That is not necessarily true. [|c-Ur7fg Jlh>{.OQQ ,FuZr"\>`k_,&^[\z^ :;@. @V6l "{1 0000002597 00000 n You DO NOT have to accept this offer. Any money left over in the fund the company would have to pay a penalty tax on. Please review the attached documents for complete information regarding this Program. You may also contact the Alcatel-Lucent Retiree Lump Sum Window Benefits Center at (866) 617-7164. they have known this for over 30 days and i am not making any headway with getting it corrected. 685 Third Avenue To do so, however, the employer must prove to a bankruptcy court or to the PBGC . Q6) What company is the new annuity going to be with? Alcatel-Lucent announced it was being purchased by Nokia. 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. J m^?bSL&MM>^S!OYuFG]2_w*'~vmi"chV6{8E&`(72jje&}\MlKM+TLigQC42BIj4^C};)k"C+"?j^SDE5[k]83/pivCNSa+| $ Examples of those protections are: The Company may not retroactively reduce those benefits, once they are vested. 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. 0000002392 00000 n 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. In fact, at this years CWA T&T Leadership conference, our Research Department conducted a workshop on trends in Pension de-risking and bargaining. 0000000016 00000 n 0000001121 00000 n sw Social Security Solvency: Is it Really That Bad? The attachment labeled Lump Sum Program Announcement identifies who is and is not eligible. under the Plan to a one-time, lump-sum payment. In fact these two announcements are not connected. 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. 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 TAJ6LuR.u(NdLN_Ht)txF%K.)/|q1oO|uB+t{?ZQWH^ hsPZ=+,wz/ endstream endobj 272 0 obj <>stream 3QxbOJZL3 i`/ 4(yKH.WT=\}LN8V^*~& The premium amount will still be based on what your current monthly pension amount is today. You DO NOT have to accept this offer. xuSn0>DBH I$}C.SwB#s_u_0Bt lV:~D[S84eF}dKq_ ={K~922&1BOz:`. `lsIf8 y[e?f-IE2.H54&%6h2SQ HUE{RV3@@ Suite 3200 For example, hurricane & loss. It doesnt prevent a company from declaring bankruptcy. Q5) Will the new IRS ruling on pensions affect our Lucent retirees taking this lump sum? One of them is offering lump sum buy-outs. For us that would be December 2, 2015, because the lump-sum payout from AL-LU is set for November 2, 2015 (and we can't change that date). at the current rate of yearly allocations given by the employer. 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"). HWmkF}J\l|MiJ(R~H'g![3(!yrqK.//n+BS2bj~BT g8neSlI9oC9/rgczB7e DC4eUS;,'uq_6#:87lS1YA(V[cEUXq#\"?v,|nSIE%v](4h vZJz'^ In fact these two announcements are not connected. More on Alcatel-Lucent retiree and pension issues and the acquisition by Nokia. 0000014070 00000 n 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. One more point, just because our pension are protected now, we should not assume it will always be this way. 0000015986 00000 n To consistently deliver news, research and analysis to the executives who manage the flow of funds in the institutional investment market. r?Yw-g{A8se? Jx^m!xDC8p:PI((`![G EkrQXADX The attached information (cover letterprogram announcementFTE Guide) will be mailed by Alcatel-Lucent to eligible Plan participants beginning tomorrow, Friday, June 26, 2015. You will receive your first bill in mid-November for your December coverage. As we get more information, we will publish it on this site. For media inquiries, call CWA Communications at 202-434-1168 or emailnews@cwa-union.org. 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. 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 Alcatel-Lucent announced it was being purchased by Nokia. 0000001515 00000 n This will limit your search to that combination of words. For media inquiries, call CWA Communications at 202-434-1168 or emailnews@cwa-union.org. Former employee, ATT/Lucent/Alcatel-Lucent is offering a lump sum buyout of our pensions. 569 0 obj <>stream To search for a combination of terms, use quotations and the & symbol. 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. hmk0"tzc7hh:(}&5se(|EV i"0W-kb@@.P|,rQfd\e.9thw)SV"\N2,]Ew9gmP?e? 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. The lump sum amount, if not invested, will hold me for 13 yrs. They could do that by purchasing annuities through an insurance company. You have until September to decide and you should use the time to consult with someone who can review your individual situation. xb```b``d`e`y |,@Q9F90*oZWcS;ik5H0frrx@,V"a"C8jqP 268 0 obj <> endobj 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. )@,F/3H4(-A &.}qp@|te\j|Y#|:Op:[JAa9@gTj-@J 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. 0000012893 00000 n Traditionally, when interest rates rise by 1% the amount in an Lucent employee's lump-sum will drop by 8 - 12%. web design and development by new target, inc. Last week retirees received the first official notice of the lump sum offering. 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. 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. 2023 Communications Workers of America, AFL-CIO, CLC All Rights Reserved | Site Map | Privacy Policy. %PDF-1.5 % It is a sizable amount of money. Hello Terry, 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. Plan assets are protected from being used for purposes other than providing benefits (or reasonable administrative expenses). If you dont have a choice, but must take the lump sum offered, then I suggest rolling it to an IRA as described above. 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: Do Roth Recharacterizations Still Exist? What asset class is best for corporate plans' growth investments when using LDI? 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. 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.) Plan assets are protected from being used for purposes other than providing benefits (or reasonable administrative expenses). After all, getting a huge influx of cash into your account upon retirement would make anyone jump for joy. Alcatel-Lucent announced it was being purchased by Nokia. History. 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. 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. 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. 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). It is a sizable amount of money. A5) The new ruling by the IRS addresses discontinuing offering a lump sum buy out in certain circumstances going forward. Alcatel-Lucent also recommends recipients of the offer consult with their personal financial planner and/or tax advisor before making a decision. Q1) Where can I get more information about this offer? A recent call with a financial advisor in California is representative of a common question related to pension de-risking and lump sums. The Pension Protection Act helps to ensure the plan is appropriately funded. 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 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. Questions Regarding the Alcatel-Lucent Pension Lump Sum Buyout. I have to decide by Sept. 11, 2015. 17 24 Alcatel-Lucent also recommends recipients of the offer consult with their personal financial planner and/or taxes advisor before making a decision. Q3) Page 10 of the Alcatel-Lucent Retiree Lump Sum Window booklet says the company has rights to terminate either plan, etc. 0 CWA is not in the position to interpret the companys offer and does not give out financial advice. Vm}O%TimaUMG60)f 6(jvR NEZ;[R!m))62Kr)7;yPedf`zms Figuring this out is very simple. (What you might be thinking is that an IRA is less secure from creditors than a pension payout, and that would be correct.) 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. If you choose to do nothing, your current monthly pension payments will continue. If you are eligible for a lump sum, you may be able to get a significantly . Synopsis of Material Modifications Alcatel-Lucent Retirement . Examples of those protections are: The Company may not retroactively reduce those benefits, once they are vested. About Change submenu. 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. One more point, just because our pension are protected now, we should not assume it will always be this way. 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 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). endstream endobj 548 0 obj <>stream Approximately 75,000 eligible former employees, surviving beneficiaries and alternate payees of Alcatel-Lucent have begun receiving formal lump-sum window notices. 40 0 obj <>stream If I do decide to take it, what are my investment options to continue to withdraw on a monthly or yearly basis? Some eligible former employees also had the opportunity to change their existing annuity option to a different annuity option. xoH-Ge/+Uj%_lQ8B\R,Nk;Od.''M[fy%'mNd/i(-*i_EvS4H.fx3Vpe
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