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.
Case of the Week: Alcatel-Lucent's Lump-Sum Offer To search specifically for more than one word, put the search term in quotation marks. hmk0"tzc7hh:(}&5se(|EV i"0W-kb@@.P|,rQfd\e.9thw)SV"\N2,]Ew9gmP?e? 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. Beware of companies that extend the start of their payout beyond this normal 1 month, because this can have a big impact on your income from the annuity. 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. i received an offer for a lump sum payout based on the incorrect monthly pension. 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. Rob Kozlowski writes for Pensions & Investments, a sister publication of Business Insurance. Your guidance is very much appreciated. Below the lump sum value in Column C, copy and paste the annual pension payout into every row for each year you live, till your life expectancy used in step 1. 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). These resources include group sessions, individual sessions and a Financial and Tax Education Tool. A recent call with a financial advisor in California is representative of a common question related to pension de-risking and lump sums. 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. It is a sizable amount of money.
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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. %%EOF
It is a sizable amount of money. You may also contact the Nokia Benefits Resource Center. Alcatel-Lucent announced it was being purchased by Nokia. For example, workers compensation. I'd point out however that not all wobble stools are bad. 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. One more point, just because our pension are protected now, we should not assume it will always be this way. xref
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. hbbd```b``z
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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. For media inquiries, call CWA Communications at 202-434-1168 or emailnews@cwa-union.org. Alcatel-Lucent to expand lump-sum offer to 32,000 more participants Alcatel-Lucent completes buy-in for U.K. pension fund, eyes full buyout Alcatel-Lucent enters into second buy-in for U.K . 284 0 obj
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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. Alcatel-Lucent also recommends recipients of the offer consult with their personal financial planner and/or taxes advisor before making a decision. you the lump-sum payment. 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 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. While a pension annuity offers a fixed monthly income, a. The Pension Protection Act helps to ensure the plan is appropriately funded. 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. A3) The language on page 10 is standard language. 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. We have raised the question with Nokia. The advisor asked: What are the details around Alcatel-Lucents lump sum offer to former employees?. Two announcements have been made this year by Alcatel-Lucent and many of you might think they are connected. So assuming that you are not going to be sued, this is strictly a financial planning question. The CWA actuaries will review them to be sure that how they are being calculated is correct. (What you might be thinking is that an IRA is less secure from creditors than a pension payout, and that would be correct.) To read about CWA Members, Leadership or Industries, visit ourAbout page. Alcatel-Lucent announced it was being purchased by Nokia. You will receive your first bill in mid-November for your December coverage. The attachment labeled Lump Sum Program Announcement identifies who is and is not eligible. Eligible former employees are NOT required to make any changes to how or when they receive their Plan benefits.
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:vz,!MM@\Torx9 d:'FK]M2| Some former employees might also have the opportunity to change their current annuity option to a different annuity form. Alcatel-Lucent announced it was being purchased by Nokia. Therefore, the company cannot just take money from the pension plan and use it for other things.
More on Alcatel-Lucent Retiree and Pension Issues and the acquisition You point out that the pension trust is overfunded, and inflation has taken its toll, particularly on long-time retirees. sw
View all Financial Planning / Retirement questions. Everyones situation is different and unique to them. One of them is offering lump sum buy-outs. Hello Terry, 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. for subscribing, you are all set for your money saving tips. 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.
PDF Lucent Technologies Inc. Pension Plan - BenefitAnswers Plus Careers at CWA. 553 0 obj
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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. 0000001958 00000 n
PDF Annual Funding Notice Alcatel-Lucent Retirement Income Plan You DO NOT have to accept this offer. 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.
Dossier of the Week: Alcatel-Lucent's Lump-Sum Offer 0
Alcatel-Lucent plans voluntary lump-sum offer in 2015 Case of the Week: Do Roth Recharacterizations Still Exist? 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. In fact these two announcements are not connected. 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. Sign up and get the best of News delivered straight to your email inbox, free of charge. I need to continue to withdraw money from my pension to live. If you dont have a choice, but must take the lump sum offered, then I suggest rolling it to an IRA as described above.
Alcatel-Lucent Pension Lump Sum Buyout | Communications Workers of Q1) Where can I get more information about this offer? My son in Corby, your life and leadership have been an inspiration to us all. Currently IL does not charge on pension income? I have to decide by Sept. 11, 2015. Alcatel-Lucent Retiree Lump Sum Window Benefits Center at (866) 617-7164. 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. A5) The new ruling by the IRS addresses discontinuing offering a lump sum buy out in certain circumstances going forward. 0000014070 00000 n
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If I roll it over, say into an IRA, then the income becomes taxable. Two announcements have been made this year by Alcatel-Lucent and many of you might think they are connected. 130 E. Randolph St. What questions should I be asking? Former employee, ATT/Lucent/Alcatel-Lucent is offering a lump sum buyout of our pensions. \?Q8za"mb CMz>GWcgeXSoGcg
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jnSf;Tm;H8b`i@5@(^hq;X8@d]EXr|w^>|K3Y6g9skZy&jteg}aBM\ju.Ks8XpOTi#Dl8gCx. 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. <]>>
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.)