2019 Form W-2 from Alight Solutions BPS

This is the place to talk about pension related issues.

2019 Form W-2 from Alight Solutions BPS

Postby financegrunt » Sat Jan 25, 2020 3:08 pm

I just received my 2019 Form W-2 from Alight Solutions BPS, the Agent of Avaya Inc.

Can anyone tell me why the Wages amount in Box 1 would include an amount for the “Taxable cost of group-term life insurance over $50,000” ?

With our pension now being paid by the PBGC and the second (and final) bankruptcy case distribution having occurred, why do we still have a group-term life insurance link with Avaya?

Thank you to anyone that can help me understand this nuance.
financegrunt
 
Posts: 95
Joined: Fri Feb 03, 2017 4:38 pm

Re: 2019 Form W-2 from Alight Solutions BPS

Postby remberger » Mon Jan 27, 2020 3:01 pm

Hi everyone,

Strange as it may seem, Avaya did not terminate its group life insurance when it terminated our supplemental pensions. In one of my four (unsuccessful) court appearances, the issue of supplemental insurance came up, and Avaya's lawyers said it was not being terminated. I am doing this from memory, but the group life plan pays one times your annual salary if you die before age 65, The amount decreases to 1/2 your annual salary at age 70 and remains constant thereafter, IRS tax rules make the annual premium value for any group life insurance in excess of $50,000 in face value taxable.

I seem to recall seeing somewhere that Avaya had prepaid the insurance premium on the life insurance, so there was no benefit to cancelling it. That said, the point that Judge Bernstein made during that hearing was that the life insurance, as any other benefit, could be canceled at any time outside of bankruptcy.

I hope that helps clarify your issue.

Bob Emberger
remberger
 
Posts: 118
Joined: Sat Jun 17, 2017 5:53 am

Re: 2019 Form W-2 from Alight Solutions BPS

Postby financegrunt » Mon Jan 27, 2020 5:46 pm

Thank you, Bob.

So although Avaya could still cancel the life insurance benefit at any time, in your opinion, does Avaya have an “obligation” to inform retirees (like us) that the group life plan is still in effect?

And, when that day does inevitably occur, how would a beneficiary even know who to contact to collect the proceeds?

By the way, I would certainly not categorize your four court appearances as “unsuccessful.” Far from it. Without your persistence and due diligence for the past few years, we would have been royally screwed over even more by Avaya, the swarm of bloodsuckers (I mean the lawyers) and the worthless Federal Bankruptcy Court (and I mean this).
financegrunt
 
Posts: 95
Joined: Fri Feb 03, 2017 4:38 pm


Return to Pension

Who is online

Users browsing this forum: No registered users and 3 guests

cron