ALCATEL-LUCENT RETIREE LUMP-SUM WINDOW PROGRAM PROGRAM ANNOUNCEMENT

Transcription

1 ALCATEL-LUCENT RETIREE LUMP-SUM WINDOW PROGRAM PROGRAM ANNOUNCEMENT

2 WHAT S INSIDE Program Overview... 1 Program Timing... 2 Getting Ready... 3 Your Choices Under the Program... 4 How to Participate in the Program... 7 What Happens Next... 9 Other Information...10 Appendices APPENDIX A: LTPP ELIGIBILITY RULES APPENDIX B: ALRIP ELIGIBILITY RULES SERVICE-BASED PROGRAM APPENDIX C: ALRIP ELIGIBILITY RULES ALL OTHER PROGRAMS Resources At-a-Glance... 17

3 PROGRAM OVERVIEW The Alcatel-Lucent Retiree Lump-Sum Window Program (the Program ) is a voluntary, one-time opportunity for eligible former employees, surviving beneficiaries and alternate payees to convert their remaining expected monthly pension payments under the Alcatel-Lucent Retirement Income Plan or Lucent Technologies Inc. Pension Plan (each referred to as the Plan ) to a one-time, lump-sum payment. Some former employees might also have the opportunity to change their current annuity option to a different annuity option. Only former employees, surviving beneficiaries and alternate payees who are currently receiving monthly pension payments from the Plan and meet specific criteria are eligible for this Program. For a complete description of the eligibility criteria, please refer to the Eligibility Rules in the Appendices that start on page 11. You are receiving this communication based on the information the Plan currently has on file. Receiving this communication is not a guarantee that you are eligible for the Program. Your eligibility for the Program may change if your circumstances change (such as death, marriage, divorce or re-employment at Alcatel-Lucent). The Program formally opens on July 20, 2015 and closes at 11:59 p.m., Eastern time (ET), on September 25, If you are eligible for the Program, this will be your only opportunity to convert your current monthly payments to a one-time, lump-sum payment (or other annuity option, if available). After the Program window closes, this one-time opportunity will end. The Program is completely voluntary. If you choose to do nothing, you will continue to receive your current monthly payments. The purpose of this Program Announcement is to provide a general summary of the Program s terms. It constitutes a Summary of Material Modifications ( SMM ) with an effective date of July 20, 2015 and informs you of changes in the information presented in your Summary Plan Description (sometimes called an SPD ) for the Plan or any predecessor plan in which you might have participated that was merged into the Plan. PLEASE DO TWO THINGS: 1. Read this Program Announcement, and 2. Retain a copy of this Program Announcement for your records. 1

4 PROGRAM TIMING The Program formally opens on July 20, 2015 and closes at 11:59 p.m., ET, on September 25, This will be your only opportunity to convert your current monthly payments to a one-time, lump-sum payment (or other annuity option, if available). After the Program window closes, this one-time opportunity will end. Here is a look at the Program s key dates. JULY 20 THROUGH SEPTEMBER 25, 2015 SEPTEMBER 25, 2015 NOVEMBER 2, 2015 DECEMBER 1, 2015 PROGRAM WINDOW This is the period during which you may choose to convert your current monthly payments to a one-time, lump-sum payment (or other annuity option, if available). PROGRAM WINDOW DEADLINE This is the last day to return your properly completed Pension Choices Authorization with all notarized signatures and required documentation to the Alcatel-Lucent Retiree Lump-Sum Window Benefits Center. LUMP-SUM PAYMENT DATE If you choose to convert your current monthly payments to a lump-sum payment, your lump sum will be paid on November 2, Your last current monthly payment also will be paid on November 2, NEW ANNUITY OPTION EFFECTIVE DATE If you choose to change your current annuity option to a new annuity option (if available), your new monthly payments will begin on December 1, The last payment of your current annuity option will be paid on November 2, Don t wait until the last minute. To participate in the Program, you might be required to obtain consent from your current spouse and/or your designated beneficiary (if any) under your current annuity option. Consent is granted with a signature witnessed by a notary public. 2

5 GETTING READY The decision of whether to convert your current monthly payments to a lump-sum payment (or other annuity option, if available) or to do nothing and continue receiving your current monthly payments is a personal choice and there are many factors to consider. To help you make your decision, Alcatel-Lucent is making a number of resources available at no cost to you. The resources available to you are summarized in the Resources At-a-Glance table on page 17. Here is a brief overview of key Program resources: Available now: Review this Program Announcement to help you better understand the Program. Review the enclosed Financial and Tax Education Guide to help you better understand the financial and tax aspects of the Program. In addition, an Excel-based tool is available at the Your Benefits Resources website ( to illustrate general implications of choosing the lump-sum payment based on your information and assumptions. Mailed in mid-july: Look for Your Benefit Decision Kit in the mail in mid-july. This kit shows the amount of your lump-sum payment and any new annuity option available to you under the Program. If you do not receive Your Benefit Decision Kit by July 24, 2015, please call the Alcatel-Lucent Retiree Lump-Sum Window Benefits Center at , between 9:00 a.m. and 5:00 p.m., ET, Monday through Friday. Mid-July through mid-september: Attend one of the live Financial and Tax Education Sessions offered in a city near you or via webcast to learn more about the many factors to consider when making your choices. Refer to the enclosed Financial and Tax Education Guide for the session list and information on how to register for a session. Note: It is recommended that you consult with your personal financial planner and/or tax advisor before making a decision about the Program. MAKE SURE YOUR PERSONAL INFORMATION IS CORRECT In April, you were sent a letter with information about you and your Plan benefit as reflected on the Plan s records. You were asked to review that information and, if needed, correct that information by contacting the Alcatel-Lucent Retiree Lump-Sum Window Benefits Center. If you have not already done so, please review that information now. If anything in that letter is wrong or if the letter says that you must provide certain documents to the Benefits Center, you need to contact the Benefits Center at as soon as possible. If your data isn t correct and complete, the information provided to you in connection with the Program might be wrong and your ability to make choices under the Program might be delayed. The Program deadline will not change, so it is to your advantage to make sure the Plan s information is complete and up-to-date. DO YOU HAVE YOUR USER ID AND PASSWORD? To submit your choices under the Program, you need a User ID and password that can be used online on the Your Benefits Resources website or over the phone. If you do not remember your User ID or password, go to click Forgot User ID or Password, and follow the prompts. Or call the Alcatel-Lucent Retiree Lump-Sum Window Benefits Center at between 9:00 a.m. and 5:00 p.m., ET, Monday through Friday to set up a new User ID or password. 3

6 YOUR CHOICES UNDER THE PROGRAM The Program provides you a one-time opportunity to convert the remaining value of your monthly pension payments to a lump-sum payment. You might also have the opportunity to change your current annuity option to a different annuity option. This one-time opportunity is completely voluntary if you choose to do nothing, your current monthly payments will continue. This section provides you with more information about your choices. CONVERT TO A LUMP-SUM PAYMENT All eligible individuals have the opportunity to convert their current monthly pension payments to a one-time, lump-sum payment. If you choose to convert your current monthly pension payments to a lump-sum payment, you will receive a single payment that represents the present value of your remaining expected monthly payments under the Plan. This will be the last payment you or your beneficiary will receive from the Plan. If you choose a lump-sum payment, you also need to choose how to receive that payment. How you receive your lump-sum payment can result in significant tax differences. You can choose: Rollover to an Individual Retirement Account (IRA) or other qualified retirement plan, such as the Alcatel Lucent Savings/401(k) Plan (if you have a balance in that plan as of November 2, 2015); Direct payment to you; or Partial rollover and partial direct payment. HOW YOUR LUMP-SUM PAYMENT IS CALCULATED The calculation of your lump-sum payment uses assumptions about interest rates and how long you and your named beneficiary, if any, are expected to live. The interest rates used are specified under Section 417(e) of the Internal Revenue Code and the terms of the Plan. These rates are the interest rates published by the Internal Revenue Service (IRS) for August The interest rates used to calculate an eligible individual s lump-sum payment are 1.24% for payments due in the first five years, 3.86% for payments due in the fifth through 20th year, and 4.96% for payments due more than 20 years from the calculation date. These are the same interest rates that are used to calculate lump-sum payments for other Plan participants who receive a lump-sum payment in The mortality table used is also specified under Section 417(e) of the Internal Revenue Code. For 2015 payments, that table is developed using a unisex version of the RP-2000 mortality table adjusted for mortality improvement and is found in IRS Notice This is the same mortality table that is used to calculate lump-sum payments for other Plan participants who receive a lump-sum payment in Please note that the IRS is expected, in the coming years, to publish a new mortality table for calculating lump-sum payments under Section 417(e) of the Internal Revenue Code. It is anticipated that this table will generally reflect longer expected lifetimes and possibly result in larger lump-sum payments. When the IRS will publish a new table for these purposes is uncertain, but the effective date for the new table will be after this Program closes. As a result, it will not apply to any lump-sum payments under the Program. 4

7 ANCILLARY DEATH BENEFIT PAYMENT For certain former occupational and represented employees, the Plan currently provides a death benefit payable to a surviving spouse or other eligible beneficiary. If you are a former employee currently covered by the Plan s pensioner death benefit and choose to convert your current monthly pension payments to a lump-sum payment, an Ancillary Death Benefit Payment will be added to your lump-sum payment. This payment is made without regard to whether, if you were to die today, someone would qualify as your beneficiary for the Plan s pensioner death benefit. If you choose a lump-sum payment and receive an Ancillary Death Benefit Payment, no pensioner death benefit will be paid by the Plan after your death. However, if you choose to change your annuity option to a new annuity option, or continue to receive your current monthly payments, your right to any death benefit under the Plan will not be impacted. The amount of the Ancillary Death Benefit Payment is determined as follows: If you are unmarried on November 1, 2015, you will receive $2,500. If you are married on November 1, 2015, you will receive an amount determined under the following table: YOUR AGE ON NOVEMBER 1, 2015 LESS THAN $35,000 YOUR ANNUALIZED BASE PAY AT RETIREMENT AT LEAST $35,000 BUT LESS THAN $45,000 AT LEAST $45,000 BUT LESS THAN $55,000 $55,000 OR MORE LESS THAN 75 $10,000 $13,000 $17,000 $21, OR OLDER $14,000 $18,000 $23,000 $27,000 If you are eligible for the Ancillary Death Benefit Payment, the payment amount will be shown in Your Benefit Decision Kit, which will be sent to you in mid-july. 5

8 YOUR CHOICES UNDER THE PROGRAM (continued) CHANGE YOUR CURRENT ANNUITY OPTION Certain eligible former employees also have the opportunity to change their current annuity option to a new annuity option. If you are not a former employee, you will not have the ability to change to a new annuity option. As a former employee, the new annuity options available to you depend on your current annuity option and whether you are married. Generally, if you are married, you have up to two annuity options from which to choose: a Joint and 50% Survivor Annuity (with your current spouse as designated beneficiary) and a Joint and 75% Survivor Annuity (with your current spouse as designated beneficiary). If you have a current annuity option that includes a pop-up feature, both of the annuity options available to you under the Program will include a pop-up. Your Benefit Decision Kit will indicate your current annuity option(s) and the annuity option(s) available to you under the Program. HOW YOUR NEW ANNUITY OPTION (IF AVAILABLE) IS CALCULATED Your new annuity option (if available) is calculated by converting your lump-sum payment (as described in How Your Lump-Sum Payment Is Calculated on page 4) to the applicable annuity option. The interest rates and mortality table used to convert your lump-sum payment to the applicable annuity option are the same as those used when calculating your lump-sum payment. A pop-up feature provides a slightly lower benefit while both you and your spouse are living but increases your monthly payments if your designated beneficiary dies before you. If an annuity option that would otherwise be available to you under the Program is identical in all respects to the annuity option for all your current monthly payments, that option will not be available to you under the Program (because you can simply do nothing and keep your current monthly payments). If you are not married, your available annuity option is a Single Life Annuity. However, if the annuity option for all your current monthly payments is a Single Life Annuity, then a Single Life Annuity will not be available to you under the Program (because you can simply do nothing and keep your current monthly payments). 6

9 HOW TO PARTICIPATE IN THE PROGRAM Your Benefit Decision Kit, which will be sent to you in mid-july, will include personalized information concerning your available choices, including your dollar amounts. To participate in the Program, you must, during the Program window: 1. Make your choices, and then 2. Authorize your choices. Again, if you choose not to participate, no action is needed and your current monthly payments will continue. IMPORTANT INFORMATION ABOUT THE DEADLINE If you do not meet the deadline of 11:59 p.m., ET, on September 25, 2015, you will lose the opportunity to participate in the Program and your current monthly pension payments will continue. HOW TO MAKE YOUR CHOICES Beginning July 20, 2015, you make your choices either online through the Your Benefits Resources website ( or by calling the Alcatel-Lucent Retiree Lump-Sum Window Benefits Center at between 9:00 a.m. and 5:00 p.m., ET, Monday through Friday. HOW TO AUTHORIZE YOUR CHOICES Once you make your choices online or over the phone, you will receive a Pension Choices Authorization that will explain in detail what you need to do to authorize your choices, such as: You must sign and date the Pension Choices Authorization. If you are a former employee, your current spouse and your current named beneficiary (if any) may need to sign the form, witnessed by a notary public. You may need to provide documents that verify items like a date of birth or your marital status. Please keep a copy of the Pension Choices Authorization and any other materials you submit for your records. Note: Your choices are only effective if you return your Pension Choices Authorization with all required signatures and documents postmarked, faxed or uploaded to the Your Benefits Resources website by 11:59 p.m., ET, on September 25, Your Pension Choices Authorization will include the address and fax number for the Alcatel-Lucent Retiree Lump-Sum Window Benefits Center, and directions on how to upload your documents to the website. 7

10 HOW TO PARTICIPATE IN THE PROGRAM (continued) When you return your Pension Choices Authorization, if anything is missing or incorrectly completed, it will not be accepted and your choices will not be valid. You will be notified that your Pension Choices Authorization was rejected. You will need to submit any missing documents and might need to submit an entirely new, correct Pension Choices Authorization by 11:59 p.m., ET, on September 25, Consider the deadline carefully. If you decide to participate in the Program, return your Pension Choices Authorization and any required documents as soon as possible to give the Alcatel-Lucent Retiree Lump-Sum Window Benefits Center time to review those materials and identify needed corrections. WHO MUST CONSENT TO YOUR CHOICES If you are a surviving spouse, surviving beneficiary or alternate payee, no one must consent to your choices. If you are a former employee, your current named beneficiary (if any) must consent to any of your choices under the Program. Your current spouse also must consent if you choose to convert your current monthly payments to a lump-sum payment. Each of those consents must be notarized. Your Pension Choices Authorization will reflect who must consent to your choices. Your current named beneficiary may be your current spouse or someone else (for example, your former spouse). The following table summarizes the consent requirements if you are a former employee: CONSENT REQUIREMENTS IF YOUR CURRENT PAYMENT OPTION... IF YOU ARE MARRIED AND YOU CHOOSE A LUMP-SUM PAYMENT: IF YOU ARE MARRIED AND YOU CHOOSE A NEW ANNUITY OPTION: IF YOU ARE NOT MARRIED: Is a Joint & Survivor Annuity and your named beneficiary is living Your current spouse Your named beneficiary Your named beneficiary Your named beneficiary Is not a Joint & Survivor Annuity or is a Joint & Survivor Annuity and your named beneficiary is deceased Your current spouse No consent needed No consent needed If you are receiving multiple payments and the current annuity option for any of those payments is a Joint & Survivor Annuity (and the designated beneficiary for that option is living), the Joint & Survivor Annuity consent rules will apply for your entire Program benefit. 8

11 WHAT HAPPENS NEXT Once you return your Pension Choices Authorization and any required documents, the Alcatel-Lucent Retiree Lump-Sum Window Benefits Center will review that information. If your Pension Choices Authorization is complete and you have provided all required documentation, you will receive a confirmation. No further action is needed, and your lump-sum payment will be made on November 2, 2015 (or your new annuity option if elected will take effect December 1, 2015). If your Pension Choices Authorization is not complete and/or required documentation is missing and it is before the September 25 deadline, you will receive a denial notice explaining what is wrong and/or missing. You may submit the necessary corrections and/or required documentation by the deadline of 11:59 p.m., ET, on September 25, If you submit an incomplete Pension Choices Authorization, a new one will be sent to you by the Alcatel-Lucent Retiree Lump-Sum Window Benefits Center. You must properly complete and return that Pension Choices Authorization by the deadline. If your Pension Choices Authorization is not complete and/or required documentation is missing and it is after the September 25 deadline, you will receive a denial notice indicating that you no longer have the opportunity to participate in the Program, and your current monthly pension payments will continue. CHANGING YOUR CHOICES During the Program window, you can change your choices by calling the Alcatel-Lucent Retiree Lump-Sum Window Benefits Center at Your existing Pension Choices Authorization will be voided, and you will receive a new one which you must complete and return by the September 25 deadline. Be sure to leave yourself enough time to complete and return the new Pension Choices Authorization by the deadline. REVOKING YOUR CHOICES You can revoke your choices at any time before November 1, Before 5:00 p.m., ET, on October 30, 2015, you can revoke your choices by simply calling the Alcatel-Lucent Retiree Lump-Sum Window Benefits Center at and stating that you revoke your choices. After 5:00 p.m., ET, on October 30, 2015, you can only revoke your choices by sending a written letter, postmarked, faxed or uploaded to the Program website by 11:59 p.m., ET, on October 31, Your written letter must clearly indicate that you revoke your choices. If you revoke your choices, your current monthly pension payments will continue. HEALTH AND INSURANCE PREMIUM If your Health and Insurance premium is currently deducted from your monthly pension payment, deductions will continue only if you continue to receive a monthly payment. If your Health and Insurance premium is currently deducted from your monthly pension payment and you convert your monthly payments to a lump-sum payment during the Program, you will be billed directly for your Health and Insurance premium. Similarly, if you change to a new annuity option and your new monthly payment is less than your monthly Health and Insurance premium, you will be billed directly for your entire premium. You will receive your first bill in mid-november for your December coverage. 9

12 OTHER INFORMATION FILING A CLAIM The Pension Plan Administrator and any applicable appeal committee have the full authority and discretion to interpret the terms of the Plan and to make any and all factual determinations necessary or appropriate to the administration of the Program. This includes the authority and discretion to make determinations regarding (i) your eligibility for the Program, (ii) the type and amount of each form of payment available to you under the Program, (iii) the consents required for your Program choices, (iv) all documents you must provide and the adequacy of those documents, and (v) all other matters necessary or appropriate to implement the Program. You have the right to file a claim if you feel any decision was made in error. All claims concerning the Program must be brought within one year of the date on which the claim arises. All claims must be in writing, include pertinent and supporting documentation, and be sent to: Pension Plan Administrator Alcatel-Lucent 600 Mountain Avenue, Room 6C-402A Murray Hill, NJ PLAN TERMS CONTROL Every care has been taken to ensure the accuracy of the information contained in this Program Announcement and the other materials made available to you regarding the Program. However, the actual terms of the Program are reflected in the official Plan document, as amended. You may request a copy of the official Plan document by writing to the Alcatel-Lucent Benefits Center at: Alcatel-Lucent Benefits Center P.O. Box Orlando, FL The Plan may make a reasonable charge to cover the cost of furnishing such copy. In the event of a conflict between the official Plan document and this Program Announcement, or any of the other materials provided to you regarding the Program, the official Plan document (as amended) will control. Neither the Company nor the Plan is bound by any statements made by unauthorized persons or entities. In the event of a conflict between any information provided to you by an authorized person or entity, this Program Announcement (or the official plan document in the event of a conflict between this Program Announcement and the official plan document) will control. COMPANY S RIGHT TO AMEND OR TERMINATE THE PLAN The Company expects to continue the Alcatel-Lucent Retirement Income Plan and the Lucent Technologies Inc. Pension Plan, but reserves the right to amend or terminate either or both plans, in whole or in part, at any time by the resolution of its Board of Directors or the Board s properly authorized designee. 10

13 APPENDICES APPENDIX A: LTPP ELIGIBILITY RULES This appendix describes the eligibility rules for former employees, surviving beneficiaries and alternate payees whose benefits are being paid pursuant to the Lucent Technologies Inc. Pension Plan. ELIGIBLE FORMER EMPLOYEE You are an eligible former employee if you are receiving monthly pension payments from the Plan as of June 13, 2015, and either: Retired with a service pension or disability pension on or after March 1, 1990 and before January 1, 2014, or Terminated employment before October 19, 2007 with the right to a deferred vested pension and commenced receiving that benefit on or after March 1, 1990 and before July 1, Notwithstanding the foregoing, you are not eligible for the Program if any of the following applies to you: You die before November 1, You are married and your spouse dies after September 25, 2015 and before November 1, Your current annuity option is a joint and survivor annuity, and your designated beneficiary dies after September 25, 2015 and before November 1, You marry, or remarry, after September 25, 2015 and before November 1, You are employed by any Alcatel-Lucent company as of July 20, 2015 or between July 20 and November 1, Your benefit under the Plan is subject to a domestic relations order that, as of June 1, 2015, has not been determined by the Plan Administrator to be a qualified domestic relations order. Your benefit under the Plan is subject to a qualified domestic relations order that the Plan Administrator has determined to be a shared interest order. Your benefit under the Plan is or becomes subject to a tax levy or garnishment order. Any portion of your benefit under the Plan is not currently in pay status. You terminated employment before turning age 55 and will not be at least 59½ years old on November 1, You terminated employment before turning age 55, commence payment of benefit prior to age 59½ and, although you will be 59½ years old or older on November 1, 2015, you will have been receiving pension payments from the Plan for less than 5 years as of that date. Your benefit under the Program, if offered, would exceed certain Internal Revenue Code limits. ELIGIBLE SURVIVING BENEFICIARY You are an eligible surviving beneficiary if you are receiving survivor monthly payments from the Plan as of June 13, 2015, and the former employee with respect to whom you are the surviving beneficiary: Retired on or after March 1, 1990 and before January 1, 2014 with a service pension or disability pension, Was eligible to retire with a service pension or disability pension but died before beginning to receive that benefit (and you began receiving your survivor benefit on or after March 1, 1990 and before January 1, 2014), Terminated employment before October 19, 2007 with the right to a deferred vested pension and commenced receiving that benefit on or after March 1, 1990 and before July 1, 2012, or Terminated employment before October 19, 2007 with the right to a deferred vested pension but died before beginning to receive that benefit (and you began receiving your survivor benefit on or after March 1, 1990 and before July 1, 2012). Notwithstanding the foregoing, you are not an eligible surviving beneficiary if any of the following applies to you: You die before November 1, The former employee with respect to whom you are the surviving beneficiary died on or after January 1, The former employee with respect to whom you are the surviving beneficiary elected to receive a 10-year period-certain and life annuity. The only survivor benefit that you are receiving from the Plan is an accident death benefit, a sickness death benefit or a pensioner death benefit. Your survivor benefit under the Plan is or becomes subject to a tax levy or garnishment order. Any portion of your benefit under the Plan is not currently in pay status. 11

14 APPENDICES (continued) APPENDIX A: LTPP ELIGIBILITY RULES (continued) ELIGIBLE ALTERNATE PAYEE You are an eligible alternate payee if you are receiving monthly payments as an alternate payee from the Plan as of June 13, 2015, you began receiving your alternate payee benefit on or after March 1, 1990 and before January 1, 2014, and the former employee with respect to whom you are an alternate payee: Retired on or after March 1, 1990 and before January 1, 2014 with a service pension or disability pension, or Terminated employment before October 19, 2007 with the right to a deferred vested pension and commenced receiving that benefit on or after March 1, 1990 and before July 1, Notwithstanding the foregoing, you are not considered to be an eligible alternate payee, and you are not eligible for the Program, if any of the following applies to you: You die before November 1, The domestic relations order with respect to which you purport to be an alternate payee is not determined by the Plan Administrator to be a qualified domestic relations order by June 1, The domestic relations order pursuant to which you are an alternate payee has been determined by the Plan Administrator to be a shared interest order. Your alternate payee benefit under the Plan is or becomes subject to a tax levy or garnishment order. Any portion of your benefit under the Plan is not currently in pay status. APPENDIX B: ALRIP ELIGIBILITY RULES SERVICE-BASED PROGRAM This appendix describes the eligibility rules for former employees, surviving beneficiaries and alternate payees whose benefits are being paid pursuant to the Service-Based Program provisions of the Alcatel-Lucent Retirement Income Plan or whose benefit derives from the former AGCS Salaried Pension Plan. See Appendix C for the eligibility rules applicable to individuals whose benefits are being paid pursuant to the Lucent Pension Program (i.e., individuals whose pension benefit was transferred from the Lucent Technologies Inc. Pension Plan to the Alcatel-Lucent Retirement Income Plan) or whose benefits derive from the former AG Communication Systems Corporation Pension Plan for Certain Union Represented Employees. ELIGIBLE FORMER EMPLOYEE You are an eligible former employee if you are receiving monthly pension payments from the Plan as of June 13, 2015, and either: Retired with a service pension or disability pension on or after March 1, 1990 and before April 1, 2011, or Terminated employment before January 1, 1998 with the right to a deferred vested pension and commenced receiving that benefit on or after March 1, 1990 and before July 1, Notwithstanding the foregoing, you are not eligible for the Program if any of the following applies to you: You die before November 1, You are married and your spouse dies after September 25, 2015 and before November 1, Your current annuity option is a joint and survivor annuity, and your designated beneficiary dies after September 25, 2015 and before November 1, You marry, or remarry, after September 25, 2015 and before November 1, (continues on next page)

15 APPENDIX B: ALRIP ELIGIBILITY RULES SERVICE-BASED PROGRAM (continued) (continued) You are employed by any Alcatel-Lucent company as of July 20, 2015 or between July 20 and November 1, Your benefit under the Plan is subject to a domestic relations order that, as of June 1, 2015, has not been determined by the Plan Administrator to be a qualified domestic relations order. Your benefit under the Plan is subject to a qualified domestic relations order that the Plan Administrator has determined to be a shared interest order. Your benefit under the Plan is or becomes subject to a tax levy or garnishment order. Any portion of your benefit under the Plan is not currently in pay status. All or any portion of your benefit under the Plan is derived from the provisions of the Alcatel USA, Inc. Consolidated Retirement Plan or ADN Retirement Pension Program. You terminated employment before turning age 55 and will not be at least 59½ years old on November 1, You terminated employment before turning age 55, commence payment of benefit prior to age 59½ and, although you will be 59½ years old or older on November 1, 2015, you will have been receiving pension payments from the Plan for less than 5 years as of that date. Your benefit under the Program, if offered, would exceed certain Internal Revenue Code limits. ELIGIBLE SURVIVING BENEFICIARY You are an eligible surviving beneficiary if you are receiving survivor monthly payments from the Plan as of June 13, 2015, and the former employee with respect to whom you are the surviving beneficiary: Retired on or after March 1, 1990 and before April 1, 2011 with a service pension or disability pension, Was eligible to retire with a service pension or disability pension but died before beginning to receive that benefit (and you began receiving your survivor benefit on or after March 1, 1990 and before April 1, 2011), Terminated employment before January 1, 1998 with the right to a deferred vested pension and commenced receiving that benefit on or after March 1, 1990 and before July 1, 2012, or Terminated employment before January 1, 1998 with the right to a deferred vested pension but died before beginning to receive that benefit (and you began receiving your survivor benefit on or after March 1, 1990 and before July 1, 2012). Notwithstanding the foregoing, you are not an eligible surviving beneficiary if any of the following applies to you: You die before November 1, The former employee with respect to whom you are the surviving beneficiary died on or after January 1, The former employee with respect to whom you are the surviving beneficiary elected to receive a 10-year period-certain and life annuity. All or any portion of the benefit of the former employee with respect to whom you are the surviving beneficiary was derived from the provisions of the Alcatel USA, Inc. Consolidated Retirement Plan or ADN Retirement Pension Program. The only survivor benefit that you are receiving from the Plan is an accident death benefit, a sickness death benefit or a pensioner death benefit. Your survivor benefit under the Plan is or becomes subject to a tax levy or garnishment order. Any portion of your benefit under the Plan is not currently in pay status. 13

16 APPENDICES (continued) APPENDIX B: ALRIP ELIGIBILITY RULES SERVICE-BASED PROGRAM (continued) ELIGIBLE ALTERNATE PAYEE You are an eligible alternate payee if you are receiving monthly payments as an alternate payee from the Plan as of June 13, 2015, you began receiving your alternate payee benefit on or after March 1, 1990 and before January 1, 2014, and the former employee with respect to whom you are an alternate payee: Retired on or after March 1, 1990 and before January 1, 2014 with a service pension or disability pension, or Terminated employment before January 1, 1998 with the right to a deferred vested pension and commenced receiving that benefit on or after March 1, 1990 and before July 1, Notwithstanding the foregoing, you are not considered to be an eligible alternate payee, and you are not eligible for the Program, if any of the following applies to you: You die before November 1, The domestic relations order with respect to which you purport to be an alternate payee is not determined by the Plan Administrator to be a qualified domestic relations order by June 1, The domestic relations order pursuant to which you are an alternate payee has been determined by the Plan Administrator to be a shared interest order. All or any portion of the benefit of the former employee with respect to whom you are the alternate payee was derived from the provisions of the Alcatel USA, Inc. Consolidated Retirement Plan or ADN Retirement Pension Program. Your alternate payee benefit under the Plan is or becomes subject to a tax levy or garnishment order. Any portion of your benefit under the Plan is not currently in pay status. APPENDIX C: ALRIP ELIGIBILITY RULES ALL OTHER PROGRAMS This appendix describes the eligibility rules for former employees, surviving beneficiaries and alternate payees whose benefits are being paid pursuant to the Lucent Pension Program (i.e., individuals whose pension benefits were transferred from the Lucent Technologies Inc. Pension Plan to the Alcatel-Lucent Retirement Income Plan) or whose benefits derive from the former AG Communication Systems Corporation Pension Plan for Certain Union Represented Employees. See Appendix B for the eligibility rules applicable to individuals whose benefits are being paid pursuant to the Service-Based Program of the Alcatel-Lucent Retirement Income Plan or whose benefits derive from the former AGCS Salaried Pension Plan. 14 ELIGIBLE FORMER EMPLOYEE You are an eligible former employee if you are receiving monthly pension payments from the Plan as of June 13, 2015, and either: Retired with a service pension or disability pension on or after March 1, 1990 and before January 1, 2014, or Terminated employment before October 19, 2007 with the right to a deferred vested pension and commenced receiving that benefit on or after March 1, 1990 and before July 1, Notwithstanding the foregoing, you are not eligible for the Program if any of the following applies to you: You die before November 1, You are married and your spouse dies after September 25, 2015 and before November 1, Your current annuity option is a joint and survivor annuity, and your designated beneficiary dies after September 25, 2015 and before November 1, (continues on next page)

17 APPENDIX C: ALRIP ELIGIBILITY RULES ALL OTHER PROGRAMS (continued) (continued) You marry, or remarry, after September 25, 2015 and before November 1, You are employed by any Alcatel-Lucent company as of July 20, 2015 or between July 20 and November 1, Your benefit under the Plan is subject to a domestic relations order that, as of June 1, 2015, has not been determined by the Plan Administrator to be a qualified domestic relations order. Your benefit under the Plan is subject to a qualified domestic relations order that the Plan Administrator has determined to be a shared interest order. Your benefit under the Plan is or becomes subject to a tax levy or garnishment order. Any portion of your benefit under the Plan is not currently in pay status. All or any portion of your benefit under the Plan is derived from the provisions of the Alcatel USA, Inc. Consolidated Retirement Plan or ADN Retirement Pension Program. You terminated employment before turning age 55 and will not be at least 59½ years old on November 1, You terminated employment before turning age 55, commence payment of benefit prior to age 59½ and, although you will be 59½ years old or older on November 1, 2015, you will have been receiving pension payments from the Plan for less than 5 years as of that date. Your benefit under the Program, if offered, would exceed certain Internal Revenue Code limits. ELIGIBLE SURVIVING BENEFICIARY You are an eligible surviving beneficiary if you are receiving survivor monthly payments from the Plan as of June 13, 2015, and the former employee with respect to whom you are the surviving beneficiary: Retired on or after March 1, 1990 and before January 1, 2014 with a service pension or disability pension, Was eligible to retire with a service pension or disability pension but died before beginning to receive that benefit (and you began receiving your survivor benefit on or after March 1, 1990 and before January 1, 2014), Terminated employment before October 19, 2007 with the right to a deferred vested pension and commenced receiving that benefit on or after March 1, 1990 and before July 1, 2012, or Terminated employment before October 19, 2007 with the right to a deferred vested pension but died before beginning to receive that benefit (and you began receiving your survivor benefit on or after March 1, 1990 and before July 1, 2012). Notwithstanding the foregoing, you are not an eligible surviving beneficiary if any of the following applies to you: You die before November 1, The former employee with respect to whom you are the surviving beneficiary died on or after January 1, The former employee with respect to whom you are the surviving beneficiary elected to receive a 10-year period-certain and life annuity. All or any portion of the benefit of the former employee with respect to whom you are the surviving beneficiary was derived from the provisions of the Alcatel USA, Inc. Consolidated Retirement Plan or ADN Retirement Pension Program. The only survivor benefit that you are receiving from the Plan is an accident death benefit, a sickness death benefit or a pensioner death benefit. Your survivor benefit under the Plan is or becomes subject to a tax levy or garnishment order. Any portion of your benefit under the Plan is not currently in pay status. 15

18 APPENDICES (continued) APPENDIX C: ALRIP ELIGIBILITY RULES ALL OTHER PROGRAMS (continued) ELIGIBLE ALTERNATE PAYEE You are an eligible alternate payee if you are receiving monthly payments as an alternate payee from the Plan as of June 13, 2015, you began receiving your alternate payee benefit on or after March 1, 1990 and before January 1, 2014, and the former employee with respect to whom you are an alternate payee: Retired on or after March 1, 1990 and before January 1, 2014 with a service pension or disability pension, or Terminated employment before October 19, 2007 with the right to a deferred vested pension and commenced receiving that benefit on or after March 1, 1990 and before July 1, Notwithstanding the foregoing, you are not considered to be an eligible alternate payee, and you are not eligible for the Program, if any of the following applies to you: You die before November 1, The domestic relations order with respect to which you purport to be an alternate payee is not determined by the Plan Administrator to be a qualified domestic relations order by June 1, The domestic relations order pursuant to which you are an alternate payee has been determined by the Plan Administrator to be a shared interest order. All or any portion of the benefit of the former employee with respect to whom you are the alternate payee was derived from the provisions of the Alcatel USA, Inc. Consolidated Retirement Plan or ADN Retirement Pension Program. Your alternate payee benefit under the Plan is or becomes subject to a tax levy or garnishment order. Any portion of your benefit under the Plan is not currently in pay status. 16

19 RESOURCES AT-A-GLANCE RESOURCE WHEN AVAILABLE WHAT IT IS HOW TO ACCESS Alcatel-Lucent Retiree Lump-Sum Window Benefits Center Available now Call center available with answers to your Program and process questions. Beginning on July 20, this is also one of the ways by which you can make your Program choices. Call ( from outside the U.S.) between 9:00 a.m. and 5:00 p.m., ET, Monday through Friday. Financial and Tax Education Guide Available now Printed brochure giving general tax information and considerations for making a decision Enclosed with this Program Announcement. Financial and Tax Education Tool Available now Online tool that allows you to model the general implications of choosing to convert to a lumpsum payment, based on assumptions you make Go to hewitt. com/alcatel-lucent and click on the Action Needed notice to enter the Program site, click Need Help, and then choose the Financial and Tax Education Tool. Financial and Tax Education Group Sessions Mid-July to mid-september Live or virtual education sessions that provide general information on tax implications and considerations for taking a lump-sum payment Refer to the enclosed Financial and Tax Education Guide for a list of scheduled sessions. Register for a session by calling the Alcatel-Lucent Retiree Lump-Sum Window Benefits Center and saying transfer me when prompted. Your Benefit Decision Kit Mid-July Printed personalized information with your dollar amounts The kit will be mailed to you. If you do not receive it by July 24, call the Alcatel-Lucent Retiree Lump-Sum Window Benefits Center. Your Benefits Resources Website Mid-July Website through which you may make your Program choices Go to com/alcatel-lucent and enter your User ID and password. Click on the Action Needed notice to enter the Program site. Your Benefits Resources is a trademark of Hewitt Associates LLC. 17

20 ALCATEL-LUCENT RETIREE LUMP-SUM WINDOW PROGRAM PROGRAM ANNOUNCEMENT 2015 Alcatel-Lucent