You DO NOT have to accept this offer. One option is to take the lump sum and park it in a money-market fund currently paying more than 4% until better investment opportunities come along. But keep in mind that a lump sum pension payout makes it easier to overspend in retirement. The Columbus Dispatch Tuesday February 16, 2016 5:00 AM. It doesnt prevent a company from declaring bankruptcy. 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. HWmkF}J\l|MiJ(R~H'gC2:)}yH0u g>.]uj&G([mRgm=G-MA5@au%l :vz,!MM@\Torx9 d:'FK]M2| sw 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. Pension Plans offer lump sums periodically, but typically change once a year. 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. 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. 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. "It is an excuse to put money into their underfunded plan . Early this year Alcatel-Lucent announced they were investigating offering a voluntary lump sum buy-out of retiree pensions. 40 0 obj <>stream Alcatel-Lucent Retiree Lump Sum Window Benefits Center at (866) 617-7164. Q6) What company is the new annuity going to be with? PDF Lucent Technologies Inc. Pension Plan - BenefitAnswers Plus 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. 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 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. Bottom Line: Rising rates reduce lump sums. endstream endobj startxref xb```b``d`e`y |,@Q9F90*oZWcS;ik5H0frrx@,V"a"C8jqP Again, this is an extremely important decision and it requires careful consideration. More on Alcatel-Lucent Retiree and Pension Issues and the acquisition Two announcements have been made this year by Alcatel-Lucent and many of you might think they are connected. 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. i receive a pension from alcatel-lucent. 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. Alcatel-Lucent Retiree Pensions - CWA 4900 For Alcatel-Lucent's U.S. pension plans, the funding policy is to contribute amounts to the . Alcatel-Lucent Pension Lump Sum Buyout - Communications Workers of America Recipients have the option to do nothing and will continue to receive their current monthly annuity payments. PBGC proposes pension plan risk-transfer disclosure requirement, Ford pension plan funding holds steady in 2014, COPYRIGHT 2023 BUSINESS INSURANCE HOLDINGS. 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). Dossier of the Week: Alcatel-Lucent's Lump-Sum Offer Recipients have the option to do nothing and will continue to receive their current monthly annuity payments. In fact Alcatel-Lucent was a foreign company and they could not take our pension funds. A2) This offer is strictly voluntary. 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, 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. As we get more information, we will publish it on this site. Q5) Will the new IRS ruling on pensions affect our Lucent retirees taking this lump sum? You can have automatic monthly withdrawals, or take money out at any time. The materials contained herein are intended for instruction only and are not a substitute for professional advice. 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. Everyones situation is different and unique to them. tS If you are not familiar with these principles, here are some quick tips. The National Association of Plan Advisors is a non-profit professional society. 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. 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. You have until September to decide and you should use the time to consult with someone who can review your individual situation. 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. To read about CWA Members, Leadership or Industries, visit ourAbout page. If I roll it over, say into an IRA, then the income becomes taxable. 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). Plan assets are protected from being used for purposes other than providing benefits (or reasonable administrative expenses). hbbd```b``A$Sd9&@A vX{> 17 24 You will see offerings frm major insurance companies giving you a monthly payout. Because this offer was already approved and in the works it is NOT impacted by the ruling. We have raised the question with Nokia. xoH-Ge/+Uj%_lQ8B\R,Nk;Od.''M[fy%'mNd/i(-*i_EvS4H.fx3Vpe In fact, at this years CWA T&T Leadership conference, our Research Department conducted a workshop on trends in Pension de-risking and bargaining. Jobs, Health Care & Retirement Security . Or you could wait a few years to buy an. XWyTfnzp@EA0DEqD" In fact these two announcements are not connected. 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.) The lump-sum window runs from July 20 through September 25 and is completely voluntary. The lump-sum window runs from July 20 through September 25 and is completely voluntary. Even if they are, that does not mean you should take it. 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. Alcatel-Lucent Old Scheme, London, completed a 100 million ($123.7 million) buy-in with Boarding Insurance Core. \?Q8za"mb CMz>GWcgeXSoGcg z!#}'`yOx"(:otxJ+;`Oc56d jnSf;Tm;H8b`i@5@(^hq;X8@d]EXr|w^>|K3Y6g9skZy&jteg}aBM\ju.Ks8XpOTi#Dl8gCx. `lsIf8 y[e?f-IE2.H54&%6h2SQ HUE{RV3@@ Payments are expected to be made from existing U.S. plan assets and we do not expect to make any contributions to U.S. plan assets in connection with either offer, Mr. Malfavon said. History. If the lump sum is not anywhere near enough to generate the same monthly income as your pension, then if given the choice you will want to stick with the pension promise. 0000002597 00000 n My son in Corby, your life and leadership have been an inspiration to us all. received a package in the mail and realized my pension was based on leaving the company oct, 1982. i left the company on 7/15/85. In addition, Nokia will most probably create a Nokia (USA) subsidiary which would be completely subject to US laws. If you dont have a choice, but must take the lump sum offered, then I suggest rolling it to an IRA as described above. hkkG@$fg.e5$-ZRY+u}3+)Jb5j?Bs33g0.lDEPO"$LRBQB{L2BgB@GyNyU/^mDJ$.nyw'(FyY_1JNb+vFcq+3r,k5>k9]TF5Fr ov+%]lnJyZCm;[yw9{Zy zv# 297 0 obj <>stream In fact these two announcements are not connected. 0000001515 00000 n 0000012893 00000 n 0000014070 00000 n 685 Third Avenue More on Alcatel-Lucent retiree and pension issues and the acquisition by Nokia. Today, the pension plan is covered by ERISA and is protected by the Pension Benefit Guaranty Corporation (PBGC). Any money left over in the fund the company would have to pay a penalty tax on. 0000002947 00000 n 2023 Communications Workers of America, AFL-CIO, CLC All Rights Reserved | Site Map | Privacy Policy. Alcatel-Lucent announced it was being purchased by Nokia. On the one hand, you could roll the lump sum into an IRA, with no tax consequences, and then manage the investments and a withdrawal plan (with a certain Minimum Required Distribution) every year. This is an extremely important decision and it requires careful consideration. In a lump sum buy-out the company is paying the present value of the pension amount so that it takes the liability off their books, which means they no longer have to pay PBGC premiums or manage the money themselves. I need to continue to withdraw money from my pension to live. Legacy Alcatel-Lucent Pension Plan If you are eligible for a legacy Alcatel-Lucent pension benefit, you can learn more about it through the YBR website. I Receive a Pension From Alcatel-lucent. Received a Package Call 1-888-232-4111 and select "Retirement and Investments", then select "Pension". 0000011786 00000 n a835gQ00]=8gVYROU4CCXghhr'Hcbo2.0k7.8-1pC*A#=W[K!F$R# 268 0 obj <> endobj It is a sizable amount of money. Alcatel-Lucent to expand lump-sum offer to 32,000 more participants Thank y. Terry Says: Well, first of all, you have one fact wrong. Sign up to receive Terrys free newsletter!! Illinois DOES NOT currently tax IRA withdrawals. In addition, Nokia will most probably create a Nokia (USA) subsidiary which would be completely subject to US laws. Alcatel-Lucent Lump Sum Pension Offer | Communications Workers of America Over the course of the last year the IRS . Advisor action items: Talk the your Alcatel-Lucent clients who may be affected. Companies that are offering lump-sum pension buyouts - Pension Rights 130 E. Randolph St. 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 also recommends recipients of the offer consult with their personal financial planner and/or taxes advisor before making a decision. %PDF-1.5 % About 55,000 Everyones situation is different and unique to them. 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. While a pension annuity offers a fixed monthly income, a. Early this year Alcatel-Lucent announced they were investigating offering a voluntary lump sum buy-out of retiree pensions. In terms of the Nokia merger There is a fear since Nokia is a foreign company our pensions would no longer be protected. You have until September to decide and you should use the time to consult with someone who can review your individual situation. hb```\B cbM((-fu`` x';n\("v%u6~:8:F )T@TH HQAA|D,LG&[lnP%Vif^ %t,e`` %x( 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). The attachment labeled Lump Sum Program Announcement identifies who is and is not eligible. Case of the Week: Do Roth Recharacterizations Still Exist? 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. [|c-Ur7fg Jlh>{.OQQ ,FuZr"\>`k_,&^[\z^ :;@. @V6l "{1 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. 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.

Accident Route 70 Manchester, Nj Today, Derelict Buildings For Sale In West Yorkshire, Knights Templar Uniform For Sale, Social Changes In Late Adulthood, Engineers' Hill Baguio Apartment For Rent, Articles A