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HELP FOR SURVIVORS

The LRO receives frequent requests for dealing with the passing of a retiree or surviving spouse. Consequently, we have created a document that focuses on communicating with Nokia benefits and pensions, along with links to websites with checklists for other family issues. The document is available here.

The document is printable so that you can keep it in your files for future reference.


LRO LETTER TO NOKIA & REPLY ARE AVAILABLE HERE


PENSION STATUS REPORT

Recently you should have received from Nokia the Annual Funding Notice (AFN) reporting the status of your pension that they are required to send you each year on April 30. In this status report we will provide some comments on the data in the AFN and also on the information Nokia reported to the SEC earlier this year. The current data in the two documents will probably be the last new current pension status data for this year.

The AFN data provides data at both the beginning of the year (2017) and the end of that year. The beginning of year data covers a three- year period and the following is for the year 2017:

Funding Target Attainment Percentage

Assets $17.628 billion     Liabilities $12.863 billion     Funding Level 137%

Two significant causes are described for the reported funding level. (Also covered in the second paragraph under plan liabilities on page 2 of the AFN). Under Federal Law which was effective in 2011, companies with defined benefit pension plans were allowed to calculate pension liabilities using a 25 year average of interest rates rather than a 2 year average. Currently the 25 year average is greater than the 2 year average, therefore the higher rate reduces the pension liabilities and increases the funding level. Nokia reports that using this average rate adds about 20.5 percentage points to the funding level. The second item is that Nokia has not yet adopted the new actuarial tables for this calculation which also overstates the funding level by about 10%.

The second funding status shown in the AFN is at 12/31/17 as follows:

Assets $18.422 billion     Liabilities $15.636 billion   Funding Level 117.8%

This calculation does not use the 25 year interest rate average but uses the PBGC interest rates. It also does not reflect the use of new actuarial tables which have about a 10% effect on funding level. This funding level is about two percentage points lower than 2016.

Earlier this year, Nokia also filed a Form 20F with the SEC that reported the funding level of our pension plans (in euros) for year end 2016 and 2017.

  2016 2017
Pension Assets  16.9 billion euros 15.3 billion euros 
Pension Liabilities  15.9 billion euros  13.8 billion euros 
Funding level  105.7 %   111.0 % 

Please note the reduction in both assets and liabilities for 2017. Since pension recording for our pension plans is done in dollars, it must be converted into euros for financial reporting by Nokia. The exchange rate from dollars to euros increased from about 1.05 to about 1.20 during this period thereby significantly reducing both reported assets and liabilities. You should also note that Nokia has adopted the new actuarial tables for financial reporting.

When Nokia reports total assets and liabilities for all US pension plans and all US post retirement benefits total pension assets (management and represented plans) exceed total liabilities by 2.4 billion euros. Post retirement benefit plans covering both healthcare and group life insurance benefits liabilities exceed assets by 2.0 billion euros. As reported on the 20F (when all plans are added together) some of the positive increase resulted from the improvement in the euro/dollar exchange rate.

The AFN also reports total participants in the pension plan, both active, retired, and entitled to future benefits. Total participants declined from 117,260 on 1/1/16 to 115,150 on 1/1/17 although active employees increased by 2006 during the year 2016. That is of interest to retirees as Nokia increased pension expense by 63 million euros in 2016 and 75 million euros in 2017 in connection with reinstatement of a cash balance pension plan for active employees. Up to now no assets have been contributed to the plan for this expense.


newsletter

The Fall 2017 LRO Connection newsletter is now available for viewing and may be accessed by clicking here.

As you may recall from our spring newsletter, the LRO Board has been assessing the future direction of the organization. The board met in Dallas in October and formulated a Plan Forward. Specifics of that plan are included in the President's Column.

The History Corner article features the North Carolina Works.

CORRECTION TO NEWSLETTER- The amount of management pension plan liabilities on 12/31/16 shown on page 2 of the recent newsletter should be 15.86 b Euros and the resulting funding level is 106% rather than the 94% shown. We had previously reported the correct level in our June newsletter but apologize for this error.


MEDICARE NEWS

SPECIAL NOTICES TO MEMBERS

HEALTH, WELFARE, AND PENSION INQUIRIES

Nokia Benefits Resource Center (NBRC)1-888-232-4111
International Long Distance 1-212-444-0994
www.resources.hewitt.com/nokia    Other links here.


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Other than this website, our exclusive communication method beginning in 2018 is via email. We regularly inform members about important news. If you have mistakenly 'unsubscribed' to one of our emails, you will no longer hear from us unless you re-subscribe. To “re-subscribe”, or to sign up to receive our emails, or if you are not sure we have your current email address, click on the button.

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RETIREE ISSUES IN THE NEWS

Medicare supplement plans are changing: What you need to know
From Gail MarksJarvis; Reuters ~ Sep 20, 2018

Does Pharma Hike Prices During Med Shortages?
By Dennis Thompson, HealthDay; WebMD ~ Sep 19, 2018

Senators Unveil Legislation To Protect Patients Against Surprise Medical Bills
By Rachel Bluth; Kaiser Health News ~ Sep 19, 2018

Opinion: Trump and the fact-checkers are both missing the bigger point about Social Security’s health
From Brenton Smith; MarketWatch ~ Sep 19, 2018

House GOP bill a mixed bag for retirement savers
From Mark Iwry; The Hill ~ Sep 18, 2018

Determining if a message from Social Security is a scam
By Mary Beth Franklin; InvestmentNews ~ Sep 19, 2018

Nokia (NOK) to Trim Naperville Workforce by 500 in 2018
From “Zacks Equity Research”; Nasdaq ~ Sep 18, 2018

Government health monitoring is causing physicians to leave the medical practice
From Twila Brase; The Hill ~ Sep 18, 2018

Opinion: It's Not Too Soon For Taxes: 4 Moves You Can Make Now
From Mark Avallone; Forbes ~ Sep 18, 2018

The Awful Truth About Expanding Social Security Benefits
By Sean Williams; The Motley Fool ~ Sep 18, 2018

Nokia cuts 250 jobs in Naperville
By John Pletz; Crain’s Chicago Business ~ Sep 17, 2018

CMS proposes rule to streamline Medicare compliance
By Paige Minemyer; FierceHealthcare ~ Sep 17, 2018

New Medicare Advantage Tool To Lower Drug Prices Puts Crimp In Patients’ Choices
By Susan Jaffe; Kaiser Health News ~ Sep 17, 2018

Here's Some Potential Good News About Required Minimum Distributions
By Maurie Backman; The Motley Fool ~ Sep 16, 2018

Opinion: Obamacare And Big Employer Premium Rate Hikes Below 5%
From Bruce Japsen; Forbes ~ Sep 16, 2018

Study: Seniors Should Think Twice Before Reaching For The Aspirin Bottle
By Evie Fordham; The Daily Caller ~ Sep 16, 2018

Opinion: Replacing the 4% Rule For Retirees
From Jack Guttentag; Forbes ~ Sep 15, 2018

Opinion: A Big Rise for Your 2019 Social Security Benefits Is Almost a Sure Thing
By Dan Caplinger; The Motley Fool ~ Sep 14, 2018

House GOP blocks Trump-supported drug pricing provision from spending bill
By Peter Sullivan; The Hill ~ Sep 13, 2018

More than 150 Dems launch caucus to expand Social Security benefits
By Emily Birnbaum; The Hill ~ Sep 13, 2018

Democrats unite to expand Social Security
From Nancy Altman & Alex Lawson; The Hill ~ Sep 13, 2018

Opinion: How Taxes And Inflation Do A Number On Your Retirement Earnings
From Larry Light; Forbes ~ Sep 13, 2018

Make your retirement money last when the downturn comes
From Liz Weston; MarketWatch ~ Sep 13, 2018

Opinion: 6 Reasons Why You Need An Estate Plan
From Catherine Schnaubelt; Forbes ~ Sep 13, 2018

Opinion: 7 Surprising Ways Retirement Will Change Your Life. Retirement alters the structure of your days, your friendships and even your marriage.
From Tom Sightings; US News & World Report ~ Sep 13, 2018

Opinion: 8 Misconceptions About Health Care Costs in Retirement
From Rachel Hartman; US News & World Report ~ Sep 12, 2018

7 Things You Need To Know About 2018 Required Minimum Distributions
From Matt Carey; Forbes ~ Sep 12, 2018

This property tax strategy can help free up income in retirement
By Lorie Konish; CNBC ~ Sep 12, 2018

Drug company CEO calls 400 percent price hike 'moral requirement'
By Jessie Hellmann; The Hill ~ Sep 11, 2018

New scam targeting Medicare users
By Tricia Kean; KTNV.com ~ Sep 11, 2018

Retirees across America are facing a fiscal crisis
By Angela Moore; MarketWatch ~ Sep 11, 2018

House Republicans target more tax cuts as elections near
By David Morgan; Reuters ~ Sep 10, 2018

Opinion: Trump is wrong, Dems are fighting to save Medicare and Social Security
From Max Richtman; The Hill ~ Sep 10, 2018

Stop Blaming Boomers for Social Security's Mess, and Blame These 6 Things Instead
By Sean Williams; The Motley Fool ~ Sep 09, 2018

The Social Security Scam That Just Won't Die
By Dan Caplinger; The Motley Fool ~ Sep 09, 2018

IRS Warns Retirees: Act Now To Avoid Surprise Tax Bill Next April
From Ashlea Ebeling; Forbes ~ Sep 07, 2018

Mayo Clinic, other hospitals launching generic drug maker Civica Rx

Opinion: Aging Parents And The Dangers Of Overmedication
From Carolyn Rosenblatt; Forbes ~ Sep 06, 2018

Hospitals are the ones marking up drug prices, new PhRMA report says
By Tina Reed; FierceHealthcare ~ Sep 05, 2018

Not Getting Enough Sleep Could Hurt Your Heart
By Emily Price; Fortune ~ Sep 05, 2018

Paul Ryan: House to Make Individual Tax Cuts Permanent
By Theodore Bunker; Newsmax ~ Sep 05, 2018

Insurance tactic drags down U.S. drug prices in second quarter: analyst
By Michael Erman; Reuters ~ Sep 04, 2018

Improved mortality means Social Security benefiting higher earners more – CRR brief
By Hazel Bradford; Pensions & Investments ~ Sep 04, 2018

Surprise! Your Medicare Part D Premium Could Drop in 2019
By Dan Caplinger; The Motley Fool ~ Sep 02, 2018

Trump calls for path to open multiple employer plans, mandatory retirement distribution changes
By Hazel Bradford; Pensions & Investments ~ Aug 31, 2018

Opinion: You Might Live To Be 100! Better Do Some Planning
From Sara Zeff Geber; Forbes ~ Aug 31, 2018

Save Money on Medicare. During open enrollment, take a hard look at Part D and Medicare Advantage plans.
By Kimberly Lankford; Kiplinger ~ Aug 30, 2018

Retirement tips: 8 ways to start your year-end financial planning now
By Robert Powell; USA TODAY ~ Aug 29, 2018

White House retirement security announcement expected Friday
By Hazel Bradford; Pensions & Investments ~ Aug 29, 2018

Nokia Nets €500M for 5G Research
From News Wire Feed; Light Reading ~ Aug 27, 2018

Opinion: You May Start Seeing Drug Prices In Ads, But Will You Understand The Point?
From Arlene Weintraub; Forbes ~ Aug 28, 2018

Aspirin disappoints for avoiding first heart attack, stroke
By Marilynn Marchione; The Associated Press ~ Aug 27, 2018

Scammers Posing with Medicare Seek Social Security Numbers
By Caroline Coleburn; NBC29 ~ Aug 27, 2018

Taxpayers scramble as proposed IRS rule on local taxes wrecks workaround strategy
By Darla Mercado; CNBC ~ Aug 24, 2018

What's a Social Security Representative Payee (and Do I Need One)?
By Dan Caplinger; The Motley Fool ~ Aug 25, 2018

Opinion: How to reset retirement plans to weather a downturn
From Liz Weston; Startribune ~ Aug 25, 2018

How to Find the Best Medicare Drug Plan for You for 2019
By Kimberly Lankford; Kiplinger ~ Aug 24, 2018

Hospital Sleuths Unearth Surprise: Knee Surgery Bills Are 5 Times Its Cost.
From KHN Morning Briefing; Kaiser Health News ~ Aug 22, 2018

4 ways the Trump administration wants to change Medicare
By Tami Luhby; CNN ~ Aug 22, 2018

Opinion: When Your Elder Family Member Will Not Address The Realities Of Aging
From Carolyn McClanahan; Forbes ~ Aug 21, 2018

Drug companies rein in prices in response to President Trump's pharma pricing blueprint, HHS report says
By Susan Morse; Healthcare Finance ~ Aug 21, 2018

Anthem, Walmart Partner To Expand Seniors’ Access To OTC Medications
From KHN Morning Briefing; Kaiser Health News ~ Aug 21, 2018

Nokia and Verizon make 5G vehicle breakthrough
By Sead Fadilpašić, ITProPortal – Aug 20, 2018

A patient paid $285 for a $40 drug: Here's why
By Alia Paavola; Becker’s Hospital Review ~ Aug 20, 2018

Opinion: Long-Term Care Insurance For Singles: Do You Really Need It?
From David Rae; Forbes ~ Aug 20, 2018

Opinion: Keep Your Options Open In Retirement
From Zachary Steinhandler; Forbes ~ Aug 20, 2018

A leading Republican urges reform for Medicare and Social Security as deficits balloon after the GOP's tax cut
By John Harwood; CNBC ~ Aug 20, 2018

Companies report no signs of drugmakers cutting prices, despite Trump pledge
By Jessie Hellmann; The Hill ~ Aug 17, 2018

It will be tough for Trump's SEC to overhaul reporting rules
By Pete Schroeder; Forbes ~ Aug 17, 2018

Trump backs CEOs, proposes easing corporate reporting rules
By “Staff”; Reuters ~ Aug 17, 2018

Opinion: Middle-class Americans can't afford another $22 trillion financial crash
From Dennis M. Kelleher; The Hill ~ Aug 17, 2018

Avoid Social Security And Medicare Scams By Staying Informed And Using Caution
By Kelly Phillips Erb; Forbes ~ Aug 17, 2018

Trump officials approve New Jersey plan to stabilize ObamaCare
By Nathaniel Weixel; The Hill ~ Aug 16, 2018

Drug middlemen push back that rebates are to blame for high drug prices
By Robert King; The Washington Examiner ~ Aug 15, 2018

Cuts in Social Security and Medicare are inevitable. Delaying reform will make it worse
By David Schoenbrod and Brian Riedl, USA Today – Aug 15, 2018

Scam robocallers are getting creative and stole nearly $1 billion last year
By Elisabeth Buchwald; MarketWatch ~ Aug 14, 2018

Opinion: For Older Drivers, Silence Is Not Golden
From Tanya Mohn; Forbes ~ Aug 14, 2018

Opinion: Healthcare Is The No. 1 Issue For Voters; A New Poll Reveals Which Healthcare Issue Matters Most
From Robert Pearl, M.D. ; Forbes ~ Aug 13, 2018

Opinion: Obamacare Repeal A GOP Albatross As Midterm Elections Near
From Bruce Japsen; Forbes ~ Aug 12, 2018

The Terrible Social Security Proposal That Just Won't Die
By Sean Williams; The Motley Fool ~ Aug 12, 2018

Osteoporosis drugs tied to lower fracture risk and health costs
By Lisa Rapaport; Reuters ~ Aug 10, 2018

Why Medicare Can't Get The Lowest Drug Prices
From John Wasik; Forbes ~ Aug 10, 2018

Income From the Taxation of Social Security Benefits Will More Than Double by 2026
By Sean Williams; The Motley Fool ~ Aug 10, 2018

Nokia's credit rating rises out of junk territory at Fitch
By Tomi Kilgore; MarketWatch ~ Aug 09, 2018

Pharmacy-Made Pain Creams Flagged On Fears Of Medicare Fraud And Risk
By Julie Appleby; Kaiser Health News ~ Aug 09, 2018

Medicare’s Power To Negotiate Drug Prices Will Harm Patients With Chronic Illnesses, Advocates Warn
From KHN Morning Briefing; Kaiser Health News ~ Aug 09, 2018

Opinion: FDA Approves First Generic Drugs For Fast-Track Review To Combat Overpriced Drugs
From Evie Fordham; The Daily Caller ~ Aug 08, 2018

Longevity Re-Explained: It's Taking Longer For People To Feel Old
From Robert Laura; Forbes ~ Aug 08, 2018

Opinion: Changes To Drug Prices: Gestures And Real Policy Shifts
From Joshua Cohen; Forbes ~ Aug 07, 2018

Opinion: The capital gains tax cut: Like taking candy from a baby
From Gary A. Garfield; The Hill ~ Aug 07, 2018

Opinion: Hospitals have been fleecing Medicare seniors—but hopefully not for much longer
From Ted Okon; The Hill ~ Aug 06, 2018

Opinion: To Avoid a Nasty Tax Surprise on April 15, Check Your Withholding Now
From Brian Vnak, CFP, CPA: Kiplinger ~ Aug 06, 2018

Retirees Struggle To Locate Billions In Lost Pensions As Government Looks For Solutions
By Liam Knox & Lucas Smolcic Larson; WGBH ~ Aug 06, 2018

Opinion: Compulsory pharmaceutical licensing is little more than government theft
From Elizabeth Wright; The Hill ~ Aug 05, 2018

Savvy Senior: How Medicare covers diabetes
By Jim Miller; Daily Herald ~ Aug 05, 2018

What The Demise Of The DOL Fiduciary Rule Means For You: 4 Questions To Ask Your Advisor Now
From Ron Carson; Forbes ~ Aug 05, 2018

Express Scripts hits back at criticisms of PBMs, says it 'would do just fine' without drug price rebates
By Paige Minemyer; FierceHealthcare ~ Aug 03, 2018

Opinion: We need family leave -- but not at the expense of retirement benefits
From Jennifer Greenfield; CNN ~ Aug 03, 2018

AT&T Overpaid Some Pensioners. Now It Wants the Money Back.
By Theo Francis, Wall Street Journal, Aug 3, 2018

New Trump administration rule will require hospitals post prices online
By Jessie Hellmann; The Hill ~ Aug 03, 2018

Medicare Part D Premiums Expected to Decline in 2019
By Thomas Beaton; HealthPayer Intelligence ~ Aug 03, 2018

How drug companies are beating Trump at his own game
By Sarah Karlin-Smith, Sarah Owermohle and Andrew Restuccia, Politico – Aug 3, 2018

Rubio rolls out paid parental leave bill
By Naomi Jagoda, The Hill – Aug 2, 2018

Senate Dems to force vote to block non-ObamaCare insurance plans
By Nathaniel Weixel; The Hill ~ Aug 02, 2018

‘These Plans Aren’t For Everyone’: Administration Defends Short-Term Coverage As Critics Call It Junk Insurance
From KHN Morning Briefing; Kaiser Health News ~ Aug 02, 2018

The Trump Administration Will Boost 'Short-Term Health Plans'—Here's What That Means for You
By Sy Mukherjee; Fortune ~ Aug 01, 2018

Column: Is meaningful, part-time work in retirement a myth?
From Gail MarksJarvis; Reuters ~ Aug 02, 2018

Column: Author delves into U.S. Social Security's origins to debunk myths
From Mark Miller; Reuters ~ Aug 02, 2018

What Will Social Security Look Like in 50 Years?
By Sean Williams; The Motley Fool ~ Aug 01, 2018

Opinion: New parents face the 'social insecurity' of our time, so let's help
By Marco Rubio and Ann Wagner, USA Today – Aug. 1, 2018

Ericsson vs. Nokia: Who's Ahead in 5G Right Now?
By Iain Morris; Light Reading ~ Aug 01, 2018