130 E. Randolph St. If you are not familiar with these principles, here are some quick tips. Terry Savage is a nationally recognized expert on personal finance, the economy and the markets. 0000022178 00000 n *4w| sX8#.i_96"he@;(e[*'m'-Ksbzgh k@0n`76Cdi} fK0/h. {j 0000012893 00000 n 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. 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.) 0000014929 00000 n Sign up to receive Terrys free newsletter!! Early this year Alcatel-Lucent announced they were investigating offering a voluntary lump sum buy-out of retiree pensions. 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. It is a sizable amount of money. Advisor action items: Talk the your Alcatel-Lucent clients who may be affected. Everyones situation is different and unique to them. Used with permission. 268 0 obj <> endobj I need to continue to withdraw money from my pension to live. they have known this for over 30 days and i am not making any headway with getting it corrected. I am 64 yrs. 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. Plan assets are protected from being used for purposes other than providing benefits (or reasonable administrative expenses). 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). Currently IL does not charge on pension income? I have to decide by Sept. 11, 2015. 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. I'd point out however that not all wobble stools are bad. In fact these two announcements are not connected. To search specifically for more than one word, put the search term in quotation marks. In fact Alcatel-Lucent was a foreign company and they could not take our pension funds. If you roll to Fidelity, Vanguard, or T. Rowe Price they will handle both the investment and withdrawal planning for you. 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 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. [|c-Ur7fg Jlh>{.OQQ ,FuZr"\>`k_,&^[\z^ :;@. @V6l "{1 Learn more here. 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. Early this year Alcatel-Lucent announced they were investigating offering a voluntary lump sum buy-out of retiree pensions. The lump-sum window runs from July 20 through September 25 and is completely voluntary. 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. Q6) What company is the new annuity going to be with? These resources include group sessions, individual sessions and a Financial and Tax Education Tool. 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. 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 But keep in mind that a lump sum pension payout makes it easier to overspend in retirement. Skip up main content . 0 The lump-sum window runs from July 20 through September 25 and is completely voluntary. 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. New York, NY 10017-4036, Chicago Office hbbd```b``A$Sd9&@A vX{> Careers at CWA. 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. Some eligible former employees also had the opportunity to change their existing annuity option to a different annuity option. 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. For media inquiries, call CWA Communications at 202-434-1168 or emailnews@cwa-union.org. Information about your Pension Plan benefit is also accessible, and pension transactions can be initiated, online through the Your Benefits Resources (YBR) website at http://resources.hewitt.com/nokia, 24 hours a day, seven %PDF-1.7 % Former employee, ATT/Lucent/Alcatel-Lucent is offering a lump sum buyout of our pensions. 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. One more point, just because our pension are protected now, we should not assume it will always be this way. 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. In addition, Nokia will most probably create a Nokia (USA) subsidiary which would be completely subject to US laws. 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. You have until September to decide and you should use the time to consult with someone who can review your individual situation. What asset class is best for corporate plans' growth investments when using LDI? 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. To: Formerly Represented Retirees of Alcatel-Lucent, Subject: Questions Regarding the Alcatel-Lucent Pension Lump Sum Buyout. 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. If you are eligible for a lump sum, you may be able to get a significantly . In terms of the Nokia merger There is a fear since Nokia is a foreign company our pensions would no longer be protected. The ERISA consultants at the Learning Center Resource Desk, which is available through Columbia Threadneedle Investments, regularly receive calls from financial advisors on a broad array of technical topics related to IRAs and qualified retirement plans. 685 Third Avenue 0000011786 00000 n 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. Synopsis of Material Modifications Alcatel-Lucent Retirement . One more point, just because our pension are protected now, we should not assume it will always be this way. In Column D, at your life. Therefore, the company cannot just take money from the pension plan and use it for other things. Hello Terry, 0000014070 00000 n 17 24 After all, getting a huge influx of cash into your account upon retirement would make anyone jump for joy. The Program is not being offered to everyone. 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. Columbia Threadneedle Investments (Columbia Threadneedle) is the global brand name of the Columbia and Threadneedle group of companies. Vm}O%TimaUMG60)f 6(jvR NEZ;[R!m))62Kr)7;yPedf`zms One of them is offering lump sum buy-outs. 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. All of this is costly to the company. Q2) Do I have to take this lump sum buyout offer? %PDF-1.5 % What about the Pension Protection Act? In fact these two announcements are not connected. The Program Window is only in effect beginning July 20, 2015 and ends at 11:59 p.m. (EDT) on September 25, 2015. If I do decide to take it, what are my investment options to continue to withdraw on a monthly or yearly basis? A2) This offer is strictly voluntary. For example, workers compensation. Alcatel-Lucent Retiree Lump Sum Window Benefits Center at (866) 617-7164. Examples of those protections are: The Company may not retroactively reduce those benefits, once they are vested. 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 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.) Social Security Solvency: Is it Really That Bad? To read about CWA Members, Leadership or Industries, visit ourAbout page. 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. A6) The new annuity is a recalculation, for certain individuals, of the old calculations and is still administered by the pension plan. (What you might be thinking is that an IRA is less secure from creditors than a pension payout, and that would be correct.) My son in Corby, your life and leadership have been an inspiration to us all. <]>> A5) The new ruling by the IRS addresses discontinuing offering a lump sum buy out in certain circumstances going forward. 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. 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. Plan assets are protected from being used for purposes other than providing benefits (or reasonable administrative expenses). a835gQ00]=8gVYROU4CCXghhr'Hcbo2.0k7.8-1pC*A#=W[K!F$R# 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). A7) If your healthcare premium is currently being deducted from your monthly pension check and you convert your monthly pension payments to a lump sum payment during the program, you will be billed directly for your healthcare premium and you MUST pay the premium in order to continue to receive your healthcare. 0000000016 00000 n Therefore, the company cannot just take money from the pension plan and use it for other things. 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 announced it was being purchased by Nokia. 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. 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. What You Can Do on the YBR Website If you are now receiving benefits: View your payment confirmations and history; 0000017395 00000 n You can have automatic monthly withdrawals, or take money out at any time. You will see offerings frm major insurance companies giving you a monthly payout. 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. %%EOF For Alcatel-Lucent's U.S. pension plans, the funding policy is to contribute amounts to the . hmk0"tzc7hh:(}&5se(|EV i"0W-kb@@.P|,rQfd\e.9thw)SV"\N2,]Ew9gmP?e? Two announcements have been made this year by Alcatel-Lucent and many of you might think they are connected. Examples of those protections are: The Company may not retroactively reduce those benefits, once they are vested. 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. The CWA actuaries will review them to be sure that how they are being calculated is correct. Legislation and Politics. endstream endobj 545 0 obj <>/Metadata 74 0 R/Pages 542 0 R/StructTreeRoot 124 0 R/Type/Catalog/ViewerPreferences 554 0 R>> endobj 546 0 obj <>/MediaBox[0 0 612 792]/Parent 542 0 R/Resources<>/Font<>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI]/XObject<>>>/Rotate 0/StructParents 0/Tabs/S/Type/Page>> endobj 547 0 obj <>stream The CWA actuaries will review them to be sure that how they are being calculated is correct. As we get more information, we will publish it on this site. 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. Tenth Floor 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. 17 0 obj <> endobj 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. Alcatel-Lucent also recommends recipients of the offer consult with their personal financial planner and/or tax advisor before making a decision. 0000015024 00000 n You have until September to decide and you should use the time to consult with someone who can review your individual situation. |@5=Ni!_DKZ89_<9Fa0MU)C2:)}yH0u g>.]uj&G([mRgm=G-MA5@au%l :vz,!MM@\Torx9 d:'FK]M2| Alcatel-Lucent announced it was being purchased by Nokia. You may also contact the Alcatel-Lucent Retiree Lump Sum Window Benefits Center at (866) 617-7164. Alcatel-Lucent plans to make a voluntary lump-sum offer in 2015 to 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 . 544 0 obj <> endobj More on Alcatel-Lucent retiree and pension issues and the acquisition by Nokia. \?Q8za"mb CMz>GWcgeXSoGcg z!#}'`yOx"(:otxJ+;`Oc56d jnSf;Tm;H8b`i@5@(^hq;X8@d]EXr|w^>|K3Y6g9skZy&jteg}aBM\ju.Ks8XpOTi#Dl8gCx. This offer, called the Alcatel-Lucent Retiree Lump-Sum Window Program, formally began on July 20, 2015 and ended on September 25, 2015. Some former employees might also have the opportunity to change their current annuity option to a different annuity form. 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.
Richwood, Ohio Obituaries,
Fun Activities For Adults In Buffalo, Ny,
John Jurasek Brevard County,
How To Turn Off Eco Mode On 2017 Highlander,
Articles A