(And, you will understand why the company wants to end the pension promise because it was too generous.). 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. And it's true that one dollar in 1990 purchasing power requires $2.73 today. 685 Third Avenue Your guidance is very much appreciated. Early this year Alcatel-Lucent announced they were investigating offering a voluntary lump sum buy-out of retiree pensions. %%EOF I have many questions. Approximately 75,000 eligible former employees, surviving beneficiaries and alternate payees of Alcatel-Lucent have begun receiving formal lump-sum window notices. Any money left over in the fund the company would have to pay a penalty tax on. 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. endstream endobj 272 0 obj <>stream She writes a weekly personal finance column syndicated in major newspapers by Tribune Content Agency. Social Security Solvency: Is it Really That Bad? Recipients have the option to do nothing and will continue to receive their current monthly annuity payments. You will receive your first bill in mid-November for your December coverage. 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. In fact these two announcements are not connected. Early this year Alcatel-Lucent announced they were investigating offering a voluntary lump sum buy-out of retiree pensions. Q1) Where can I get more information about this offer? If you choose to do nothing, your current monthly pension payments will continue. 0000002947 00000 n xoH-Ge/+Uj%_lQ8B\R,Nk;Od.''M[fy%'mNd/i(-*i_EvS4H.fx3Vpe 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. Leadership. 0000007454 00000 n I am 64 yrs. Skip up main content . 0000015024 00000 n [|c-Ur7fg Jlh>{.OQQ ,FuZr"\>`k_,&^[\z^ :;@. @V6l "{1 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. endstream endobj startxref It is a sizable amount of money. Careers at CWA. About 55,000 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). 0000001515 00000 n More on Alcatel-Lucent retiree and pension issues and the acquisition by Nokia. 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. About Change submenu. 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. Choose your news we will deliver. A6) The new annuity is a recalculation, for certain individuals, of the old calculations and is still administered by the pension plan. In Column D, at your life. 0000000776 00000 n 0000011786 00000 n If you are not familiar with these principles, here are some quick tips. Last week retirees received the first official notice of the lump sum offering. New York, NY 10017-4036, Chicago Office 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. Health & Safety Fact Sheets ; Legislation & Politics ; News & Events Q5) Will the new IRS ruling on pensions affect our Lucent retirees taking this lump sum? tS Inflation And Pension Lump Sums: Timing Is Everything - Forbes Last week retirees received the first official notice of the lump sum offering. Some eligible former employees also had the opportunity to change their existing annuity option to a different annuity option. Traditionally, when interest rates rise by 1% the amount in an Lucent employee's lump-sum will drop by 8 - 12%. I need to continue to withdraw money from my pension to live. PDF Summary of Material Modifications Alcatel-Lucent Retirement Income Plan Their answer is that there are no plans for a cost-of-living raise. Information about your Pension Plan benefit is also accessible, and pension transactions can be initiated, online through the Your Benefits Resources (YBR) website at http://resources.hewitt.com/nokia, 24 hours a day, seven A lump sum pension distribution offers the flexibility of being able to spend or invest your retirement savings any way you see fit. More on Alcatel-Lucent Retiree and Pension Issues and the acquisition Alcatel-Lucent Pension Lump Sum Buyout | Communications Workers of 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. To: Formerly Represented Retirees of Alcatel-Lucent, Subject: Questions Regarding the Alcatel-Lucent Pension Lump Sum Buyout. 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 That new car or luxurious vacation may not . *4w| sX8#.i_96"he@;(e[*'m'-Ksbzgh k@0n`76Cdi} fK0/h. {j What about the Pension Protection Act? 8bOM4JDEEE3`%y1OSwR;jysrU ;(SRg3,}tc qR{SeL1E9im|6';Ye]DHH. 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. In addition, Nokia will most probably create a Nokia (USA) subsidiary which would be completely subject to US laws. %PDF-1.7 % 0000010715 00000 n How to Avoid Taxes on Lump Sum Pension Payout - SmartAsset hbbd```b``z "kd(d? Alcatel-Lucent also recommends recipients of the offer consult with their personal financial planner and/or tax advisor before making a decision. Plan assets are protected from being used for purposes other than providing benefits (or reasonable administrative expenses). To read about CWA Members, Leadership or Industries, visit ourAbout page. Tenth Floor A schedule of those sessions is in the Financial and Tax Education Guide booklet provided in the program announcement package. 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. Call 1-888-232-4111 and select "Retirement and Investments", then select "Pension". You may also contact the Nokia Benefits Resource Center. Currently IL does not charge on pension income? xuSn0>DBH I$}C.SwB#s_u_0Bt lV:~D[S84eF}dKq_ ={K~922&1BOz:`. xb```b``d`e`y |,@Q9F90*oZWcS;ik5H0frrx@,V"a"C8jqP 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 Jobs, Health Care & Retirement Security . 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. What asset class is best for corporate plans' growth investments when using LDI?
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