Q7) What happens to my healthcare if I take this lump sum buy out? PDF Annual Funding Notice Alcatel-Lucent Retirement Income Plan 0000001958 00000 n 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. L Ne`8H3*00\?0 Z* A schedule of those sessions is in the Financial and Tax Education Guide booklet provided in the program announcement package. 0000014070 00000 n 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. 0000007454 00000 n 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. Today, the pension plan is covered by ERISA and is protected by the Pension Benefit Guaranty Corporation (PBGC). 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. After all, getting a huge influx of cash into your account upon retirement would make anyone jump for joy. 17 0 obj <> endobj The Pension Protection Act helps to ensure the plan is appropriately funded. 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. Annuity experiences with Lump Sum - The Lucent Retirees Message Board Terry Savage is a nationally recognized expert on personal finance, the economy and the markets. Choose your news we will deliver. A1) Alcatel-Lucent is making available financial and tax education services through Deloitte, an objective, third party organization, at no cost to you. You have until September to decide and you should use the time to consult with someone who can review your individual situation. But keep in mind that a lump sum pension payout makes it easier to overspend in retirement. !J,3pNM,A|f5\mCl]) Pv&hhy 6u!2|)z9F_!lE^wxDaOo8^ %SE91q45),lEQN8:O $o2dhcflYK fgOlK: 2SYu*q"H3;Ydi37t6K^4nb8o?/zYK Lucent? How to Navigate Pension Changes - The Retirement Group Former employee, ATT/Lucent/Alcatel-Lucent is offering a lump sum buyout of our pensions. Learn more here. 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. Workers' Rights Button submenu. I need to continue to withdraw money from my pension to live. You DO NOT have to accept this offer. 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. Because this offer was already approved and in the works it is NOT impacted by the ruling. ~n]A9iRD wkvU@HB8E8JKkt>:O) 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.) Companies that are offering lump-sum pension buyouts - Pension Rights Sign up to receive Terrys free newsletter!! I Receive a Pension From Alcatel-lucent. Received a Package Inflation And Pension Lump Sums: Timing Is Everything - Forbes 0000017395 00000 n xb```b``d`e`y |,@Q9F90*oZWcS;ik5H0frrx@,V"a"C8jqP History. How to Avoid Taxes on Lump Sum Pension Payout - SmartAsset Jobs, Health Care & Retirement Security . HWmkF}J\l|MiJ(R~H'g had to file to amend its Pension Plan to offer the lump sum program started long before the Nokia merger was announced. One more point, just because our pension are protected now, we should not assume it will always be this way. Just go to www.immediateannuities.com, and insert your age, gender, state, and the lump sum amount you have to invest. You may also contact the Nokia Benefits Resource Center. Legislation and Politics. hbbd```b``z "kd(d? Therefore, the company cannot just take money from the pension plan and use it for other things. You may also contact the Alcatel-Lucent Retiree Lump Sum Window Benefits Center at (866) 617-7164. 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. More on Alcatel-Lucent retiree and pension issues and the acquisition 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"). Alcatel-Lucent Retiree Pensions - CWA 4900 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.) For example, workers compensation. Columbia Threadneedle Investments (Columbia Threadneedle) is the global brand name of the Columbia and Threadneedle group of companies. A decision by telecom company Alcatel-Lucent to move $3 billion out of a well-funded pension fund for retired workers into a fund for managers has union leaders worried about the long-term stability of the retirees' fund. If you roll to Fidelity, Vanguard, or T. Rowe Price they will handle both the investment and withdrawal planning for you. Pension lump sum buyout - Terry Savage 0000008051 00000 n More on Alcatel-Lucent Retiree and Pension Issues and the acquisition Eligible former employees are NOT required to make any changes to how or when they receive their Plan benefits. Careers at CWA. The attachment labeled Lump Sum Program Announcement identifies who is and is not eligible. Over the course of the last year the IRS . Alcatel-Lucent Retiree Lump Sum Window Benefits Center at (866) 617-7164. Menu burger Close thin Facebook Twitter Google plus Linked in Reddit Email arrow-right-sm arrow-right Loading Home Buying Calculators The lump-sum window runs from July 20 through September 25 and is completely voluntary. hbbd```b``A$Sd9&@A vX{> %PDF-1.7 % |@5=Ni!_DKZ89_<9Fa0MU)C2:)}yH0u g>.]uj&G([mRgm=G-MA5@au%l :vz,!MM@\Torx9 d:'FK]M2| The Columbus Dispatch Tuesday February 16, 2016 5:00 AM. 0 endstream endobj 548 0 obj <>stream A recent call with a financial advisor in California is representative of a common question related to pension de-risking and lump sums. You can make some investments that are likely to generate growth and income to support your retirement needs. BIs Article search uses Boolean search capabilities. 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 you the lump-sum payment. startxref Everyones situation is different and unique to them. Your guidance is very much appreciated. Currently the LTPP is funded at approximately 149%. 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. 0000014974 00000 n Recipients have the option to do nothing and will continue to receive their current monthly annuity payments. A2) This offer is strictly voluntary. 2015 Columbia Management Investment Advisers, LLC. Illinois DOES NOT currently tax IRA withdrawals. %PDF-1.5 % 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. Nokia to merge its 401(k) plan into Alcatel-Lucent's offering As we get more information, we will publish it on this site. )@,F/3H4(-A &.}qp@|te\j|Y#|:Op:[JAa9@gTj-@J One of them is offering lump sum buy-outs. The lump-sum window runs from July 20 through September 25 and is completely voluntary. 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. they have known this for over 30 days and i am not making any headway with getting it corrected. 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. 0000002947 00000 n This will limit your search to that combination of words. One of them is offering lump sum buy-outs. The National Association of Plan Advisors is a non-profit professional society. for subscribing, you are all set for your money saving tips. 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. Currently IL does not charge on pension income? Even if they are, that does not mean you should take it. The Program Window is only in effect beginning July 20, 2015 and ends at 11:59 p.m. (EDT) on September 25, 2015. Alcatel-Lucent announced it was being purchased by Nokia. 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 (What you might be thinking is that an IRA is less secure from creditors than a pension payout, and that would be correct.) `lsIf8 y[e?f-IE2.H54&%6h2SQ HUE{RV3@@ 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. If I do decide to take it, what are my investment options to continue to withdraw on a monthly or yearly basis? i received an offer for a lump sum payout based on the incorrect monthly pension. If you are not familiar with these principles, here are some quick tips. If you dont have a choice, but must take the lump sum offered, then I suggest rolling it to an IRA as described above. In fact these two announcements are not connected. You will see offerings frm major insurance companies giving you a monthly payout. 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.) 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. One more point, just because our pension are protected now, we should not assume it will always be this way. That new car or luxurious vacation may not . The materials contained herein are intended for instruction only and are not a substitute for professional advice. What questions should I be asking? You can have automatic monthly withdrawals, or take money out at any time. If you choose to do nothing, your current monthly pension payments will continue. In fact these two announcements are not connected. About Change submenu. Employers that reduce the risk of their pension plans could face a new requirement: disclosing basic information about the transactions to the Pension Benefit Guaranty Corp. as part of paying their annual premium to the federal agency. In terms of the Nokia merger -- There is a fear since Nokia is a foreign company our pensions would no longer be protected. 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. 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. 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. endstream endobj startxref Former employee, ATT/Lucent/Alcatel-Lucent is offering a lump sum buyout of our pensions. 0000007666 00000 n 569 0 obj <>stream 685 Third Avenue So assuming that you are not going to be sued, this is strictly a financial planning question. IF the company decided to terminate the plan they would have to do it under government guidelines. This is an extremely important decision and it requires careful consideration. This means that there are specific guidelines that must be followed under federal law. 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. hb```\B cbM((-fu`` x';n\("v%u6~:8:F )T@TH HQAA|D,LG&[lnP%Vif^ %t,e`` %x( Two announcements have been made this year by Alcatel-Lucent and many of you might think they are connected. 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# I have to decide by Sept. 11, 2015. 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. %%EOF 0000008372 00000 n Plan assets are protected from being used for purposes other than providing benefits (or reasonable administrative expenses). Alcatel-Lucent Old Scheme, London, completed a 100 million ($123.7 million) buy-in with Boarding Insurance Core. Rob Kozlowski writes for Pensions & Investments, a sister publication of Business Insurance. Again, this is an extremely important decision and it requires careful consideration. 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. Or you could wait a few years to buy an. 130 E. Randolph St. 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. While a pension annuity offers a fixed monthly income, a. Everyones situation is different and unique to them. 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.
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