Sunday, January 16, 2011

Objection to NNI taking over deferred compensation trust

On December 22, 2010 Nortel filed a motion before the court as outlined in docket 4638 to seek relief regarding the "rabbi" trust that holds the funds placed in there by Nortel employees who thought they were deferring salary to be paid to them at a later date out of the trust.

Unfortunately the trust was established in such a way that Nortel could take back the funds without any fear of legal action by the employees who had, in good faith, placed part of their compensation into the trust.

A number of employees have been receiving monthly or quarterly payouts from that trust believing that it was secure and was their own money. After all they had earned it and had simply placed it into the trust to be deferred until a later date. The money is not a severance, nor a pension, nor a promise. it is actual earnings that they owned, not Nortel.

However the sneakiness of the "Rabbi" trust system allows Nortel to plunder it without repercussion and take it away from the people it belongs to. All legal.

One person so far has objected formally to this plunder. See docket 4710 published on January 13th 2011.

I suggest that others who are impacted by this also place objections before the court. It may cause some re-thinking.

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