CWA is not in the position to interpret the companys offer and does not give out financial advice. We have raised the question with Nokia. hbbd```b``A$Sd9&@A vX{> As we get more information, we will publish it on this site. 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.) In Column D, at your life. old, single, working fulltime, and in great health (knock on wood). You will see offerings frm major insurance companies giving you a monthly payout. 0000002597 00000 n THIS PROGRAM IS STRICTLY VOLUNTARY! A2) This offer is strictly voluntary. Holy cow, Nevin, you wrote a white paper! You DO NOT have to accept this offer. To search for a combination of terms, use quotations and the & symbol. 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. Just go to www.immediateannuities.com, and insert your age, gender, state, and the lump sum amount you have to invest. I need to continue to withdraw money from my pension to live. View all Financial Planning / Retirement questions. 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. Jobs, Health Care & Retirement Security . old, single, working fulltime, and in great health (knock on wood). A3) The language on page 10 is standard language. The attachment labeled Lump Sum Program Announcement identifies who is and is not eligible. IF the company decided to terminate the plan they would have to do it under government guidelines. Examples of those protections are: The Company may not retroactively reduce those benefits, once they are vested. Currently IL does not charge on pension income? 268 0 obj <> endobj If you choose to do nothing, your current monthly pension payments will continue. If you are not familiar with these principles, here are some quick tips. 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). (What you might be thinking is that an IRA is less secure from creditors than a pension payout, and that would be correct.) Menu burger Close thin Facebook Twitter Google plus Linked in Reddit Email arrow-right-sm arrow-right Loading Home Buying Calculators Eligible former employees are NOT required to make any changes to how or when they receive their Plan benefits. 0000009608 00000 n startxref J m^?bSL&MM>^S!OYuFG]2_w*'~vmi"chV6{8E&`(72jje&}\MlKM+TLigQC42BIj4^C};)k"C+"?j^SDE5[k]83/pivCNSa+| $ You can have automatic monthly withdrawals, or take money out at any time. 0000001040 00000 n In fact these two announcements are not connected. 0000015024 00000 n If you roll to Fidelity, Vanguard, or T. Rowe Price they will handle both the investment and withdrawal planning for you. You may also contact the Alcatel-Lucent Retiree Lump Sum Window Benefits Center at (866) 617-7164. %%EOF 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. 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.) Alcatel-Lucent, Murray Hillary, N.J., plans on make a unpaid lump-sum offer in 2015 until 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 the U.S. Securities and Exchange Order. The attached information (cover letterprogram announcementFTE Guide) will be mailed by Alcatel-Lucent to eligible Plan participants beginning tomorrow, Friday, June 26, 2015. To read about CWA Members, Leadership or Industries, visit ourAbout page. New York, NY 10017-4036, Chicago Office 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. you the lump-sum payment. (And, you will understand why the company wants to end the pension promise because it was too generous.). Even if they are, that does not mean you should take it. You DO NOT have to accept this offer. 0000000776 00000 n hb```\B cbM((-fu`` x';n\("v%u6~:8:F )T@TH HQAA|D,LG&[lnP%Vif^ %t,e`` %x( 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. So assuming that you are not going to be sued, this is strictly a financial planning question. In addition, Nokia will most probably create a Nokia (USA) subsidiary which would be completely subject to US laws. 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. 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. About Change submenu. To read about CWA Members, Leadership or Industries, visit ourAbout page. What You Can Do on the YBR Website If you are now receiving benefits: View your payment confirmations and history; Social Security Solvency: Is it Really That Bad? 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. 0000001515 00000 n TAJ6LuR.u(NdLN_Ht)txF%K.)/|q1oO|uB+t{?ZQWH^ hsPZ=+,wz/ 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. |@5=Ni!_DKZ89_<9Fa0MU)C2:)}yH0u g>.]uj&G([mRgm=G-MA5@au%l :vz,!MM@\Torx9 d:'FK]M2| 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. History. 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. Bottom Line: Rising rates reduce lump sums. A5) The new ruling by the IRS addresses discontinuing offering a lump sum buy out in certain circumstances going forward. trailer In fact Alcatel-Lucent was a foreign company and they could not take our pension funds. 0000017395 00000 n [|c-Ur7fg Jlh>{.OQQ ,FuZr"\>`k_,&^[\z^ :;@. @V6l "{1 This means that there are specific guidelines that must be followed under federal law. Q2) Do I have to take this lump sum buyout offer? xoH-Ge/+Uj%_lQ8B\R,Nk;Od.''M[fy%'mNd/i(-*i_EvS4H.fx3Vpe 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. Q7) What happens to my healthcare if I take this lump sum buy out? In fact, at this years CWA T&T Leadership conference, our Research Department conducted a workshop on trends in Pension de-risking and bargaining. I am 64 yrs. Their answer is that there are no plans for a cost-of-living raise. The materials contained herein are intended for instruction only and are not a substitute for professional advice. More on Alcatel-Lucent retiree and pension issues and the acquisition by Nokia. She writes a weekly personal finance column syndicated in major newspapers by Tribune Content Agency. Approximately 75,000 eligible former employees, surviving beneficiaries and alternate payees of Alcatel-Lucent have begun receiving formal lump-sum window notices. 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 Program is not being offered to everyone. 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. hmk0"tzc7hh:(}&5se(|EV i"0W-kb@@.P|,rQfd\e.9thw)SV"\N2,]Ew9gmP?e? All of this is costly to the company. For media inquiries, call CWA Communications at 202-434-1168 or emailnews@cwa-union.org. 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. While a pension annuity offers a fixed monthly income, a. If you are eligible for a lump sum, you may be able to get a significantly . You will receive your first bill in mid-November for your December coverage. Early this year Alcatel-Lucent announced they were investigating offering a voluntary lump sum buy-out of retiree pensions. 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 i receive a pension from alcatel-lucent. Any money left over in the fund the company would have to pay a penalty tax on. 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. 0000010715 00000 n One more point, just because our pension are protected now, we should not assume it will always be this way. It doesnt prevent a company from declaring bankruptcy. Over the course of the last year the IRS . 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. Traditionally, when interest rates rise by 1% the amount in an Lucent employee's lump-sum will drop by 8 - 12%. 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. xb```b``d`e`y |,@Q9F90*oZWcS;ik5H0frrx@,V"a"C8jqP 0000011786 00000 n Everyones situation is different and unique to them. Following are the questions, with the answers, that we have received to date. The National Association of Plan Advisors is a non-profit professional society. The CWA actuaries will review them to be sure that how they are being calculated is correct.
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