Friday, October 1, 2010

More detail on Morneau Sobeco and the wind up process.

The following web sites provide aditional information about Morneau Sobeco, the Nortel Canada Pension plan administrator.

I have copied some of the information on the wind up process below and you can check other information on th M.S. site in terms of FAQs etc.

https://www.pensionwindups.morneausobeco.com/

https://www.pensionwindups.morneausobeco.com/en/windup_faqs.asp

https://www.pensionwindups.morneausobeco.com/en/windup_process.asp

Wind Up Process:

Initial stage
During the initial stage of our administration, we:

■gather documentation and records;
■become familiar with all aspects of the pension plan;
■inform members and interested parties of our appointment; and
■assume responsibilities for the administration of the pension fund.

Please note, there will be no interruption of pension payments as we assume administration of the pension plan.

Preliminary valuation
One of the first responsibilities in our administration will be the preparation of a preliminary actuarial valuation of the pension plan.

Based on the information we are able to obtain, our actuaries will estimate the wind up funded ratio of the pension plan. Benefits that are being paid to existing retirees may be reduced if the assets of the plan are not sufficient to meet all plan obligations. It may take many months before any reductions are implemented.

Pension Benefits Guarantee Fund (Ontario employment only)
As part of the first steps in the wind up process, we will review documentation to determine if the pension plan qualifies for Pension Benefits Guarantee Fund (“PBGF”) coverage.

If the plan qualifies, we will file an application requesting that the Superintendent of Financial Services (the “Superintendent”) declare that the pension plan is eligible for coverage under the PBGF.

Once the Superintendent issues a declaration that the PBGF is applicable, our actuaries will compile a report to determine the amount of PBGF funding to be requested.

For more information on the PBGF, please see the FAQ page.

Immediate retirement
Members who are eligible for an early or normal retirement pension and who are interested in commencing their pension during the wind up process should contact us.

We will send the member a Request for Retirement Quote form to complete. You may also print a copy of the Request for Retirement Quote form from the Forms page if your plan information is available on this website.

After the preliminary actuarial valuation has been completed and we have received approval from the Superintendent to commence payment of immediate retirement benefits, we will be able to process the member’s request for a retirement quote.

Member information profile (the “Profile”)
Once we have compiled and reviewed our membership records, we will provide each member of the pension plan with a personalized member profile (the “Profile”).

Our Profile will contain information in respect of the member’s service in the pension plan and will be used to verify the accuracy of the member’s personal data and to process the member’s benefit entitlements under the pension plan.

The Wind Up Report
As part of the wind up process, we will submit a recommendation to the appropriate regulatory authority depending on where the pension plan is registered to prepare an order that the pension plan be wound up.

Based on the approved wind up date(s), a final Wind Up Report will be prepared and submitted to the appropriate regulatory authority for their review and approval. This Wind Up Report will contain all members’ final pension benefit entitlements in the pension plan and their individual PBGF coverage, if applicable.

Option forms
Once the Wind Up Report has been approved, we will prepare personalized option forms for each member and former member who is not yet receiving a monthly pension payment from the pension plan.

The personalized option form will set out the pension benefit entitlement and the settlement options available to the member in accordance with the pension plan documents and the applicable legislation and regulations. The member will have an opportunity to advise us of any data corrections that should be made.


Purchasing annuities
In the final stages of our wind up administration, we will purchase annuities through a bidding process from one or more Canadian life insurance companies for pensioners and members who choose the pension option in accordance with the provisions of the pension plan documents and the applicable legislation and regulations.

All pensioners and affected members will be notified of the amount of their monthly annuity and the contact information for the successful insurance company. There will be no interruption to monthly pension payments during the transition period.

Keeping in touch
During the wind up process it is very important that all members keep us informed of any changes in their mailing address, marital status or other personal information that may be relevant to their benefit entitlement.

Please contact us if any of this applicable information changes.

1 comment:

  1. I am a former Nortel worker who has heard nothing
    about this wind up process we are supposedly being notified about and it is a year later.

    ReplyDelete