Avaya Chapter of the NRLN
Social Security COLA
Will be 2.8% for 2026
The Social Security Administration (SSA) has made a significant announcement. On Friday, October 24, they revealed a 2.8% Cost-of-Living Adjustment (COLA) for 2026. This increase, though delayed due to the federal government shutdown, is a crucial update for all retirees.
While the COLA increase for January will add about $56 to an average monthly benefit of $2,071, it’s important to note that the standard Medicare Part B premium will also rise. This increase, expected to be $ 21.50, will require careful financial planning to ensure the full benefit of the COLA is realized.
Many seniors with Medicare Advantage plans are likely to learn their healthcare insurance provider is increasing deductibles, copays, and the maximum out-of-pocket cost. The drug deductible— the amount you pay up front before coverage kicks in—is growing for many Medicare Part D plans. Also, in several plans, medications that now have a flat copayment will next year require “coinsurance,” a percentage of the medication’s total cost.
Michael Ryan, a finance expert and the founder of MichaelRyanMoney.com, was quoted in a Newsweek article that seniors have lost 20 percent of their purchasing power in Social Security payments since 2010, as COLA routinely lags actual inflation.
It’s worth noting that the current COLA is based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). The NRLN is advocating for a change to the Consumer Price Index for the Elderly (CPI-E), which better reflects older Americans’ spending patterns, including high medical costs. This change could potentially provide seniors with a slightly larger COLA, offering hope for a more accurate and beneficial system.
The maximum amount of a worker’s earnings subject to Social Security tax will increase by 4.8%, from $ 176,100 in 2025 to $184,500, and the earnings threshold will remain at $7,200. This means that 6% more wage earners will now have to pay more than they did in 2025. The maximum is based on changes in the national average wage index, not CPI-W.
Vern Larson, President
Avaya Chapter of National Retiree Legislative Network
April, 2023
Dear Avaya Chapter Members:
See below message from Alan Masarek, Avaya CEO. I have highlighted some things that he sent out that states we can expect more changes to come that could affect us and our future benefits. The New Avaya company owners will be making the decisions going forward.
Vern Larson, Avaya Chapter President
Changes that could affect future benefits:
Vern Larson, (right) meets with Nebraska U.S. Senator Pete Rickets
Vern Larson, President, Avaya Retirees Chapter, and NRLN Board Member, meets with Nebraska U.S. Senator Pete Rickets at Gretna (NE) America Legion Post 216 fish fry dinner on March 17, 2023. Vern was at the table with Senator Rickets, Gretna Mayor Mike Evans and Post Commander Dave Harris.
Avaya files for bankruptcy, draws $780M in new financing
By Jason Aycock, Seeking Alpha – Feb. 14, 2023
Avaya Holdings (NYSE:AVYA) has filed for Chapter 11 bankruptcy, pursuing a prepackaged plan to cut its debt and shore up the balance sheet as it had signaled in recent weeks.
The company said its Restructuring Support Agreement has support of more than 90% of its secured lenders, and that the agreement should allow for an expedited restructuring it can complete in 60 to 90 days with no disruption to paying vendors, suppliers or employees.
The move will cut total debt by more than 75% – to about $800M from a current $3.4B. The resulting balance sheet will have less than 1x net leverage, Avaya said.
It’s received commitments for $628M in debtor-in-possession financing, including a $500M new-money term loan, and a $128M ABL facility – both of which will roll into exit facilities once the restructuring is complete.
Some in the investor group have committed $150M in additional new-money financing at exit, meaning a total committed financing of $780M.
Avaya also said it has extended and expanded its partnership with RingCentral (NYSE:RNG). It will continue to act as the exclusive sales agent for direct and partner sales of Avaya Cloud Office, and be compensated in cash as those seats are sold.
“Strengthening Avaya’s capital structure is a critical step to fully realize our transformation, and we are excited to move ahead as a well-capitalized company with one of the strongest balance sheets in our industry that includes substantial cash to invest in our own success,” said Avaya CEO Alan Masarek.
- Click here for a complete listing of Avaya Holdings Corp. press releases.
- Click here to access one particular press release that covers how the Avaya -Work-from-Anywhere solutions that is helping people work remotely during the quarantine.
- Click here for another press release related to COVID-19
Avaya Represented (Union) Pension Plan – Annual Funding Notice was recently mailed to those covered
There was no major change in funding as the Moving Ahead Act from 2014 is still in effect. This allows the company to use a more generous interest rates to attain getting closer to full funding by spreading out the time a little longer. There is also some relief to allow a delay for annual funding this year due to COVID-19 if a company meets certain thresholds, so Avaya will most likely be doing that. Many companies have already issued notices that they will be doing this. The law allows them to postpone funding in 2020 but will need to pay it in 2021 with interested incurred.
Avaya Represented (Union) Pension Plan funding
The plan is underfunded but not to the extent that any action is required by the company or by any outside body. The Avaya fund still has the backstop of the PGBC. I don’t think there is any question that all those in this plan will get their pensions. If Avaya were to ever become a huge success and fully fund this pension plan, they could end the plan by paying out the annuity funding to the individuals in the plan. However, we don’t see that happening. If Avaya were to go broke then the PGBC still comes in to protect the individual getting a pension just as they did for our Salaried Penson Fund during the past Avaya Bankruptcy settlement.
The Avaya Represented Pension Plan as of end of March had a little over 1,800 terminated vested participants not aged in yet and roughly 4,200 in pay status.
I want to remind everyone to make sure they provide address changes to the pension center when they occur and also if they are age 65 or over, they need to call the pension center to start their benefits. Avaya currently has about 70 that have not started taking their vested pensions yet. (If you know anyone that is vested in this category tell them to contact Avaya Pension Center.)
- For pension or NCS issues contact the Pension Service Center at 1-844-868-6236.
- For healthcare enrollment or eligibility issues contact Avaya Healthy Decisions Benefits Center at 1-800-526-8056.
- For urgent benefit issues, email benefits@avaya.com
- VIA Benefits, Avaya – 1-855-535-7157
- This is the sign-in page – https://my.viabenefits.com/account/signup
Closing Comments
In closing, I hope all of you and your families stay well and also to remind you that the NRLN Annual appeal letter was mailed to all members a couple of weeks ago. Please help us with what you can to continue our next big fight regarding equal treatment for regular Medicare members as those provided to Medicare Advantage members. If you don’t have your letter you can contribute at this link here, Contribute to the NRLN. If you have already made your 2020 contribution, thank you. Remember, make sure to note that you are an Avaya retiree.
Best regards,
Vern Larson, President
NRLN Avaya Retirees Chapter and
NRLN Vice President -Membership Development
Avaya Q4 2018 Financial Results – January 2019
*Note: SaaS is a method of software delivery and licensing in which software is accessed online via a subscription, rather than bought and installed on individual computers. Avaya’s cloud-based SaaS platform helps IT professionals strategically manage and forecast IT costs (also known as subscribeware or rentware).
