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The Program is not being offered to everyone. To search for a combination of terms, use quotations and the & symbol. That is not necessarily true. )@,F/3H4(-A &.}qp@|te\j|Y#|:Op:[JAa9@gTj-@J Early this year Alcatel-Lucent announced they were investigating offering a voluntary lump sum buy-out of retiree pensions. Can the company terminate the pension plan? I need to continue to withdraw money from my pension to live. To read about CWA Members, Leadership or Industries, visit ourAbout page. Health & Safety Fact Sheets ; Legislation & Politics ; News & Events Lump-Sum vs. Regular Pension Payments: What's the Difference? Just go to www.immediateannuities.com, and insert your age, gender, state, and the lump sum amount you have to invest. i receive a pension from alcatel-lucent. I am 64 yrs. To search specifically for more than one word, put the search term in quotation marks. As we get more information, we will publish it on this site. 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. 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 also recommends recipients of the offer consult with their personal financial planner and/or tax advisor before making a decision. Recipients have the option to do nothing and will continue to receive their current monthly annuity payments. For Alcatel-Lucent's U.S. pension plans, the funding policy is to contribute amounts to the . You can have automatic monthly withdrawals, or take money out at any time. (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. PDF Lucent Technologies Inc. Pension Plan Summary of Material Modifications 0000008372 00000 n View all Financial Planning / Retirement questions. 130 E. Randolph St. *4w| sX8#.i_96"he@;(e[*'m'-Ksbzgh k@0n`76Cdi} fK0/h. {j We have raised the question with Nokia. 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. Two announcements have been made this year by Alcatel-Lucent and many of you might think they are connected. The lump-sum window runs from July 20 through September 25 and is completely voluntary. (What you might be thinking is that an IRA is less secure from creditors than a pension payout, and that would be correct.) Everyones situation is different and unique to them. 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. The materials contained herein are intended for instruction only and are not a substitute for professional advice. 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. 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. Your guidance is very much appreciated. Alcatel-Lucent Old Scheme, London, completed a 100 million ($123.7 million) buy-in with Boarding Insurance Core. Questions Regarding the Alcatel-Lucent Rent Lump Sum Purchase Alcatel-Lucent Pension Lump Sum Buyout | Communications Workers of America | Nokia to merge its 401(k) plan into Alcatel-Lucent's offering Hello Terry, Alcatel-Lucent announced it was being purchased by Nokia. THIS PROGRAM IS STRICTLY VOLUNTARY! 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. Alcatel-Lucent enters into second buy-in for U.K. pension plan Alcatel-Lucent to expand lump-sum offer to 32,000 more participants Get Email Updates; Receive Text Alerts; Detect Your Local; Search; Services Laborer of Worldwide . What You Can Do on the YBR Website If you are now receiving benefits: View your payment confirmations and history; Everyones situation is different and unique to them. Advisor action items: Talk the your Alcatel-Lucent clients who may be affected. Rob Kozlowski writes for Pensions & Investments, a sister publication of Business Insurance. Approximately 75,000 eligible former employees, surviving beneficiaries and alternate payees of Alcatel-Lucent have begun receiving formal lump-sum window notices. IF the company decided to terminate the plan they would have to do it under government guidelines. [|c-Ur7fg Jlh>{.OQQ ,FuZr"\>`k_,&^[\z^ :;@. @V6l "{1 0000008051 00000 n 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. How to Avoid Taxes on Lump Sum Pension Payout - SmartAsset 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.) Legislation and Politics. What about the Pension Protection Act? 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. 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. The lump-sum window runs from July 20 through September 25 and is completely voluntary. Alcatel-Lucent to expand lump-sum offer to 32,000 more participants The CWA actuaries will review them to be sure that how they are being calculated is correct. Q5) Will the new IRS ruling on pensions affect our Lucent retirees taking this lump sum? You point out that the pension trust is overfunded, and inflation has taken its toll, particularly on long-time retirees. I Receive a Pension From Alcatel-lucent. Received a Package 0000012893 00000 n Dossier of the Week: Alcatel-Lucent's Lump-Sum Offer 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). HWmkF}J\l|MiJ(R~H'g This offer is strictly voluntary. Should You Take Pension Payments or a Lump Sum? A How-To Guide PDF Summary of Material Modifications Alcatel-Lucent Retirement Income Plan To: Formerly Represented Retirees of Alcatel-Lucent, Subject: Questions Regarding the Alcatel-Lucent Pension Lump Sum Buyout. 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). 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 \?Q8za"mb CMz>GWcgeXSoGcg z!#}'`yOx"(:otxJ+;`Oc56d jnSf;Tm;H8b`i@5@(^hq;X8@d]EXr|w^>|K3Y6g9skZy&jteg}aBM\ju.Ks8XpOTi#Dl8gCx. 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. Terry Savage is a nationally recognized expert on personal finance, the economy and the markets. One of them is offering lump sum buy-outs. Pension Plans offer lump sums periodically, but typically change once a year. 0000007666 00000 n Q6) What company is the new annuity going to be with? 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. Tenth Floor %PDF-1.5 % 0000001121 00000 n xoH-Ge/+Uj%_lQ8B\R,Nk;Od.''M[fy%'mNd/i(-*i_EvS4H.fx3Vpe 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. L Ne`8H3*00\?0 Z* In fact, at this years CWA T&T Leadership conference, our Research Department conducted a workshop on trends in Pension de-risking and bargaining. This means that there are specific guidelines that must be followed under federal law. It doesnt prevent a company from declaring bankruptcy. hbbd```b``A$Sd9&@A vX{> History. A6) The new annuity is a recalculation, for certain individuals, of the old calculations and is still administered by the pension plan. It is a sizable amount of money. Pros and Cons of Lump Sum Pension Payouts. 17 24 A recent call with a financial advisor in California is representative of a common question related to pension de-risking and lump sums. sure enough, the lack of stability does bring a certain focus - which, to your point, can be Great article. You may also contact the Alcatel-Lucent Retiree Lump Sum Window Benefits Center at (866) 617-7164. 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").