Avaya Represented (Union) Annual Funding Notice Information
All Avaya Represented (Union) employees should have received your Annual Funding Notice (AFN)
This is the first year that we have received the most current numbers for this report. This data is now only 4 months old. In the past, the AFN data would be 16 months old.
Every pension plan must establish a funding policy to meet its objectives. The funding policy relates to how much money is needed to pay promised benefits. The Plan’s funding policy is to contribute no less frequently than annually, an amount at least equal to the minimum contribution required by law. Avaya LLC may, at its discretion, contribute amounts in excess of the minimum required Contribution
This new AFN format was brought about by our NRLN’s work with the U.S. Senate’s Committee on Health, Education, Labor, and Pensions (HELP) in 2022 and appears in the Annual Funding Notice being sent to pension plan beneficiaries this year.
The NRLN worked with the committee staff of Washington Senator Patty Murray, who was then Chair of the HELP Committee. The NRLN’s proposal to make AFN information clearer and timelier was included in a bill introduced by Senator Murray and later incorporated into another Senate pension bill. The Senate passed the pension legislation as part of the omnibus appropriations bill.
In addition, the adopted NRLN’s AFN earlier proposal simplified the document by moving all relevant data to a table on the front page. The table shows current and past two years of plan participants; plan assets and liabilities; company funding obligations and contributions; interest rates used to calculate funding levels, and rate of return on plan investments over a three-year period.
It should be noted that many Pension Plan sponsors are continuing to eliminate their pension plan responsibilities by purchasing annuities from insurance companies. This transfers responsibility for the execution of the pension payments to an insurance company and “de-risking” the company’s responsibilities.
I have listed below some interesting highlights of the Avaya notice.
Vern Larson, President
Avaya Retirees Chapter – NRLN
| Number of Avaya Represented (Union) participants and beneficiaries on the last day of the relevant plan year | |||
|---|---|---|---|
|
1. Last day of relevant plan year: |
December 31, 2025 |
December 31, 2024 |
December 31, 2023 |
|
2. Participants currently employed |
127 |
218 |
238 |
|
3. Participants and beneficiaries
receiving benefits |
3,835 |
3,928 |
3,969 |
|
4. Participants and beneficiaries who are entitled to future benefits
(but not receiving benefits) |
1,521 |
1,492 |
1,558 |
|
5. Total number of covered
participants and beneficiaries |
(Lines 2 + 3 + 4 = 5) |
|
|
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
