The following story was published in the Dallas Morning News today:
05:37 PM CST on Friday, January 7, 2011
By STEVE BROWN / The Dallas Morning News
stevebrown@dallasnews.com
One of the biggest suburban office campuses in the Dallas area is up for grabs. Real estate brokers at CB Richard Ellis have been hired to market the more than 800,000-square-foot former Nortel headquarters on North Central Expressway in Richardson.
The two-building Telecom Corridor complex includes a 16-story tower and a three story, almost 400,000-square-foot research and development center. Most of the high profile property is now vacant. Owner Nortel Networks has been in bankruptcy for the last year.
“It’s an orderly bankruptcy liquidation, and everything is being approved through the court,” said Gary Carr, executive vice president in CB Richard Ellis’ investment property division. “We are going to try and get it moved by April.”
International defense and high-tech conglomerate Raytheon Corp. recently looked at buying the property. But the deal never closed. “Raytheon was very close to consolidating and taking the building at one point,” Carr said. “It’s the largest block of office space like this in the Metroplex.
“It represents one of the best corporate relocation potentials in the area,” he said.
The buildings were constructed in 1991 and at one time housed thousands of Nortel workers. They are within walking distance of a DART light rail station. Ericsson and Avaya Inc. currently lease about 30 percent of the buildings. Carr, who’s working on the sale with CB Richard Ellis’ Russell Ingrum, Jack Fraker and Josh McArtor, said the plan is to sell both buildings to the same buyer. “It’s a landmark that stands out architecturally,” Carr said.
Monday, January 10, 2011
Saturday, January 8, 2011
Georgia's New Tax Plan will negatively impact seniors
Currently in Georgia, seniors may earn up to $30,000 from pensions or retirement savings interest without paying state taxes on it. This ruling was put in place to help seniors survive on a fixed income. It was also meant to attract out of state seniors who might otherwise consider moving to tax free states like Florida,Tennessee, or Texas to retire in.
Now a new plan is being proposed that would eliminate that exemption, and also add a new state sales tax to life necessities such as groceries.
The new Georgia tax proposal is simply a ruse to increase taxes on seniors and the poor, and give tax breaks to businesses and the wealthy. It means a huge reduction in disposable income for seniors, and a jump in the cost of living that will not be reflected in any social security increase. Is this what they mean by fair tax?
With the rush of Georgia to become a single party state with a business first attitude, and a focus only on the desires of the rich and their lobbyists, who is going to speak for and protect the old, the weak and the poor, a cultural value that our country used to pride itself on?
With this Georgian attitude, Florida looks better all the time to the large and growing population of Georgia seniors. How is it going to help Georgia when all the money they spend moves south?
Now a new plan is being proposed that would eliminate that exemption, and also add a new state sales tax to life necessities such as groceries.
The new Georgia tax proposal is simply a ruse to increase taxes on seniors and the poor, and give tax breaks to businesses and the wealthy. It means a huge reduction in disposable income for seniors, and a jump in the cost of living that will not be reflected in any social security increase. Is this what they mean by fair tax?
With the rush of Georgia to become a single party state with a business first attitude, and a focus only on the desires of the rich and their lobbyists, who is going to speak for and protect the old, the weak and the poor, a cultural value that our country used to pride itself on?
With this Georgian attitude, Florida looks better all the time to the large and growing population of Georgia seniors. How is it going to help Georgia when all the money they spend moves south?
Thursday, January 6, 2011
Canada's ill treatment of disabled.
The following was sent to me by Diane Urquhart who is fighting to help the Nortel Disabled as they face incredibly inhumane treatment by the Canadian government and the bankruptcy courts.
A most telling statistic is the picayune benefits provided by Canada as compared to more humane countries like the UK and the US.
For example a disabled parent with 2 children receives annually:
In Canada $18,408.
In the USA $48,780.
In the UK $47,509.
What has happened to Canada? Where is your conscience? Your government has apparently turned you into a bunch of right-wing money grubbing capitalists with no compassion. That's not the Canada I knew. Time for Canadians to waken up.......
Article follows:
Nortel employees seek legal clarity around health and welfare trust
Diane Urquhart | January 05, 2011
The dissenting disabled employees of Nortel have filed a leave to appeal to the Court of Appeal of Ontario to gain a last minute reprieve from the life of poverty and medical crisis they feel they will face now that their health and welfare trust (HWT) has been terminated, a move that went into affect on Jan.1, 2011.
A decision on whether the appeal will be heard is expected to come soon.
Many Canadians with disabilities live in poverty due to grossly inadequate Canada Pension Plan (CPP) disability income. A single person with a disability receives a maximum of $13,521 per year. A disabled parent with two children receives only a maximum of only $18,408 per year. Nortel disabled employees have average medical costs of $7,200, with one at $50,000 per year.
These benefits are under par when compared to benefits in the U.S. and U.K. In the U.S, a disabled person with two children gets $48, 780 per year from Social Security and the U.K. Pension Protection Fund provides for $47,509 a year.
This appeal will define whether vested pensioner life insurance benefits are the legal obligation of the employer or of the legally distinct HWT. If the court precedent is for vested pensioner life insurance benefits to be legal obligations of an HWT, 1.1 million Canadians in self-insured disability income plans had better opt out of their employer plans and seek personal disability insurance coverage.
The actuarial liabilities for disability income are always a small proportion of the total actuarial liabilities for pensioners vested life insurance benefits and disability income due to only 0.9% of the workforce is disabled. HWT’s are generally not fully funded. When deficient HWT assets are used to pay both pensioners life insurance and disability income on an HWT termination, the disabled get deeply compromised.
In his Nov. 9, 2010 decision, the Nortel Companies’ Creditors Arrangement Act judge, Justice Geoffrey Morawetz, added the following words to interpret the meaning of future benefits in the 1980 Nortel HWT Trustee Agreement termination clause: “claims that would certainly have been made in the future.” The termination clause says: “The trustee shall also determine on a sound actuarial basis the amount of money necessary to pay and satisfy all future benefits and claims to be made under the plan in respect of benefits and claims up to the date of notice of termination.”
The added words allow a lump-sum payment of $3,500 each to the 10,000 living pensioners from the HWT. The 400 disabled are left with a lump-sum settlement from the HWT that funds just 27% of their disability income until age 65, death or recovery.
The leave to appeal asks that legal interpretation of “future benefits and claims” be made in the context of “incurred claims.” Under accepted insurance and actuarial principles and practices, future benefits relate only to incurred claims for insured events that have already occurred prior to the termination of the contract. Deaths benefits for living pensioners are not incurred claims, because the insured event of death has not occurred prior to the termination of the HWT.
Justice Geoffrey Morawetz’s Nov. 9, 2010 Nortel HWT decision conflicts with Canada Revenue Agency (CRA) rules for HWTs. The income tax act has had a clause since 1979, of no tax deduction for employer contributions paying for life insurance beyond the current year. The Nortel HWT has always had pensioners’ group one-year term life insurance policies that are automatically terminated upon Nortel’s receivership or bankruptcy. CRA ruling documents clearly say that HWT’s have no liability for future life insurance premiums and must not have a permanent surplus.
On the other hand, future disability income is part of the incurred claim from the onset of disability before the HWT’s termination. According to a 1979 CRA interpretation bulletin, a self-insured disability wage loss replacement plan is to operate on insurance principles and like “an insurance plan.” So, the HWT does have a legal obligation to pay the future income of the disabled beneficiaries.
The 1998 Canadian Pacific Railway law case reinforces that HWT assets funding future disability income are not a contingent reserve, but a legal obligation.
It is surprising that income tax act rules for HWTs, which are a CRA defined vehicle, have been ignored by Justice Geoffrey Morawetz and the counsel representing the employer, court monitor, pensioners, and the disabled and continuing employees.
The appeal will clarify whether income tax rules for HWTs and insurance and actuarial principles and practices may be ignored in the interpretation of HWT trustee agreements.
Diane A. Urquhart is an independent financial analyst working as a financial expert in class actions, bankruptcy proceedings and governments hearings on legislative reform and regulatory enforcement of securities, pension plans and health and welfare trusts.
A most telling statistic is the picayune benefits provided by Canada as compared to more humane countries like the UK and the US.
For example a disabled parent with 2 children receives annually:
In Canada $18,408.
In the USA $48,780.
In the UK $47,509.
What has happened to Canada? Where is your conscience? Your government has apparently turned you into a bunch of right-wing money grubbing capitalists with no compassion. That's not the Canada I knew. Time for Canadians to waken up.......
Article follows:
Nortel employees seek legal clarity around health and welfare trust
Diane Urquhart | January 05, 2011
The dissenting disabled employees of Nortel have filed a leave to appeal to the Court of Appeal of Ontario to gain a last minute reprieve from the life of poverty and medical crisis they feel they will face now that their health and welfare trust (HWT) has been terminated, a move that went into affect on Jan.1, 2011.
A decision on whether the appeal will be heard is expected to come soon.
Many Canadians with disabilities live in poverty due to grossly inadequate Canada Pension Plan (CPP) disability income. A single person with a disability receives a maximum of $13,521 per year. A disabled parent with two children receives only a maximum of only $18,408 per year. Nortel disabled employees have average medical costs of $7,200, with one at $50,000 per year.
These benefits are under par when compared to benefits in the U.S. and U.K. In the U.S, a disabled person with two children gets $48, 780 per year from Social Security and the U.K. Pension Protection Fund provides for $47,509 a year.
This appeal will define whether vested pensioner life insurance benefits are the legal obligation of the employer or of the legally distinct HWT. If the court precedent is for vested pensioner life insurance benefits to be legal obligations of an HWT, 1.1 million Canadians in self-insured disability income plans had better opt out of their employer plans and seek personal disability insurance coverage.
The actuarial liabilities for disability income are always a small proportion of the total actuarial liabilities for pensioners vested life insurance benefits and disability income due to only 0.9% of the workforce is disabled. HWT’s are generally not fully funded. When deficient HWT assets are used to pay both pensioners life insurance and disability income on an HWT termination, the disabled get deeply compromised.
In his Nov. 9, 2010 decision, the Nortel Companies’ Creditors Arrangement Act judge, Justice Geoffrey Morawetz, added the following words to interpret the meaning of future benefits in the 1980 Nortel HWT Trustee Agreement termination clause: “claims that would certainly have been made in the future.” The termination clause says: “The trustee shall also determine on a sound actuarial basis the amount of money necessary to pay and satisfy all future benefits and claims to be made under the plan in respect of benefits and claims up to the date of notice of termination.”
The added words allow a lump-sum payment of $3,500 each to the 10,000 living pensioners from the HWT. The 400 disabled are left with a lump-sum settlement from the HWT that funds just 27% of their disability income until age 65, death or recovery.
The leave to appeal asks that legal interpretation of “future benefits and claims” be made in the context of “incurred claims.” Under accepted insurance and actuarial principles and practices, future benefits relate only to incurred claims for insured events that have already occurred prior to the termination of the contract. Deaths benefits for living pensioners are not incurred claims, because the insured event of death has not occurred prior to the termination of the HWT.
Justice Geoffrey Morawetz’s Nov. 9, 2010 Nortel HWT decision conflicts with Canada Revenue Agency (CRA) rules for HWTs. The income tax act has had a clause since 1979, of no tax deduction for employer contributions paying for life insurance beyond the current year. The Nortel HWT has always had pensioners’ group one-year term life insurance policies that are automatically terminated upon Nortel’s receivership or bankruptcy. CRA ruling documents clearly say that HWT’s have no liability for future life insurance premiums and must not have a permanent surplus.
On the other hand, future disability income is part of the incurred claim from the onset of disability before the HWT’s termination. According to a 1979 CRA interpretation bulletin, a self-insured disability wage loss replacement plan is to operate on insurance principles and like “an insurance plan.” So, the HWT does have a legal obligation to pay the future income of the disabled beneficiaries.
The 1998 Canadian Pacific Railway law case reinforces that HWT assets funding future disability income are not a contingent reserve, but a legal obligation.
It is surprising that income tax act rules for HWTs, which are a CRA defined vehicle, have been ignored by Justice Geoffrey Morawetz and the counsel representing the employer, court monitor, pensioners, and the disabled and continuing employees.
The appeal will clarify whether income tax rules for HWTs and insurance and actuarial principles and practices may be ignored in the interpretation of HWT trustee agreements.
Diane A. Urquhart is an independent financial analyst working as a financial expert in class actions, bankruptcy proceedings and governments hearings on legislative reform and regulatory enforcement of securities, pension plans and health and welfare trusts.
Subscribe to:
Posts (Atom)