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. 0000015024 00000 n So assuming that you are not going to be sued, this is strictly a financial planning question. 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.) 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. "It is an excuse to put money into their underfunded plan . sure enough, the lack of stability does bring a certain focus - which, to your point, can be Great article. 0000011786 00000 n 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. 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 If you dont have a choice, but must take the lump sum offered, then I suggest rolling it to an IRA as described above. 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.) More on Alcatel-Lucent retiree and pension issues and the acquisition by Nokia. 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. 0000002947 00000 n Because this offer was already approved and in the works it is NOT impacted by the ruling. Tenth Floor Holy cow, Nevin, you wrote a white paper! The lump-sum window runs from July 20 through September 25 and is completely voluntary. Alcatel-Lucent announced it was being purchased by Nokia. For example, workers compensation. I need to continue to withdraw money from my pension to live. About 55,000 You have until September to decide and you should use the time to consult with someone who can review your individual situation. 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. Two announcements have been made this year by Alcatel-Lucent and many of you might think they are 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 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. hbbd```b``A$Sd9&@A vX{> Everyones situation is different and unique to them. at the current rate of yearly allocations given by the employer. What about the Pension Protection Act? A3) The language on page 10 is standard language. Even if they are, that does not mean you should take it. Careers at CWA. Therefore, the company cannot just take money from the pension plan and use it for other things. As we get more information, we will publish it on this site. Case of the Week: Do Roth Recharacterizations Still Exist? 0000002597 00000 n 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. trailer Please review the attached documents for complete information regarding this Program. Following are the questions, with the answers, that we have received to date. You have until September to decide and you should use the time to consult with someone who can review your individual situation. 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 hmk0"tzc7hh:(}&5se(|EV i"0W-kb@@.P|,rQfd\e.9thw)SV"\N2,]Ew9gmP?e? Learn more here. Questions Regarding the Alcatel-Lucent Pension Lump Sum Buyout. Two announcements have been made this year by Alcatel-Lucent and many of you might think they are connected. 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. \?Q8za"mb CMz>GWcgeXSoGcg z!#}'`yOx"(:otxJ+;`Oc56d jnSf;Tm;H8b`i@5@(^hq;X8@d]EXr|w^>|K3Y6g9skZy&jteg}aBM\ju.Ks8XpOTi#Dl8gCx. 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. For media inquiries, call CWA Communications at 202-434-1168 or emailnews@cwa-union.org. In fact Alcatel-Lucent was a foreign company and they could not take our pension funds. 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. Or you could wait a few years to buy an. 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. You may also contact the Alcatel-Lucent Retiree Lump Sum Window Benefits Center at (866) 617-7164. 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 The company said in its fourth-quarter 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. To: Formerly Represented Retirees of Alcatel-Lucent, Subject: Questions Regarding the Alcatel-Lucent Pension Lump Sum Buyout. The Program is not being offered to everyone. TAJ6LuR.u(NdLN_Ht)txF%K.)/|q1oO|uB+t{?ZQWH^ hsPZ=+,wz/ Examples of those protections are: The Company may not retroactively reduce those benefits, once they are vested. Alcatel-Lucent announced it was being purchased by Nokia. Main Office Bottom Line: Rising rates reduce lump sums. That is not necessarily true. 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. Last week retirees received the first official notice of the lump sum offering. 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# 0 (And, you will understand why the company wants to end the pension promise because it was too generous.). 3QxbOJZL3 i`/ 4(yKH.WT=\}LN8V^*~& 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. under the Plan to a one-time, lump-sum payment. i receive a pension from alcatel-lucent. A1) Alcatel-Lucent is making available financial and tax education services through Deloitte, an objective, third party organization, at no cost to you. More on Alcatel-Lucent retiree and pension issues and the acquisition by Nokia. Early this year Alcatel-Lucent announced they were investigating offering a voluntary lump sum buy-out of retiree pensions. This one-time opportunity--called the Alcatel-Lucent Retiree Lump-Sum Window Program (the "Program")--formally began on July 20, 2015 and ended on September 25, 2015. old, single, working fulltime, and in great health (knock on wood). All of this is costly to the company. (What you might be thinking is that an IRA is less secure from creditors than a pension payout, and that would be correct.) What asset class is best for corporate plans' growth investments when using LDI? Menu burger Close thin Facebook Twitter Google plus Linked in Reddit Email arrow-right-sm arrow-right Loading Home Buying Calculators L Ne`8H3*00\?0 Z* The National Association of Plan Advisors is a non-profit professional society. Q3) Page 10 of the Alcatel-Lucent Retiree Lump Sum Window booklet says the company has rights to terminate either plan, etc. 0000014070 00000 n If you choose to do nothing, your current monthly pension payments will continue. Advisor action items: Talk the your Alcatel-Lucent clients who may be affected. You will see offerings frm major insurance companies giving you a monthly payout. 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. 17 0 obj <> endobj Terry Savage is a nationally recognized expert on personal finance, the economy and the markets. For media inquiries, call CWA Communications at 202-434-1168 or emailnews@cwa-union.org. Alcatel-Lucent also recommends recipients of the offer consult with their personal financial planner and/or taxes advisor before making a decision. Everyones situation is different and unique to them. 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. Q2) Do I have to take this lump sum buyout offer? 0000001515 00000 n You point out that the pension trust is overfunded, and inflation has taken its toll, particularly on long-time retirees. One more point, just because our pension are protected now, we should not assume it will always be this way. 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. 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. 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. 0000008372 00000 n HWmkF}J\l|MiJ(R~H'g buy-in with Boarding Insurance Core. Alcatel-Lucent to expand lump-sum offer to 32,000 more participants Alcatel-Lucent completes buy-in for U.K. pension fund, eyes full buyout Alcatel-Lucent enters into second buy-in for U.K . i received an offer for a lump sum payout based on the incorrect monthly pension. This offer, called the Alcatel-Lucent Retiree Lump-Sum Window Program, formally began on July 20, 2015 and ended on September 25, 2015.

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