Wednesday, August 25, 2010

NRPC Canadian Newsletter 8-24-10 Part 2 Claims Process and HWT benefits

Some more information summarized from the recent NRPC newsletter. I will post another summary tomorrow on the political content of the newsletter.

The Claims Process: Part 1: (All claims except registered pension)

The claims process for former Nortel Canadian employees that includes claims such as: Health Benefits, Life Insurance, TRA/RAP, SERP, Severance, Survivor Income Benefit, etc. will be discussed in a webinar to be held on Wed. Sept. 1st @ 3:00 pm. Check the NRPC and Koskie Minsky web pages for details. The claims are to be tabled in court in the fall timeframe.

In the next few weeks you will receive information from Koskie Minsky about your claim. Please note that you will get an opportunity to comment on the major inputs for your claim; age, spouse, dependents, etc. but will not be privy to the detailed actuarial calculations that determine the benefit.

The Claims Process: Part 2: (Registered pension claims)

The claims process for the registered pension plans is spearheaded by FSCO and will happen under the guidance of the Ontario Superintendent of Pensions. Nortel has issued a placeholder claim for the pension shortfalls.

Recent Health and Welfare Trust (HWT) Developments

A motion regarding the distribution from Nortel's Health and Welfare Trust ("HWT") is scheduled for the end of September. Materials will be filed in Court by the end of August.

Because there is uncertainty in the wording of trust documents relating to Nortel's HWT, separate legal counsels will represent the pensioner and former employee group, and the disabled group.

Mr. William Pepall of Lerners LLP will represent the pensioner and former employee group on the HWT distribution.

The disabled employee group has retained independent counsel, Sack Goldblatt Mitchell LLP, to advise and represent them on the HWT distribution.

KM will not represent any parties for the allocation and distribution of the HWT assets, however they will continue to represent the pensioners and former employees with respect to all other matters pertaining to Nortel's CCAA proceedings until any further Order of the Court.

Health Coverage Replacement

The option to use future health claims to offset the start-up of a group health insurance plan was found to be too complex to implement and is now off the table.

The current approach is to establish a replacement health plan through insurance providers. The goal is to ensure no lapse in coverage when the current plan ends at the end of this year. A key aspect is the ability to convert to the new plan without the need for medical assessment. Because the new plan will not be employer-sponsored, premiums will be charged to obtain coverage, however it's too early to estimate the individual costs.

The current health care plan terminates as of Dec. 31, 2010. Health expenses up to that date will be processed by Sun Life only until Feb. 28, 2011. Make sure you file on time.

Life Insurance Update

Life insurance coverage will cease on Dec. 31, 2010. The possibility of rolling over current coverage to a new plan without medical assessment but with you paying the premiums is being investigated. The NRPC expects to have more news in the September newsletter.

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