Alcatel-Lucent 401K Error Affecting 2010-2011 New Hires

To:  Installation Local Presidents:

During a routine internal review of the Lucent Technologies Inc. Long Term Savings and Security Plan (LTSSP), it was discovered that some employees or former employees of Alcatel-Lucent, who are/were enrolled in the LTSSP, immediately began to receive Company Matching Contributions in violation of the Plan.  As required by the LTSSP plan document, participants are not eligible for Company Matching Contributions until they have completed six months of eligible service.  This error occurred in 2010 and 2011.

Based on IRS Revenue Procedures, Alcatel-Lucent will be reducing the LTSSP account of those individuals who are affected by an amount that represents the Company Matching Contributions they received in error.  The affected participants will be able to see the corrected account balance via NetBenefits (www.401k.com) after July 15, 2011. After the account is reduced, Alcatel-Lucent will make an adjustment for earnings or losses using the IRS Underpayment Rate, which will be reflected in the account by August 31,2011. 

If you have any questions, please contact the Fidelity Service Center at 800-410-4015.

In Unity,

Laura Unger
Staff Representative