Retirement Savings & Pension - BenefitAnswers Plus Alcatel-Lucent Lump Sum Pension Offer | Communications Workers of America 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). Thank y. Terry Says: Well, first of all, you have one fact wrong. If you are not familiar with these principles, here are some quick tips. The materials contained herein are intended for instruction only and are not a substitute for professional advice. I need to continue to withdraw money from my pension to live. 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. Get Email Updates; Receive Text Alerts; Detect Your Local; Search; Services Laborer of Worldwide . Pros and Cons of Lump Sum Pension Payouts. 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. you the lump-sum payment. 0000007666 00000 n
Figuring this out is very simple. Early this year Alcatel-Lucent announced they were investigating offering a voluntary lump sum buy-out of retiree pensions. But even if you follow the recommended plan,there will be no guarantees that the payouts will last your lifetime as would be the case with a pension. This will limit your search to that combination of words. More on Alcatel-Lucent Retiree and Pension Issues and the acquisition Inflation And Pension Lump Sums: Timing Is Everything - Forbes 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 0000008372 00000 n
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Types of Pension Payouts: Lump Sum vs. Monthly - SmartAsset Privacy PolicyTerms of UseCopyright. For Alcatel-Lucent's U.S. pension plans, the funding policy is to contribute amounts to the . Their answer is that there are no plans for a cost-of-living raise. Columbia Threadneedle Investments (Columbia Threadneedle) is the global brand name of the Columbia and Threadneedle group of companies. 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.) Case of the Week: Alcatel-Lucent's Lump-Sum Offer 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. hmk0"tzc7hh:(}&5se(|EV i"0W-kb@@.P|,rQfd\e.9thw)SV"\N2,]Ew9gmP?e? Over the course of the last year the IRS . The attached information (cover letterprogram announcementFTE Guide) will be mailed by Alcatel-Lucent to eligible Plan participants beginning tomorrow, Friday, June 26, 2015. I'd point out however that not all wobble stools are bad. To search for a combination of terms, use quotations and the & symbol. 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. Questions Regarding the Alcatel-Lucent Pension Lump Sum Buyout. The Pension Protection Act helps to ensure the plan is appropriately funded. 0000015986 00000 n
web design and development by new target, inc. A lump sum pension distribution offers the flexibility of being able to spend or invest your retirement savings any way you see fit. Leadership. Traditionally, when interest rates rise by 1% the amount in an Lucent employee's lump-sum will drop by 8 - 12%. Just go to www.immediateannuities.com, and insert your age, gender, state, and the lump sum amount you have to invest. One of them is offering lump sum buy-outs. Following are the questions, with the answers, that we have received to date. Sign up to receive Terrys free newsletter!! Examples of those protections are: The Company may not retroactively reduce those benefits, once they are vested. "It is an excuse to put money into their underfunded plan . 0000001121 00000 n
A2) This offer is strictly voluntary. 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. You point out that the pension trust is overfunded, and inflation has taken its toll, particularly on long-time retirees. 0000001515 00000 n
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For media inquiries, call CWA Communications at 202-434-1168 or emailnews@cwa-union.org. Companies that are offering lump-sum pension buyouts - Pension Rights 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. i received an offer for a lump sum payout based on the incorrect monthly pension. If you dont have a choice, but must take the lump sum offered, then I suggest rolling it to an IRA as described above. A3) The language on page 10 is standard language. Approximately 75,000 eligible former employees, surviving beneficiaries and alternate payees of Alcatel-Lucent have begun receiving formal lump-sum window notices. 553 0 obj
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I have many questions. What You Can Do on the YBR Website If you are now receiving benefits: View your payment confirmations and history; 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 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 . Again, this is an extremely important decision and it requires careful consideration. Alcatel-Lucent Lump Sum Buy Out Of Monthly Pension Payments They could do that by purchasing annuities through an insurance company. I need to continue to withdraw money from my pension to live. For media inquiries, call CWA Communications at 202-434-1168 or emailnews@cwa-union.org. I am 64 yrs. She writes a weekly personal finance column syndicated in major newspapers by Tribune Content Agency. 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 Columbus Dispatch Tuesday February 16, 2016 5:00 AM. 0000009608 00000 n
If you are eligible for a lump sum, you may be able to get a significantly . Even if they are, that does not mean you should take it. 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. 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. 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. 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. Or you could wait a few years to buy an. View all Financial Planning / Retirement questions. <]>>
Terry Savage is a nationally recognized expert on personal finance, the economy and the markets. 0000007454 00000 n
For example, workers compensation. It is a sizable amount of money. Hello Terry, Even if they are, that does not mean you should take it. 40 0 obj
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Dossier of the Week: Alcatel-Lucent's Lump-Sum Offer After all, getting a huge influx of cash into your account upon retirement would make anyone jump for joy. You have until September to decide and you should use the time to consult with someone who can review your individual situation. And it's true that one dollar in 1990 purchasing power requires $2.73 today. That will get you a guaranteed stream of (fully taxable) income for as long as you live. You may also contact the Nokia Benefits Resource Center. 8bOM4JDEEE3`%y1OSwR;jysrU ;(SRg3,}tc qR{SeL1E9im|6';Ye]DHH. Main Office 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.) If you choose to do nothing, your current monthly pension payments will continue. 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. 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. PDF Summary of Material Modifications Alcatel-Lucent Retirement Income Plan In fact, at this years CWA T&T Leadership conference, our Research Department conducted a workshop on trends in Pension de-risking and bargaining. 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. As we get more information, we will publish it on this site. 0000014974 00000 n
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To search specifically for more than one word, put the search term in quotation marks. Some eligible former employees also had the opportunity to change their existing annuity option to a different annuity option. In Column D, at your life. Suite 3200 endstream
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PDF Alcatel Data Networks Inc. Retirement Pension Plan - BenefitAnswers Plus In fact Alcatel-Lucent was a foreign company and they could not take our pension funds. Copyright 2023by NAPA, Compliance Administrator (TPA) Evaluation. Case of the Week: Do Roth Recharacterizations Still Exist? TAJ6LuR.u(NdLN_Ht)txF%K.)/|q1oO|uB+t{?ZQWH^ hsPZ=+,wz/
Early this year Alcatel-Lucent announced they were investigating offering a voluntary lump sum buy-out of retiree pensions. To do so, however, the employer must prove to a bankruptcy court or to the PBGC . 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. What about the Pension Protection Act? What asset class is best for corporate plans' growth investments when using LDI? Early this year Alcatel-Lucent announced they were investigating offering a voluntary lump sum buy-out of retiree pensions. 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.) xuSn0>DBH I$}C.SwB#s_u_0Bt
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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. 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. Q5) Will the new IRS ruling on pensions affect our Lucent retirees taking this lump sum? All of this is costly to the company. 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. So assuming that you are not going to be sued, this is strictly a financial planning question.
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. Pension lump sum buyout - Terry Savage Q1) Where can I get more information about this offer? 685 Third Avenue More on Alcatel-Lucent retiree and pension issues and the acquisition by Nokia. About Change submenu. Bottom Line: Rising rates reduce lump sums. You have until September to decide and you should use the time to consult with someone who can review your individual situation. a835gQ00]=8gVYROU4CCXghhr'Hcbo2.0k7.8-1pC*A#=W[K!F$R# As we get more information, we will publish it on this site. 0000012893 00000 n
Alcatel-Lucent announced it was being purchased by Nokia. 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"). This means that there are specific guidelines that must be followed under federal law. Therefore, the company cannot just take money from the pension plan and use it for other things. Quantifying sustainability the numbers, the data, and the people, Valuing Banks: Hidden Losses Versus Assets, Research for Institutional Money Management, Global Fixed Income: Volatility and Uncertainty Here to Stay, For institutional investors, ETFs can make meeting liquidity needs easier, Gold: the most effective commodity investment, 2021 Investment Outlook | Investing Beyond the Pandemic: A Reset for Portfolios, Ten ways retirement plan professionals add value to plan sponsors. %%EOF
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. History. 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. In fact Alcatel-Lucent was a foreign company and they could not take our pension funds. NRLN Lucent/Nokia Retirees Chapter Annuity experiences with Lump Sum - The Lucent Retirees Message Board 0000002947 00000 n
This offer, called the Alcatel-Lucent Retiree Lump-Sum Window Program, formally began on July 20, 2015 and ended on September 25, 2015. 3QxbOJZL3
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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. If I do decide to take it, what are my investment options to continue to withdraw on a monthly or yearly basis? That is not necessarily true. Sell Your Pension & Retirement Plan for a Cash Lump Sum! Synopsis of Material Modifications Alcatel-Lucent Retirement . Pension Plans offer lump sums periodically, but typically change once a year. sure enough, the lack of stability does bring a certain focus - which, to your point, can be Great article. A decision by telecom company Alcatel-Lucent to move $3 billion out of a well-funded pension fund for retired workers into a fund for managers has union leaders worried about the long-term stability of the retirees' fund. You DO NOT have to accept this offer. endstream
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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.
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