endstream endobj startxref Please review the attached documents for complete information regarding this Program. PDF Annual Funding Notice Alcatel-Lucent Retirement Income Plan View all Financial Planning / Retirement questions. 17 24 Q3) Page 10 of the Alcatel-Lucent Retiree Lump Sum Window booklet says the company has rights to terminate either plan, etc. Inflation And Pension Lump Sums: Timing Is Everything - Forbes To search for a combination of terms, use quotations and the & symbol. 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. Columbia Threadneedle Investments (Columbia Threadneedle) is the global brand name of the Columbia and Threadneedle group of companies. If I roll it over, say into an IRA, then the income becomes taxable. You can have automatic monthly withdrawals, or take money out at any time. 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. old, single, working fulltime, and in great health (knock on wood). Vm}O%TimaUMG60)f 6(jvR NEZ;[R!m))62Kr)7;yPedf`zms One of them is offering lump sum buy-outs. Plan assets are protected from being used for purposes other than providing benefits (or reasonable administrative expenses). I have to decide by Sept. 11, 2015. This will limit your search to that combination of words. 0000007454 00000 n J m^?bSL&MM>^S!OYuFG]2_w*'~vmi"chV6{8E&`(72jje&}\MlKM+TLigQC42BIj4^C};)k"C+"?j^SDE5[k]83/pivCNSa+| $ Leadership. 0000001958 00000 n Alcatel-Lucent Pension Lump Sum Buyout | Communications Workers of HWmkF}J\l|MiJ(R~H'g plan into Alcatel-Lucent's offering Suite 3200 Pension Plans offer lump sums periodically, but typically change once a year. What asset class is best for corporate plans' growth investments when using LDI? 544 0 obj <> endobj Examples of those protections are: The Company may not retroactively reduce those benefits, once they are vested. For media inquiries, call CWA Communications at 202-434-1168 or emailnews@cwa-union.org. hbbd```b``A$Sd9&@A vX{> 0 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. 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. 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. 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. In addition, Nokia will most probably create a Nokia (USA) subsidiary which would be completely subject to US laws. 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. 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. That will get you a guaranteed stream of (fully taxable) income for as long as you live. 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. Legislation and Politics. One of them is offering lump sum buy-outs. 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. 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. The Columbus Dispatch Tuesday February 16, 2016 5:00 AM. 130 E. Randolph St. Former employee, ATT/Lucent/Alcatel-Lucent is offering a lump sum buyout of our pensions. A lump sum pension distribution offers the flexibility of being able to spend or invest your retirement savings any way you see fit. 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. A6) The new annuity is a recalculation, for certain individuals, of the old calculations and is still administered by the pension plan. TAJ6LuR.u(NdLN_Ht)txF%K.)/|q1oO|uB+t{?ZQWH^ hsPZ=+,wz/ My son in Corby, your life and leadership have been an inspiration to us all. \?Q8za"mb CMz>GWcgeXSoGcg z!#}'`yOx"(:otxJ+;`Oc56d jnSf;Tm;H8b`i@5@(^hq;X8@d]EXr|w^>|K3Y6g9skZy&jteg}aBM\ju.Ks8XpOTi#Dl8gCx. %PDF-1.4 % Last week retirees received the first official notice of the lump sum offering. Alcatel-Lucent to expand lump-sum offer to 32,000 more participants Alcatel-Lucent announced it was being purchased by Nokia. Q5) Will the new IRS ruling on pensions affect our Lucent retirees taking this lump sum? i received an offer for a lump sum payout based on the incorrect monthly pension. A recent call with a financial advisor in California is representative of a common question related to pension de-risking and lump sums. Some former employees might also have the opportunity to change their current annuity option to a different annuity form. To read about CWA Members, Leadership or Industries, visit ourAbout page. Sign up and get the best of News delivered straight to your email inbox, free of charge. Recipients have the option to do nothing and will continue to receive their current monthly annuity payments. The attachment labeled Lump Sum Program Announcement identifies who is and is not eligible. 0000000776 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. 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 startxref The Pension Protection Act helps to ensure the plan is appropriately funded. %%EOF 0000014070 00000 n Types of Pension Payouts: Lump Sum vs. Monthly - SmartAsset 0000001121 00000 n 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. If I do decide to take it, what are my investment options to continue to withdraw on a monthly or yearly basis? 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. 0000009608 00000 n I have many questions. So assuming that you are not going to be sued, this is strictly a financial planning question. The materials contained herein are intended for instruction only and are not a substitute for professional advice. Early this year Alcatel-Lucent announced they were investigating offering a voluntary lump sum buy-out of retiree pensions. Last week retirees received the first official notice of the lump sum offering. After all, getting a huge influx of cash into your account upon retirement would make anyone jump for joy. Holy cow, Nevin, you wrote a white paper! 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. i receive a pension from alcatel-lucent. You will see offerings frm major insurance companies giving you a monthly payout. received a package in the mail and realized my pension was based on leaving the company oct, 1982. i left the company on 7/15/85. <]>> *4w| sX8#.i_96"he@;(e[*'m'-Ksbzgh k@0n`76Cdi} fK0/h. {j 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. Alcatel-Lucent plans voluntary lump-sum offer in 2015 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. BIs Article search uses Boolean search capabilities. That is not necessarily true. You DO NOT have to accept this offer. a835gQ00]=8gVYROU4CCXghhr'Hcbo2.0k7.8-1pC*A#=W[K!F$R# 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. Traditionally, when interest rates rise by 1% the amount in an Lucent employee's lump-sum will drop by 8 - 12%. Dossier of the Week: Alcatel-Lucent's Lump-Sum Offer %%EOF What about the Pension Protection Act? Again, this is an extremely important decision and it requires careful consideration. 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 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. Therefore, the company cannot just take money from the pension plan and use it for other things. I have many questions. 0000002947 00000 n We have raised the question with Nokia. PDF Alcatel Data Networks Inc. Retirement Pension Plan - BenefitAnswers Plus In fact, at this years CWA T&T Leadership conference, our Research Department conducted a workshop on trends in Pension de-risking and bargaining. Former employee, ATT/Lucent/Alcatel-Lucent is offering a lump sum buyout of our pensions. 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. Privacy PolicyTerms of UseCopyright. 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. 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. %PDF-1.7 % If you choose to do nothing, your current monthly pension payments will continue. The lump sum amount, if not invested, will hold me for 13 yrs. In fact these two announcements are not connected. 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. tS In fact Alcatel-Lucent was a foreign company and they could not take our pension funds. I'd point out however that not all wobble stools are bad. 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. 0000014974 00000 n 569 0 obj <>stream For example, workers compensation. I Receive a Pension From Alcatel-lucent. Received a Package
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