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 of them is offering lump sum buy-outs. 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. A schedule of those sessions is in the Financial and Tax Education Guide booklet provided in the program announcement package. %%EOF (What you might be thinking is that an IRA is less secure from creditors than a pension payout, and that would be correct.) Annuity experiences with Lump Sum - The Lucent Retirees Message Board If you dont have a choice, but must take the lump sum offered, then I suggest rolling it to an IRA as described above. 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. 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 . 0000010715 00000 n What questions should I be asking? 0 Main Office As we get more information, we will publish it on this site. If you are eligible for a lump sum, you may be able to get a significantly . 0000014929 00000 n The lump-sum window runs from July 20 through September 25 and is completely voluntary. hb```\B cbM((-fu`` x';n\("v%u6~:8:F )T@TH HQAA|D,LG&[lnP%Vif^ %t,e`` %x( Early this year Alcatel-Lucent announced they were investigating offering a voluntary lump sum buy-out of retiree pensions. 0000000776 00000 n You have until September to decide and you should use the time to consult with someone who can review your individual situation. Therefore, the company cannot just take money from the pension plan and use it for other things. xref If I roll it over, say into an IRA, then the income becomes taxable. You can have automatic monthly withdrawals, or take money out at any time. 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. That will get you a guaranteed stream of (fully taxable) income for as long as you live. My son in Corby, your life and leadership have been an inspiration to us all. Even if they are, that does not mean you should take it. 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.) In Column D, at your life. Alcatel-Lucent enters into second buy-in for U.K. pension plan Lucent? How to Navigate Pension Changes - The Retirement Group A recent call with a financial advisor in California is representative of a common question related to pension de-risking and lump sums. 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# 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. Some former employees might also have the opportunity to change their current annuity option to a different annuity form. Any money left over in the fund the company would have to pay a penalty tax on. 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. 0000002392 00000 n Q4) Also on page 15 in the Financial & Tax booklet, provided by the company, it says if they go broke we get nothing in a pension. Alcatel-Lucent announced it was being purchased by Nokia. Even if they are, that does not mean you should take it. %PDF-1.7 % Terry Savage is a nationally recognized expert on personal finance, the economy and the markets. Q7) What happens to my healthcare if I take this lump sum buy out? Alcatel-Lucent has contracted with Deloitte to provide Financial and Tax Education Individual Sessions through a number of live group sessions across the U.S. and a series of webcasts, as well as the opportunity for individual sessions via phone appointments. 0000007666 00000 n 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.