Nortel US Retiree Medical Insurance Renewal

Nortel has sent out a letter to US employees and retirees who are currently registered on the Nortel Medical Insurance Plan. The letter is the annual renewal notification with details on premium pricing.

For retirees there will be a change in the billing method. For those who have had the premium deducted from their pension they will have to start sending payments to Ceridian Benefits Billing Services starting in 2010. This is due to the fact that the PBGC will be taking over the US pension payments and do not include an option to automatically deduct the premium cost from the monthly payment.

You can check this out and more at the Nortel Medical health site shown on the links shown on this page. Or you can go directly to the retiree plan using the following address in your browser:

https://www.nortelhealthn-site.com/english/images/stories/AE_GuideForRetireesFINAL_20091005.pdf

Here is the information provided on the site for the billing:
Premium Billing

As announced in a letter sent to your home from the US Pension Benefit Guaranty Corporation (PBGC) in September, the PBGC has assumed responsibility for the US Retirement Income Plan (also known as the U.S. Defined Benefit Pension Plan). As indicated in the letter, the PBGC will be administering the pension plan and paying benefits from the US Retirement Income Plan fund in accordance with the Nortel plan documents and applicable law. However, the PBGC will not be deducting medical plan premiums from the monthly payments. Consequently and in preparation for the PBGC administering pension payments in 2010, Ceridian Benefits Billing Service (BBS) will begin billing you for your monthly premiums starting with the November 2009 premium. You will receive a bill from BBS mid October with instructions on payment submission. Payments to BBS will be due the first day of each month (beginning with the November 1, 2009 payment) and considered late the last day of the same month. We strongly encourage you to pay your premiums to BBS promptly and as directed on the BBS invoice as failure to pay the full invoice amount by the grace period due date on the BBS invoice will lead to cancellation of your Nortel retiree medical coverage with no reinstatement rights. Please note BBS offers an automatic bank draft for your convenience and assurance your premiums are paid on time. Directions on automatic bank drafts can be found on the back of the BBS invoice.

If you previously had your premiums deducted from your Nortel Networks pension check (issued by the pension plan Trustee, Northern Trust) and have not received an invoice from BBS by October 1, 2009 or have questions about billing, auto draft, etc. please call Ceridian directly at 1- 800/995-9935 to make sure you are properly set up to pay the premiums directly to BBS. For questions related to the PBGC assuming responsibility for the pension plan please call PBGC directly at 1-800-400-7242 or (202) 326- 4000 or visit the PBGC website at www.pbgc.gov for complete contact information including email options.