January, 22, 2019

To: Avaya Retirees Chapter Members of the NRLN
From: Vern Larson, President, NRLN Avaya Retirees Chapter
Subject: Update of Salaried Supplemental Pension Settlement; PBGC Annual Report and Avaya News

Avaya Chapter News - Update of Salaried Supplemental Pension Settlement and PBGC Reports Improved Financial Condition

Thanks to Bob Emberger – Avaya Retiree posted an update below regarding the Bankruptcy settlement of our Salaried Supplemental Pension Plan

"Estimate of final distribution.”

On January 21, 2019, Avaya filed Debtor’s post confirmation settlement report (Docket 2284) . Based on the original settlement document (Docket
2192) and the quarterly report (above), We have enough information to deduce how much we might potentially get in a subsequent distribution.

Based on my previous post, there are $4,489,131 on claims yet to be finalized. At 19.8%, they would use $888,847.93 of the remaining pot if they were upheld in their entirety.
The pot currently has $1,776,799 left in it, so there is an excess of $887,951.  

So if all of the remaining claims are upheld, the final distribution would be about 0.31% or $3.10 per $1,000 of approved claim value. 
If none of the remaining claims are upheld, the final distribution would be 0.63% or $6.30 per $1,000 of approved claim value.

Based on the relatively small amount to be distributed, I would not expect any additional distribution until all claims are settled.

For those who are interested, I have recapped the remaining claims and my calculations below.

Best Wishes,

Bob Emberger


Remaining Claims

Claims with no progress (that I can detect) :     $4,458,370.
There are 5 claims in this group – 2 by Spirent, and one each by SAE Power, Alan Wattenmaker, and the State Board of Equalization. 
The biggest claim in this group is SAE Power which Judge Bernstein estimated at $3,252,182.
At one time, Avaya asked for this claim to be expunged.

Claims with the objection date extended to March 15:   $30,761 There are two claims, both by the state of Tennessee
Calculations: Docket 2192

Approved claims : $254,431,883.05
Reserved claims :  $ 33,501,218.38
Total claims : $287,933,101.43

Payout pot: $ 57,000,000.00
Payout % : 19.796%
Amount dispersed: $ 50,368,010
Amount held back: $ 6,631,990

Quarterly financial report for quarter ending 12/31/18

Total Pot: $ 57,000,000
Amount Dispersed: $55,223,201 (Note 1)
Amount Remaining: $1,776,799
Claims Remaining (per RME estimate): $ 4,489,131 Amount required to service remaining claims: $ 888,680 Excess currently in payout pot: $877,818.

Minimum additional payout: 0.31% = $877,818 / ($254,431,883.05 +
$24,577,823 + $4,489,131)
Maximum additional payout: 0.63% = $1,776,799 / ($254,431,883.05 +
$24,577,823)

Note 1: Implies $4,865,490 paid for claims settled after Docket 2192.
Those claims would be valued at $24,577,823"

 


Good news from PBGC regarding improved financial condition

PBGC Reports Improved Financial Condition 

WASHINGTON - The Pension Benefit Guaranty Corporation’s Fiscal Year 2018 Annual Report, shows improvement in the financial condition of the agency’s Single-Employer Insurance and Multiemployer Insurance Programs.   

Our Avaya Salaried Pension Plan is in the Single-Employer Program which showed a positive net position of $2.4 billion as of September 30, 2018, emerging from a negative net position or “deficit” of $10.9 billion at the end of FY 2017 and continuing a trend of improving results.


The Multiemployer Program showed a deficit of $53.9 billion, reduced from $65.0 billion at the end of FY 2017. Despite this improvement, the Multiemployer Program unfortunately continues on the path toward insolvency, likely by the end of FY 2025. 


The primary driver of the financial improvement in both programs was higher interest rate factors, which reduced the value of PBGC’s benefit liabilities. A strong economy and the absence of new large claims also contributed to the financial improvement.   


“A financially strong pension insurance program that workers and employers can count on is a vital source of retirement security for millions of workers, retirees, and their families,” said PBGC Director Tom Reeder. “The continued improvement in the financial condition of the Single-Employer Insurance Program is a welcome result.


The Multiemployer Insurance Program deficit has narrowed, but it clearly won’t keep the program from running out of money. PBGC continues to work with Congress and the multiemployer plan community to preserve the solvency of multiemployer plans and the Multiemployer Program.”


In the coming years, absent legislative changes, more and larger claims on the Multiemployer Program will lead to the program’s insolvency. If the Multiemployer Program is allowed to become insolvent, PBGC will only be able to pay a small fraction of guaranteed benefits for participants in failed multiemployer plans.

 

PBGC’s two pension insurance programs – single-employer and multiemployer – are designed to protect participants’ pension benefits when plans fail. However, the programs differ significantly in the level of benefits guaranteed, the insurable event that triggers the guarantee, and the premiums paid by insured plans. By law, the two programs are operated and financed separately. Assets of one program may not be used to pay obligations of the other.


Single-Employer Program Records Positive Net Position of $2.4 Billion

The Single-Employer Program had assets of $109.9 billion and liabilities of $107.5 billion as of September 30, 2018. The positive net position of $2.4 billion reflects an improvement of $13.4 billion during FY 2018. The program’s improvement is consistent with PBGC’s recent projections and was accelerated by the continued strong economy, lower than expected claims, and higher interest rates.


In FY 2018, the agency paid $5.8 billion in benefits to more than 861,000 retirees, about the same as last year. During the year, the agency became responsible for 58 single-employer plans that terminated without enough money to provide all promised benefits. These plans cover 28,000 current and future retirees. 


PBGC works collaboratively with plan sponsors to negotiate agreements that protect pensions and premium payers. PBGC protected the pension benefits of about 52,000 people by working with eight companies to maintain their pension plans as the companies emerged from bankruptcy. Additionally, through the Early Warning Program, the agency negotiated over $550 million in financial protection, for about 100,000 people in plans put at risk by certain corporate events and transactions.

 

Multiemployer Program Deficit Narrows to $53.9 Billion but Remains Headed to Insolvency

The Multiemployer Program had liabilities of $56.2 billion and assets of $2.3 billion as of September 30, 2018. This resulted in a deficit of $53.9 billion, down from $65.1 billion last year. The $11 billion decrease in the deficit stems mostly from higher interest rate factors used to measure the value of PBGC’s future payments to insolvent plans.


During FY 2018, the agency provided $153 million in financial assistance to 81 insolvent multiemployer plans, up from the previous year’s payments of $141 million to 72 plans. In the coming years, the demand for financial assistance from PBGC will increase rapidly as more and larger multiemployer plans run out of money and need help to provide benefits at the guarantee levels set by law. Absent a change in law, the assets and future income of PBGC’s Multiemployer Program are only a small fraction of the amounts PBGC will need to support the guaranteed benefits of participants in plans that are currently insolvent as well as those expected to become insolvent during the next decade.


About PBGC’s FY 2018 Financial Report

PBGC’s financial statements are prepared in accordance with generally accepted accounting principles in the U.S. For FY 2018, PBGC received an unmodified audit opinion on its financial statements as well as an unmodified audit opinion on internal control over financial reporting. CliftonLarsonAllen LLP performed the audit under contract with PBGC’s Office of Inspector General, which oversaw the audit. Separately, PBGC publishes a Projections Report each year that illustrates the possible future financial condition of the agency’s two insurance programs.


 

About PBGC: Important!

PBGC protects the pension benefits of nearly 37 million Americans in private-sector pension plans. The agency operates two separate insurance programs — one covering pension plans sponsored by a single-employer (ours Avaya was a single employer pension plan) and another covering multiemployer pension plans, which are sponsored by more than one employer and maintained under collective bargaining agreements. Teamsters, Construction Trades, etc. PBGC is currently responsible for the benefits of about 1.5 million people in failed pension plans. PBGC receives no taxpayer dollars. Its operations are financed by insurance premiums, investment income, and, for the Single-Employer Program, assets and recoveries from failed single-employer plans. For more information, visit PBGC.gov.


Avaya: On-Premise To Cloud Transition Can help the company drive new customers along with NG911 Location Reporting Solution.

Avaya Introduces Enterprise Public Safety Breakthrough: First Integrated Next Generation 911 Location Reporting Solution for Emergency Response

01-22-2019
AUSTIN, Texas--(BUSINESS WIRE)-- Avaya ENGAGE® 2019 –

Avaya Holdings Corp. (NYSE: AVYA) today announced unprecedented, life-saving device location reporting capabilities that are now available as part of Avaya communications solutions for emergency response management, providing real-time information that can help make the difference in life or death situations.

Avaya communications solutions are the first to provide location discovery for devices and place that data into a national Next Generation 911 (NG911) repository, making that information readily available to first-responders, helping enable them to more accurately locate the position of the caller’s device as well as access additional critical information when calls are made from an Avaya communications system. This unique integration allows Avaya solutions to directly provide public-safety answering points (PSAP) with accurate, real-time location, floor-plans and other critical information that could help save lives.

“In situations where every second counts, seamless communication and the sharing of high-fidelity data can make the difference between life and death,” said Mark J. Fletcher, ENP and Chief Architect for Worldwide Public Safety Solutions, Avaya. “Everyone across the continuum of care needs real-time access to information and to each other to make certain each individual in distress receives optimal care. As the company that provides innovative ways for people to work and communicate from anywhere on any device, we are able to deliver a solution with these advanced emergency calling capabilities to help ensure their safety wherever and however they are connected.”

Across the country, 911 dispatchers in more than 6,100 emergency contact centers or PSAPs are working with underlying technology that was created in the landline era and optimized for people calling 911 from traditional landlines, thus creating a significant communication gap for today’s emergency response personnel.

“Proper routing of 911 calls, and providing accurate caller location to emergency services operators are the fundamental components of a successful enterprise 911 strategy,” said Irwin Lazar, Vice President and Service Director at Nemertes Research. “With soft client adoption increasing by 30 percent, and mobile UC clients by 34 percent, by the end of 2019, Avaya’s solution addresses a growing market need to ensure accurate location identification of 911 callers from any device.”

Avaya communications solutions deployed with SENTRY™ NG911 are available today for organizations of all sizes direct from Avaya or through Avaya Business Partners, utilizing the new capabilities recently added to the U.S. Emergency Network. Avaya solutions are the first to place user-specific location information from a commercial network in an additional data repository. Using this additional data repository, public safety agencies are able to retrieve additional data and use the information to enhance the response to an emergency incident. Primarily, this allows the addition of high-fidelity location information, in real time, that existing carrier databases are not capable of providing.

When a 911 call is received by a 911 PSAP the emergency response systems query the repository for additional information such as precise location information, that they otherwise wouldn’t have.

Avaya enterprise emergency solutions also include the Avaya Cloud Notification System, which enables fast, automated notifications via voice, text or various combinations to large groups of people who need to be alerted with the accurate information that is relevant during an emergency event. Using integrated active databases, alerts can be sent to parents, community members or other registered emergency contacts, providing instructions or other important information that is critical in times of need.

NEWS FOR AVAYA MEMBERS

Click here for Avaya Holdings Corp. press releases

 

Avaya Announces Chief Financial Officer Transition
Avaya Press Release – Feb 11, 2019

Avaya Reports First Quarter Fiscal 2019 Financial Results
Avaya Press Release – Feb 11, 2019

Avaya Brings Back IBM, AT&T Vet to Drive Services Adoption
By Edward Gately; Channel Partners ~ Apr 06, 2018

Mobile at EC18: Avaya Shakes Up the Service Provider Business
By Michael F. Finneran: No Jitter ~ Mar 30, 2018

Avaya Creates Unique Mobile CX Solution
By Sheila McGee-Smith; No Jitter ~ Mar 12, 2018

Avaya emerges from Chapter 11 after restructure
By James Pearce; Global Telecoms Business ~ Dec 18, 2017

Avaya to pay PBGC $340 million as part of restructuring agreement
By Hazel Bradford; Pensions & Investments ~ Nov 29, 2017

U.S. judge clears Avaya Inc to exit bankruptcy
By Jim Christie; Reuters ~ Nov 28, 2017

S&P 500’s Biggest Pension Plans Face $382 Billion Funding Gap
By Brandon Kochkodin and Laurie Meisler, Bloomberg - Jul 20, 2017

Extreme Networks Completes Acquisition of the Networking Business from Avaya, Inc.
Avaya Press Release – Jul 17, 2017

Avaya, bankruptcy and the state of the changing communications market
By Justine Brown; CIO Dive ~ May 23, 2017

Avaya sells networking business to Extreme Networks for $100 million
By Natalie Gagliordi ; ZDNet ~ Mar 07, 2017

Avaya's Chapter 11 filing sends waves of disruption
By Guy William Clinch, NetworkWorld - Feb 10, 2017

Legally & Practically: What Avaya's Chapter 11 Means to Customers
By Marth Buyer, No Jitter - Feb 8, 2017

Avaya Partners Relieved by Chapter 11 Filing, Decision Not to Sell Call-Center Business
By Edward Gately; Channel Partners ~ Feb 01, 2017

Avaya granted $425m loan from US court
By James Pearce; Capacity Media ~ Jan 23, 2017

Avaya files for Chapter 11 bankruptcy, won't sell contact center assets
By Larry Dignan, zdnet - Jan 19, 2017

Telecom Company Avaya Files for Bankruptcy
Reuters report in Fortune – Jan 19, 2017

Multibillion-dollar phone firm deal may fall apart
By Josh Kosman, New York Post - Jan 4, 2017


Avaya Q4 2018 Financial Results - January 2019

Click here to review text and graphics on Avaya's 4th Quarter 2018 Financial Results.


 

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Vern Larson, President,
NRLN Avaya Retirees Chapter
Phone 402-203-6899 Email vernlarson@cox.net

If you know any other Avaya Retirees who are not signed up yet or any current vested Avaya employees or retired vested not yet collecting their pensions please send them the link below and ask them to join the NRLN Avaya Retirees Chapter. All those who have selected the survivor benefit for their pension should have the beneficiary sign up as well to the Chapter at:
http://www.123contactform.com/form-2450889/Avaya-Contact-Registration-Form


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