM. Skip up main content . As we get more information, we will publish it on this site. History. Q2) Do I have to take this lump sum buyout offer? I am 64 yrs. A3) The language on page 10 is standard language. trailer Alcatel-Lucent plans voluntary lump-sum offer in 2015 PDF Summary of Material Modifications Alcatel-Lucent Retirement Income Plan And it's true that one dollar in 1990 purchasing power requires $2.73 today. hkkG@$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# Recipients have the option to do nothing and will continue to receive their current monthly annuity payments. 0000011786 00000 n Types of Pension Payouts: Lump Sum vs. Monthly - SmartAsset These resources include group sessions, individual sessions and a Financial and Tax Education Tool. %%EOF Two announcements have been made this year by Alcatel-Lucent and many of you might think they are connected. The advisor asked: What are the details around Alcatel-Lucents lump sum offer to former employees?. She writes a weekly personal finance column syndicated in major newspapers by Tribune Content Agency. 0000014070 00000 n NRLN Lucent/Nokia Retirees Chapter endstream endobj 273 0 obj <>stream 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 Their answer is that there are no plans for a cost-of-living raise. %PDF-1.7 % 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 . So assuming that you are not going to be sued, this is strictly a financial planning question. In fact these two announcements are not connected. 0000017395 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.) We have raised the question with Nokia. 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 Lump Sum Pension Offer | Communications Workers of America 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). hbbd```b``A$Sd9&@A vX{> L Ne`8H3*00\?0 Z* Alcatel-Lucent plans voluntary lump-sum offer in 2015 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. The premium amount will still be based on what your current monthly pension amount is today. In fact these two announcements are not connected. 0000010715 00000 n Health & Safety Fact Sheets ; Legislation & Politics ; News & Events About 55,000 In addition, Nokia will most probably create a Nokia (USA) subsidiary which would be completely subject to US laws. Following are the questions, with the answers, that we have received to date. While a pension annuity offers a fixed monthly income, a. 0000001040 00000 n The lump sum amount, if not invested, will hold me for 13 yrs. What asset class is best for corporate plans' growth investments when using LDI? hbbd```b``z "kd(d? 17 24 Alcatel-Lucent announced it was being purchased by Nokia. Columbia Threadneedle Investments (Columbia Threadneedle) is the global brand name of the Columbia and Threadneedle group of companies. One more point, just because our pension are protected now, we should not assume it will always be this way. 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. |@5=Ni!_DKZ89_<9Fa0MU)C2:)}yH0u g>.]uj&G([mRgm=G-MA5@au%l :vz,!MM@\Torx9 d:'FK]M2| 0000008051 00000 n 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. 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.) 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). hb```\B cbM((-fu`` x';n\("v%u6~:8:F )T@TH HQAA|D,LG&[lnP%Vif^ %t,e`` %x( THIS PROGRAM IS STRICTLY VOLUNTARY! To do so, however, the employer must prove to a bankruptcy court or to the PBGC . 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 $22 million in lump sums to former employees, GAO report calls for more disclosure to participants in lump-sum offers, Alcatel-Lucent completes buy-in for U.K. pension fund, eyes full buyout, Nokia to merge its 401(k) plan into Alcatel-Lucent's offering, Alcatel-Lucent enters into second buy-in for U.K. pension plan. Alcatel-Lucent, Murray Hill, N.J., announced Friday it plans to extend an offer of an immediate lump-sum payment to about 32,000 retirees and former employees in its U.S. Inactive. It is a sizable amount of money. Privacy PolicyTerms of UseCopyright. I have many questions. A lump sum payout is the more exciting option of the two. Holy cow, Nevin, you wrote a white paper! Leadership. Alcatel-Lucent informed the CWA National yesterday that they intend to make available to certain former employees, surviving beneficiaries and alternate payees, who are currently receiving monthly pension payments from the Lucent Technologies Inc. Pension Plan (the Plan), a Lucent Retiree Lump Sum Window Program (the Program). 0 I need to continue to withdraw money from my pension to live. 40 0 obj <>stream Terry Savage is a nationally recognized expert on personal finance, the economy and the markets. That is not necessarily true. Copyright 2023by NAPA, Compliance Administrator (TPA) Evaluation. Vm}O%TimaUMG60)f 6(jvR NEZ;[R!m))62Kr)7;yPedf`zms How to Avoid Taxes on Lump Sum Pension Payout - SmartAsset You can avoid taxes on a lump sum by rolling it over into an individual retirement account (IRA) or another eligible retirement plan. 0000015024 00000 n "9:@$;dIs0&w@qY }*#l8l 0 For media inquiries, call CWA Communications at 202-434-1168 or emailnews@cwa-union.org. PBGC proposes pension plan risk-transfer disclosure requirement, Ford pension plan funding holds steady in 2014, COPYRIGHT 2023 BUSINESS INSURANCE HOLDINGS. The National Association of Plan Advisors is a non-profit professional society. But keep in mind that a lump sum pension payout makes it easier to overspend in retirement. 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 0000007666 00000 n Synopsis of Material Modifications Alcatel-Lucent Retirement . 0000002392 00000 n xref 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. Careers at CWA. endstream endobj 548 0 obj <>stream Annuity experiences with Lump Sum - The Lucent Retirees Message Board 0000007454 00000 n I'd point out however that not all wobble stools are bad. sw Case of the Week: Plan Establishment and Compensation, Case of the Week: Faulty Form 5500 Filings and Reasonable Cause, BREAKING NEWS: Announcing the 2022 NAPA Top DC Advisor Teams, Breaking News: Biden Vetoes Congressional Resolution Blocking ESG Rule, Jerry Schlichter and Tom Clark Fiduciary Litigation Debate: DC Pension Geeks Podcast, Brian Graff Has a Stark Warning for Advisors: NAPA 401(k) Summit, 401(k)s Increasingly Under Attack in Wake of SECURE 2.0 Passage. Get Email Updates; Receive Text Alerts; Detect Your Local; Search; Services Laborer of Worldwide . r?Yw-g{A8se? Jx^m!xDC8p:PI((`![G EkrQXADX Alcatel-Lucent announced it was being purchased by Nokia. Eligible former employees are NOT required to make any changes to how or when they receive their Plan benefits. 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 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. 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 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.) 0000014974 00000 n xoH-Ge/+Uj%_lQ8B\R,Nk;Od.''M[fy%'mNd/i(-*i_EvS4H.fx3Vpe The lump-sum window runs from July 20 through September 25 and is completely voluntary. 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. HWmkF}J\l|MiJ(R~H'g You have until September to decide and you should use the time to consult with someone who can review your individual situation. %%EOF 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 My son in Corby, your life and leadership have been an inspiration to us all. 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 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. 0000000016 00000 n Over the course of the last year the IRS . Again, this is an extremely important decision and it requires careful consideration. BUT, if you want some certainty about income, then you might take a portion of the money and buy one of those immediate annuities inside your IRA. 0000002597 00000 n 0000009608 00000 n Quantifying sustainability the numbers, the data, and the people, Valuing Banks: Hidden Losses Versus Assets, Research for Institutional Money Management, Global Fixed Income: Volatility and Uncertainty Here to Stay, For institutional investors, ETFs can make meeting liquidity needs easier, Gold: the most effective commodity investment, 2021 Investment Outlook | Investing Beyond the Pandemic: A Reset for Portfolios, Ten ways retirement plan professionals add value to plan sponsors.
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