Social Security Solvency: Is it Really That Bad? Today, the pension plan is covered by ERISA and is protected by the Pension Benefit Guaranty Corporation (PBGC). If you roll to Fidelity, Vanguard, or T. Rowe Price they will handle both the investment and withdrawal planning for you. For specifics, click on the employer's name to see the company's press release, SEC filing, or news story announcing the change (some links may expire). 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. Careers at CWA. 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. Your guidance is very much appreciated. "9:@$;dIs0&w@qY }*#l8l 0 Early this year Alcatel-Lucent announced they were investigating offering a voluntary lump sum buy-out of retiree pensions. History. Please review the attached documents for complete information regarding this Program. Therefore, the company cannot just take money from the pension plan and use it for other things. In addition, Nokia will most probably create a Nokia (USA) subsidiary which would be completely subject to US laws. 0000022178 00000 n The attached information (cover letterprogram announcementFTE Guide) will be mailed by Alcatel-Lucent to eligible Plan participants beginning tomorrow, Friday, June 26, 2015. 0000014929 00000 n In fact these two announcements are not connected. Alcatel-Lucent announced it was being purchased by Nokia. Currently the LTPP is funded at approximately 149%. 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). Thank y. Terry Says: Well, first of all, you have one fact wrong. 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. under the Plan to a one-time, lump-sum payment. You have until September to decide and you should use the time to consult with someone who can review your individual situation. One of them is offering lump sum buy-outs. Main Office 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. Traditionally, when interest rates rise by 1% the amount in an Lucent employee's lump-sum will drop by 8 - 12%. Case of the Week: Plan Establishment and Compensation, Case of the Week: Faulty Form 5500 Filings and Reasonable Cause, BREAKING NEWS: Announcing the 2022 NAPA Top DC Advisor Teams, Breaking News: Biden Vetoes Congressional Resolution Blocking ESG Rule, Jerry Schlichter and Tom Clark Fiduciary Litigation Debate: DC Pension Geeks Podcast, Brian Graff Has a Stark Warning for Advisors: NAPA 401(k) Summit, 401(k)s Increasingly Under Attack in Wake of SECURE 2.0 Passage. 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. Alcatel-Lucent also recommends recipients of the offer consult with their personal financial planner and/or tax advisor before making a decision. 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. You DO NOT have to accept this offer. Privacy PolicyTerms of UseCopyright. You can have automatic monthly withdrawals, or take money out at any time. The Program Window is only in effect beginning July 20, 2015 and ends at 11:59 p.m. (EDT) on September 25, 2015. Q7) What happens to my healthcare if I take this lump sum buy out? Suite 3200 A6) The new annuity is a recalculation, for certain individuals, of the old calculations and is still administered by the pension plan. The CWA actuaries will review them to be sure that how they are being calculated is correct. Currently IL does not charge on pension income? 0000015986 00000 n It is a sizable amount of money. A lump sum payout is the more exciting option of the two. 0000001121 00000 n About 55,000 "It is an excuse to put money into their underfunded plan . 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. In fact, at this years CWA T&T Leadership conference, our Research Department conducted a workshop on trends in Pension de-risking and bargaining. 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. 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. Alcatel-Lucent announced it was being purchased by Nokia. 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 Hello Terry, That will get you a guaranteed stream of (fully taxable) income for as long as you live. Examples of those protections are: The Company may not retroactively reduce those benefits, once they are vested. %%EOF 0000008051 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. 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 . In fact these two announcements are not connected. To search for a combination of terms, use quotations and the & symbol. 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. 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.) Rob Kozlowski writes for Pensions & Investments, a sister publication of Business Insurance. For media inquiries, call CWA Communications at 202-434-1168 or emailnews@cwa-union.org. xb```b``d`e`y |,@Q9F90*oZWcS;ik5H0frrx@,V"a"C8jqP What asset class is best for corporate plans' growth investments when using LDI? 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. She writes a weekly personal finance column syndicated in major newspapers by Tribune Content Agency. The CWA actuaries will review them to be sure that how they are being calculated is correct. Illinois DOES NOT currently tax IRA withdrawals. Even if they are, that does not mean you should take it. Biggest Lucent Pension Drop in a Generation. endstream endobj startxref The Columbus Dispatch Tuesday February 16, 2016 5:00 AM. 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. Synopsis of Material Modifications Alcatel-Lucent Retirement . The Program is not being offered to everyone. If you are not familiar with these principles, here are some quick tips. Early this year Alcatel-Lucent announced they were investigating offering a voluntary lump sum buy-out of retiree pensions. Get Email Updates; Receive Text Alerts; Detect Your Local; Search; Services Laborer of Worldwide . In fact Alcatel-Lucent was a foreign company and they could not take our pension funds. i received an offer for a lump sum payout based on the incorrect monthly pension. 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. New York, NY 10017-4036, Chicago Office i receive a pension from alcatel-lucent. hbbd```b``A$Sd9&@A vX{> BUT, if you want some certainty about income, then you might take a portion of the money and buy one of those immediate annuities inside your IRA. 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 will receive your first bill in mid-November for your December coverage. 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.) 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 0000002597 00000 n Recipients have the option to do nothing and will continue to receive their current monthly annuity payments. 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 Call 1-888-232-4111 and select "Retirement and Investments", then select "Pension". In fact, at this years CWA T&T Leadership conference, our Research Department conducted a workshop on trends in Pension de-risking and bargaining. A3) The language on page 10 is standard language. 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. startxref What questions should I be asking? I need to continue to withdraw money from my pension to live. endstream endobj startxref Alcatel-Lucent announced it was being purchased by Nokia. hmk0"tzc7hh:(}&5se(|EV i"0W-kb@@.P|,rQfd\e.9thw)SV"\N2,]Ew9gmP?e? A2) This offer is strictly voluntary. You may also contact the Nokia Benefits Resource Center. they have known this for over 30 days and i am not making any headway with getting it corrected. Their answer is that there are no plans for a cost-of-living raise. 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 . 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. Some eligible former employees also had the opportunity to change their existing annuity option to a different annuity option. Even if they are, that does not mean you should take it. Skip up main content . To read about CWA Members, Leadership or Industries, visit ourAbout page. Again, this is an extremely important decision and it requires careful consideration. The lump-sum window runs from July 20 through September 25 and is completely voluntary. What about the Pension Protection Act? Pension Plans offer lump sums periodically, but typically change once a year. In terms of the Nokia merger -- There is a fear since Nokia is a foreign company our pensions would no longer be protected. 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. (And, you will understand why the company wants to end the pension promise because it was too generous.). at the current rate of yearly allocations given by the employer. To do so, however, the employer must prove to a bankruptcy court or to the PBGC . Recipients have the option to do nothing and will continue to receive their current monthly annuity payments. 0000007666 00000 n sure enough, the lack of stability does bring a certain focus - which, to your point, can be Great article. 0000000776 00000 n Just go to www.immediateannuities.com, and insert your age, gender, state, and the lump sum amount you have to invest. Jobs, Health Care & Retirement Security . After all, getting a huge influx of cash into your account upon retirement would make anyone jump for joy. Examples of those protections are: The Company may not retroactively reduce those benefits, once they are vested.
Magnetic Mind Chris Duncan,
Is Cousin Micki Related To Jimmy Kimmel,
Lettre De Motivation Management Des Organisations Sanitaires Et Sociales,
Articles A