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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

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

99% of Americans don’t make this easy money-saving choice on health care
By Kari Paul; MarketWatch ~ Jul 31, 2018

Opinion: How Paul McCartney, Betty White and Ruth Bader Ginsburg Are Changing The Face of Retirement
From Megan Gorman; Forbes ~ Jul 31, 2018

Social Security Keeps Losing Buyer Power, and Seniors Are Suffering for It
By Maurie Backman; The Motley Fool ~ Jul 31, 2018

Nokia Reels In $3.5B 5G Deal With T-Mobile US
By Iain Morris; Light Reading ~ Jul 30, 2018

Scam robocallers are getting creative—and even fooling tech-savvy millennials
By Elisabeth Buchwald; MarketWatch ~ Jul 30, 2018

Opinion: As Trump Attacks, Insurers Boost Obamacare Marketing
From Bruce Japsen; Forbes ~ Jul 29, 2018

Secrets to Successfully Aging in Place
From Bob Carlson; Forbes ~ Jul 29, 2018

This Is Great News for Social Security's 2019 COLA
By Sean Williams, Motley Fool – July 29, 2018

Medicare for all is a socialist’s dream — and an American Nightmare
From Dr. Deane Waldman; The Hill ~ Jul 28, 2018

Here's When Congress Will Fix Social Security
By Sean Williams; The Motley Fool ~ Jul 28, 2018

Meet the Rebate, the New Villain of High Drug Prices
By Katie Thomas; The New York Times ~ Jul 27, 2018

Profits Crash at Nokia's Networks Biz
By Iain Morris; Light Reading ~ Jul 26, 2018

Administration Reverses Course, Reinstates Insurer Payments Just Weeks After Freezing Risk-Adjustment Program
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Opinion: 'Tax Reform 2.0' And How The GOP's Deal With The Devil Could Backfire
From Jeffrey Levine; Forbes ~ Jul 26, 2018

House Dems introduce bill to allow Medicare to negotiate drug prices
By Peter Sullivan; The Hill ~ Jul 25, 2018

Senate panel approves bill banning 'gag clauses' in pharmacy contracts
By Jessie Hellmann; The Hill ~ Jul 25, 2018

Opinion: Social Security fixes that would help widows, the oldest old, and low earners
From Richard Eisenberg; MarketWatch ~ Jul 24, 2018

Tax reform 2.0 can alleviate Americans' chronic saving problem
From Ernest Christian & Chris Edwards; The Hill ~ Jul 24, 2018

Opinion: Blame Democrats -- not Trump -- for sabotaging ObamaCare
From Sally Pipes; Fox News ~ Jul 23, 2018

Congress: Support access to palliative care for aging Americans
From Edo Banach; The Hill ~ Jul 23, 2018

Trump battle over drug prices heats up
By Jessie Hellmann; The Hill ~ Jul 22, 2018

Lowering drug prices is a political move that makes both Trump and drug companies 'look good,' says analyst
By Kellie Ell; CNBC ~ Jul 21, 2018

Think you'll live until age 95? You'd better save $100,000 extra for retirement
By Christy Bieber, TMF; Coloradoan ~ Jul 21, 2018

Quality, not quantity, should guide Medicare coverage for heart valve disease treatment
From Susan Peschin ; The Hill ~ Jul 21, 2018

Got Medicare Advantage? Prepare for New Perks — and New Questions.
By Paula Span; The New York Times ~ Jul 20, 2018

Swiss, German drugmakers join U.S. price freeze
By John Miller; Reuters ~ Jul 20, 2018

Merck Is Latest Drugmaker To Lower Some Prices, Earning Political Points As White House Prepares Cost Plan
From KHN Morning Briefing; Kaiser Health News ~ Jul 20, 2018

Social Security Issues Warning About Scams Similar To Those IRS Phone Scams
By Kelly Phillips Erb; Forbes ~ Jul 20, 2018

GOP looks to blunt Dems’ attacks on rising premiums
By Peter Sullivan; The Hill ~ Jul 19, 2018

Poll: Half of Americans find health care harder to afford this year
By Brett Samuels ; The Hill ~ Jul 19, 2018

Trump administration to explore importing prescription drugs
By Nathaniel Weixel; The Hill ~ Jul 19, 2018

Trump's Drug Plan Picks Up Momentum as Merck Lowers Some Prices
By Anna Edney; Bloomberg ~ Jul 18, 2018

Opinion: Changing The Way Medicare Pays Doctors
From Howard Gleckman; Forbes ~ Jul 19, 2018

Fidelity backs away from being ‘point in time’ fiduciary for 401(k) plans
Some advisers think this indicates other providers will pivot in light of DOL fiduciary rule's death

By Greg Iacurci; Pensions & Investments ~ Jul 18, 2018

First it was Pfizer. Now Novartis has frozen drug prices in the US
By Alanna Petrof; CNNMoney ~ Jul 18, 2018

Winning Trump’s praise was easy for Pfizer. Wall Street and the Hill? Not so much
By Arlene Weintraub; FiercePharma ~ Jul 18, 2018

A Growing Number of People Are Navigating Retirement Alone. This Woman Is Spearheading a Movement to Change That
By Elizabeth O'Brien; Money ~ Jul 18, 2018

States challenge federal deductions cap on state and local taxes
By Lydia Wheeler; The Hill ~ Jul 17, 2018

Tax cuts 2.0: What we know so far
By Brittany De Lea; Fox Business ~ Jul 17, 2018

Opinion: Yet another ObamaCare problem needs to be cleaned up by Trump
From Edmund Haislmaier; The Hill ~ Jul 16, 2018

Obamacare, once a GOP target, is now a midterm rallying cry for Democrats
By Sean Sullivan; The Washington Post ~ Jul 16, 2018

Opinion: 4 Regulations That Would Terrify U.S. Drug Companies Ahead Of The 2018 Midterms
From Robert Pearl, M.D.; Forbes ~ Jul 16, 2018

Cost of Individual Health Insurance Depends More Than Ever On Where You Live
By Donna Rosato; Consumer Reports ~ Jul 16, 2018

Opinion: Study: To Avoid Alzheimer’s, Pay Attention To Your Blood Pressure
From Evie Fordham; The Daily Caller ~ Jul 16, 2018

Opinion: How Hidden Costs Can Dent Your Retirement Income
From John Wasik; Forbes ~ Jul 16, 2018

Retirees Go Back to School to Live Out Golden Years on Campus
By Martin Z Braun; Bloomberg ~ Jul 10, 2018

Opiinion: Doctors To Trump: Suspending Insurer Payments Hurts Our Sickest Patients
From Bruce Japsen; Forbes ~ Jul 15, 2018

How Trump can lower drug prices

Medicare Part D Struggles with Opioid Epidemic, Overprescribing Concerns
By Todd Shepherd; The Washington Free Beacon ~ Jul 15, 2018

FDA joins 22 countries' recall of common heart drug
By Jen Christensen; CNN ~ Jul 13, 2018

Opinion: IRS Unlocks The 'Door' For High-Income Savers
From Jeffrey Levine; Forbes ~ Jul 13, 2018

Opinion: Trump Alone Can Cut Taxes
From Kimberley A. Strassel; The Wall Street Journal ~ Jul 13, 2018

Opinion: Trump order risks ‘politicization’ of administrative, mostly Social Security, judiciary
From Joe Davidson; The Washington Post ~ Jul 13, 2018

Trump health chief defends suspending ObamaCare payments
By Nathaniel Weixel ; The Hill ~ Jul 12, 2018

Startups Lead a New Rush Into Obamacare's Now-Profitable Markets
By Zachary Tracer; Bloomberg ~ Jul 11, 2018

More insurers expected to enter the ACA exchanges in 2019
By Rose Meltzer; FierceHealthcare ~ Jul 12, 2018

Trump administration to dump Obama-era rule allowing unions to siphon Medicaid money
By Gregg Re; Fox News ~ Jul 10, 2018

Trump’s Taken Two Huge Swipes At Obamacare In Under A Week
By Robert Donachie; The Daily Caller ~ Jul 11, 2018

Opinion: The Lack Of Medical Device Security -- Accidents Waiting To Happen
From Paul Martyn; Forbes ~ Jul 11, 2018

How to shockproof your retirement healthcare costs
From Gail MarksJarvis; Reuters ~ Jul 11, 2018

Trump orders DOJ task force to investigate wide range of fraud
By Ed Adamczyk; United Press International ~ Jul 11, 2018

Top Dem demands more details on pricing deal between Pfizer and Trump
By Jessie Hellmann; The Hill ~ Jul 11, 2018

Nokia Lands Big Deals in China, UK
By Iain Morris; Light Reading ~ Jul 10, 2018

Will The Cost Of Healthcare Devour Your Retirement Income?
From David Rae; Forbes ~ Jul 09, 2018

Trump calls out Pfizer for raising drug prices
By Nathaniel Weixel; The Hill ~ Jul 09, 2018

Choking on the Cost of 'Medicare for All'
From Sally Pipes; Forbes ~ Jul 09, 2018

Study: Paid family leave proposal would accelerate Social Security's insolvency
By Naomi Jagoda; The Hill ~ Jul 09, 2018

Insurers predict 'market disruption' after Trump suspends Obamacare risk payments
By Amanda Becker; Reuters ~ Jul 08, 2018

Do your homework before moving into a retirement community
By Darla Mercado; CNBC ~ Jul 08, 2018

A Fatal Flaw as Trump Tries to Remake Health Care: Shortcuts
By Robert Pear; The New York Times ~ Jul 07, 2018

Liberal states impose new individual mandate ahead of ObamaCare rollback
By Alex Pappas; Fox News ~ Jul 06, 2018

Troublesome News: Numbers Of Uninsured On The Rise
From Joshua Cohen; Forbes ~ Jul 06, 2018

Why didn't many retirees see a Social Security increase?
By Casey Dowd; Fox Business ~ Jul 06, 2018

What Does a Drug Cost? It Depends on Where You Live.
By Katie Thomas; The New York Times ~ Jul 06, 2018

Opinion: The Simple Credit Mistake Costing Americans Millions
From Liran Amrany; Forbes ~ Jul 05, 2018

The Stubborn Resilience Of The Affordable Care Act
From KHN Morning Briefing; Kaiser Health News ~ Jul 05, 2018

How To Fix Social Security For Vulnerable Americans
From Richard Eisenberg; Forbes ~ Jul 05, 2018

Pfizer hikes prices on 100 drugs
By Avery Anapol; The Hill ~ Jul 04, 2018

Despite Efforts To Chip Away At Health Law, Number Of Americans Who Began Paying For Coverage Increased
From KHN Morning Briefing; Kaiser Health News ~ Jul 03, 2018

Opinion: Emergency departments: the ‘chewing gum and duct tape’ holding together U.S. health care
From Paul Seward; STAT ~ Jul 03, 2018

Tax planning 2018: Confusion under the new tax law can be costly
By Ray Martin; CBS News ~ Jul 03, 2018

Pro-ObamaCare group launches ad in Supreme Court fight
By Jessie Hellmann; The Hill ~ Jul 02, 2018