Friday, September 3, 2010

Canadian Webinar 9-1-10 Summary Part 2

Part 2 of the summary of the webinar held by Koskie Minsky / NRPC.

(3) Update on Benefits

Just to remind everyone, Nortel will cease all benefits in Canada on December 31st 2010. That includes health, dental and life insurance benefits.

Nortel will also stop income benefits for survivors of an employee who died while on active Nortel service. (this does not refer to a survivor of a pensioner).

Claims for costs incurred after December 31 will not be covered.

Make sure all claims are submitted before February 28,2011.

The NRPC is working to find an alternative option for retiree medical after Dec 31st, but there is no news on this front as of yet.

Pensioners are urged by the NRPC to explore other options on an individual basis.

Individuals will have a claim against Nortel for the value of lost life insurance and may receive a pro rata distribution through the Compensation Claims Procedure, but this may take years to complete.

(4) Terminated Employees Group

Individuals who are eligible will receive a lump sum payment up to a maximum of $3000.

There are various requirements that you must meet to be eligible.
(a) Employment terminated on or before June 30,2010.
(b) Owed severance or employment termination pay.
(c) Not have been offered employment by one of the purchasers of Nortel’s assets.
(d) Have not received money from a Nortel Bonus, Retention, or Incentive plan or from any court approved equivalent. (Certain limits apply check with K.M.)

Reductions will be made if you already received money from the Termination fund

The payments may be able to be rolled-over as a retirement allowance. K.M. will advise later.

Letters will be sent out in September and payments made in November.

The severance claim process is being worked by K.M.
Individual severance agreements will be confirmed in the first step of the Compensation Claims Procedure. Severance for people without individual agreements will be calculated based on methodology being discussed by K.M. and the other parties.

The Compensation Claims Procedure is expected to take a long time to complete. Most likely it will be years before all the elements are finalized and payment made.

1 comment:

  1. Tom-
    I assume that an additional "requirement" for getting the $3,000 is that you were an employee of Nortel Canada when you were terminated. I'd love $3K as another small offset to my losses, but as a US/California ex-employee I don't expect it.