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Lucent Retirees Organization (LR0)
Board of Directors meeting
Jacksonville, Fl October 23,24, 2019

The LRO Board met as outlined above in Jacksonville, FL on Oct 24. Directors Present: Joseph Dombrowski, Robert Janish, Danial Lovatt, Richard McCauley, Frank Minter, Gary Reichow. Director Absent due to health issues: Andrew Guarriello

The meeting was opened at 8:35am by President Joseph Dombrowski. Joe summarized the prepared agenda and it was agreed by all that appropriate issues were being addressed.

Update of Status of IRS Section 420 transfers (Transfer of excess Pension assets to retiree health and Insurance Accounts): A change in the limit associated with the distribution of surplus Pension Assets has been proposed to allow the transfer of pension assets above 110% of obligations to retiree health or insurance accounts. The current limitation is 120% of obligations .This legislation is being aggressively pursued by Nokia as a means of dealing with the currently underfunded Group Life Insurance Trust (GLI). The LRO, NRLN and other groups are supporting these efforts. Lowering the threshold to 110% of assets from 120% would give Nokia the flexibility to deal with the current GLI trust shortfall.

Lobbying efforts by Nokia and the NRLN indicate there is support for this change with legislation pending. The LRO has been pursuing this Group Life Insurance funding issue with Alcatel -Lucent and now Nokia for several years, promoting the importance given the loss of the Death Benefit (one year salary to surviving spouse previously paid out of the pension fund but discontinued in early ’90’s).

This is the last item where the LRO can have a very positive impact for our retiree base. This action is now in the hands of lobbyists, Nokia and our legislators. It is the opinion of the LRO Board that regardless of congressional action, if Nokia’s pension assets remain above 120% at year end, Nokia will transfer a portion or all of the excess to the GLI trust. This should extend funding for another 2 years beyond the current asset level.

Prior to getting into the specifics of dissolution, the board reminisced a bit about LRO accomplishments and contributions to our retirees over the years. The following were some of the specific areas of impact:

LRO Contributions to our retirees.

  1. Communication - The LRO website and newsletters kept our retirees in the loop on issues of importance to our retirees. On legislative issues, we partnered with the NRLN to work issues affecting our retiree base. We also provided information and support to retirees on company benefit issues. Our team of pension and healthcare experts offered analyses of complex pension funding data and assisted retirees with specific healthcare or other benefit questions. Our newsletter with the History Corner articles tried to keep our shared legacy alive, writing of accomplishments of the Bell Labs and of our many historic factories and service centers. We also periodically hosted retiree meetings at population centers across the country to update retirees on key issues like the recent pension buyout program.
  2. Established relationships with key Lucent and Nokia Human Resource executives. The LRO met annually with Mr. John Hickey, Human Resource, V.P. to lay out retiree concerns over pension funding, healthcare, and other benefit issues. In the early ’90’s with Lucent in financial difficulty and pension funding levels dropping into the 80% range, LRO continued to press for adjustments in pension funding allocations more toward fixed income devices with less in equities to help avoid large market losses. The pension plan is now fully funded. Relationships have been established whereby day-to-day phone calls between LRO and Nokia executives have become a commonplace event.
  3. The LRO supported the unsuccessful lawsuit to overturn the cancellation of the Death Benefit by Lucent. This issue was pursued to the appellate court level with a court ruling that the Death Benefit was a “Welfare benefit” at the discretion of the company, in spite of the many Company publications announcing the Death Benefit of one year’s salary to a spouse as an earned benefit funded in the pension plan.
  4. Recovery of health care dollars for retirees. In the early 2000 period, LRO supported a lawsuit charging Lucent with mishandling of certain medical charges which resulted in a large percentage of our members receiving a payout worth several hundreds of dollars.
  5. The LRO has played a major role in pressuring Nokia to take steps to properly fund the GLI Trust. As written above, we believe Nokia is on a path to deal with that issue.
  6. National Retiree Legislative Network (NRLN) - The LRO has been a major funder of the NRLN in support of retiree legislative issues and has provided individual leaders for that organization.

We, the board, are proud of the many hours of volunteer service to our retirees, but now see the major issue of pension funding behind us. We have done all that we can and now with an aging board it is time to come to an end, though you will be hearing about an NRLN/LRO chapter to carry out most of the support activities of the current LRO

Dissolution of the LRO

The primary focus of this board meeting was to go over the plan for dissolution of the LRO. While we have shared with our membership that we were studying dissolution, this meeting was our first to directly establish a plan. Dissolving a 501C5 organization like the LRO is a complex undertaking with specific guidelines provided by the IRS and the State of New York where we are incorporated.

Director Bob Janish, laid out the specific documents, steps and time-line required by the IRS and the State of New York to complete the dissolution process. A key event will be a final meeting of the membership to vote to approve the plan of dissolution now scheduled for March 25, 2020 in Dallas, TX., a location where the LRO Board has held the majority of their meetings. All members will receive a formal invitation to this planned meeting sometime in January, assuming we are able to gain approval from the State of New York of our plan of dissolution. A key part of that plan has to do with the final distribution of LRO residual assets.

Considerable time was spent discussing just how we should distribute those assets. Directors unanimously agreed that as we phased out the LRO we did not want to abandon our retirees. It was concluded that the planned NRLN/LRO chapter would be a worthy organization to support, assuming we can gain concurrence from the NRLN that the chapter would take on the communication and support functions for our retirees on pension, healthcare and other benefit related questions. That would require the chapter to maintain relations with key NOKIA representatives.

President Joe Dombrowski committed to schedule a meeting with Mr. Bill Kadereit, President of the NRLN, to formalize a support agreement with the proposed NRLN/LRO Chapter. If that agreement is attained, the board is proposing to dedicate a portion of its residual assets to that organization. Further discussions on how we might best serve the needs of our retirees led us to consider heath concerns of retirees that often afflict seniors. The thought was to donate a proportionate share of the remaining balance of residual funds to organizations addressing healthcare research and treatment of critical diseases, and a small portion to a recognized charitable group. The board unanimously approved this approach.

The Board approved unanimously the plan of dissolution prepared by Bob Janish, and thanked him for his work in researching State of New York and IRS requirements. All board members expressed their pleasure to serve our retirees interests over the years and the hope that our retirees are appreciative of those tireless efforts on their behalf.

We look back with pride at visionaries like Ken Rasche, our first president, who at a time of distress for Lucent did most of the recruiting of executive talent to run the organization. It has been our pleasure to serve you over the years since our founding in 2003.

Joseph Dombrowski, President, Lucent Retiree Organization (LRO)



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SPECIAL NOTICES TO MEMBERS

Insurance Benefits for Lucent Retirees

After the recent LRO Newsletter, many retirees asked about LUCENT/NOKIA insurance benefits. Here are the facts. Prior to 2003 every Lucent retiree had two death benefits: One is the death benefit paid to a surviving spouse from the pension fund equal to final annual salary. Management retirees lost this benefit in 2003. Non management who did not take the lump sum in 2015 still have this benefit.

Group life insurance is provided by the Company at no charge and is equal to final annual salary. All retirees have this benefit. Between age 65 and 70 it reduces 10% a year. At age 70 is stays at 50% of final salary. It is paid from a separate trust fund which is in danger of depletion in a few years.

Recently, Nokia indicated an intention to transfer money from the pension trust, which has over 120% of projected liabilities, to the life insurance trust. This would enable Nokia to pay Life Insurance benefits for a few more years.


HEALTH, WELFARE, AND PENSION INQUIRIES

Nokia Benefits Resource Center (NBRC)1-888-232-4111
International Long Distance 1-212-444-0994
https://digital.alight.com/nokia    Other links here.


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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.


MEDICARE NEWS


LUCENT RETIREE ISSUES IN THE NEWS

Rather than duplicate links to articles that are posted IN THE NEWS on the NRLN website home page, we will endeavor to post here articles of particular interest to Lucent Retirees. Please visit www.nrln.org for a wide range of retiree news.

Nokia in Line for 5G Contracts Worth up to $2.2B With Chinese Telcos
By Iain Morris; Light Reading ~ Nov 11, 2019

Plans in the works to sell, subdivide partially vacant 175-acre Nokia property in Naperville
By Erin Hegarty; Naperville Sune ~ Nov 08, 2019

Microsoft and Nokia reunite for new alliance, 5 years after failed $7B smartphone megadeal
By Nat Levy; GeekWire ~ Nov 05, 2019

Nokia’s stock-market dive causing concerns in investors and employees
Helsinki Times ~ Nov 04, 2019

Nokia Staff Say Internal Politics Distracting Managers From 5G
By Kati Pohjanpalo; Bloomberg ~ Oct 31, 2019

Nokia Hires 350 R&D Experts to Fix 5G Problems
By Iain Morris; Light Reading ~ Oct 30, 2019

Nokia's 5G Chip Choice Leaves It Exposed
By Iain Morris; Light Reading ~ Oct 28, 2019

Nokia Aims for Better 5G Days as Investors Panic
By Iain Morris; Light Reading ~ Oct 24, 2019

Nokia’s stock keeps falling as profit warning triggers slew of price target cuts
By Tomi Kilgore; MarketWatch ~ Oct 25, 2019

Why Nokia Shares Crashed Hard Today
The Finnish telecom equipment veteran delivered decent third-quarter results but also slashed its long-term earnings guidance while punching the "pause" button on dividend payouts.

By Anders Bylund; The Motley Fool ~ Oct 24, 2019

Nokia Tanks After Cutting Outlook, Sacrificing Payout for 5G
By Niclas Rolander; Bloomberg ~ Oct 24, 2019

Opinion: We Think Nokia (HEL:NOKIA) Is Taking Some Risk With Its Debt
From “Simply Wall St”; Yahoo Finance ~ Oct 11, 2019

Nokia Touts 5G Patent Holdings
Via News Wire Feed; Light Reading ~ Oct 09, 2019

AT&T, Google, Nokia part of ecosystem driving CBRS - analysts
By Monica Alleven; FierceWireless ~ Oct 07, 2019

Trump gives shout-out to Nokia—and CWA notices
By Monica Alleven; FierceWireless ~ Oct 03, 2019

Is 5G a Tailwind or a Headwind for Nokia Stock? Although the 5G rollout benefits NOK, it also provides the same growth channel to the competition
From Josh Enomoto; InvestorPlace ~ Sep 23, 2019

Nokia: 5G is in a state of flux and will be until 2021
By Chris Kelly; Total Telecom ~ Sep 10, 2019

Nokia touts first commercial 5G cloud RAN deployment (psst — it’s Verizon’s)
By Kelly Hill; RCR Wireless News ~ Aug 23, 2019

Nokia Delays Sprint's 5G Rollout
By Mike Dano; Light Reading ~ Aug 14, 2019

Nokia, Ericsson, Cisco Pull US Operators Toward Standalone 5G
By Mike Dano; Light Reading ~ Aug 12, 2019

Ericsson, Nokia at Front of Queue for Orange 5G Contracts
By Iain Morris; Light Reading ~ Aug 06, 2019

Nokia's stock soars on heavy volume after earnings beat, raised outlook
By Tomi Kilgore; MarketWatch ~ Jul 25, 2019

Nokia is taking advantage of Huawei's 5G pain
By Michael Scaturro; CNN Business ~ Jul 25, 2019

Nokia Launches Beacon 1 Mesh Wi-Fi System
By Tim Verry; PC Perspective ~ Jul 18, 2019

Three UK Builds 5G-Ready Cloud Core Network with Nokia
Via “News Wire Feed”; Light Reading ~ Jul 16, 2019

Seriously, Nokia’s 5G Portfolio Makes NOK Stock Worth a Shot
By James Brumley; Investor Place ~ Jul 12, 2019

Nokia’s New Home Wi-Fi Router Takes Aim at Amazon and Google
By Lauren Goode; Wired ~ Jul 09, 2019

Nokia boss warns against tougher telecoms security rules
By Nic Fildes; Financial Times ~ Jul 02, 2019

Opinion: Nokia Exec Says What He Thinks
From Simon Rockman; Forbes ~ Jun 28, 2019

Nokia CEO Finds Positive Spin in Long 5G Game
By Iain Morris; Light Reading ~ Jun 27, 2019

Nokia Set for Recovery With 5G Update – Sources
By Iain Morris; Light Reading ~ Jun 25, 2019

Ericsson, Nokia Prepared for Any US Ban on China-Made Gear
By Iain Morris; Light Reading ~ Jun 24, 2019

Nokia Boasts 5 'Live' 5G Networks as Huawei Hits 120K Shipments
By Iain Morris; Light Reading ~ Jun 20, 2019

Three Great Reasons To Cherish The Nokia 4.2
From Ewan Spence; Forbes ~ Jun 16, 2019

Nokia Winning 5G Contracts Despite Delivery Delays, CEO Says
By Kati Pohjanpalo; Bloomberg ~ Jun 10, 2019

Nokia is fighting hard to steal Huawei's 5G crown
By Sherisse Pham; CNN Business ~ Jun 04, 2019

Nokia confirms 42 commercial 5G deals across the globe
Source: Nokia Oyj; GlobeNewswire ~ Jun 03, 2019