The pension buyout for Alcatel-Lucent is an option for retired employees and their beneficiaries as well as certain other eligible individuals to receive a lump-sum payment of the pension fund amount they're owed, states Communications Workers of America, or CWA. Individuals do not have to accept the buyout and should consider their financial situation when deciding to take it. Not taking it just means pensioners get paid their usual monthly payments.Continue Reading
Alcatel-Lucent decided around the middle of 2015 to offer the lump-sum pension payment in an effort to not have the money as a liability anymore in its financial records and to reduce its need to manage the money, mentions CWA 4900. Those who were eligible got letters notifying them, received a booklet and were told to contact the financial company Deloitte for financial education services, such as counseling, to help with deciding whether to take the buyout. Those who took the buyout would start paying their health care premiums directly instead of having them taken out of the pension. The deadline for making the decision was September 2015, notes CWA 4900.
The downside of taking such a buyout is that the lump-sum amount may not suffice for people who live long lives, especially those who don't have a lot of money in savings or solid investing skills, warns the Pension Rights Center.Learn more about Financial Planning