Nortel Pensioners Want BIA Changes

By Mark Evans | Published: July 16, 2009

With Nortel scaling back the pensions of ex-Nortel employees, a group is putting the pressure on the Canadian government to changes the Bankruptcy and Insolvency Act to give preferred status to the claims of pensioners, disabled and terminated employees over unsecured bond holders and other unsecured creditors.

The group want to obtain full protection of the employment benefits for all Canadian pensioners, long term disabled employees and severed employees within corporations undergoing bankruptcy.

It also wants federal Industry Minister Tony Clements to set conditions on the foreign purchases of Nortel’s businesses to set aside a major part of the cash proceeds to the Canadian pension, health and LTD plans and a severance fund.

You can learn more about the Fix BIA Now! or sign a petition here.


[Slashdot] [Digg] [Reddit] [del.icio.us] [Facebook] [Technorati] [Google] [StumbleUpon]
This entry was posted in Financials and tagged , , , . Bookmark the permalink. Post a comment or leave a trackback: Trackback URL.
← Older Comments
  • Moose_Chaser

    Touche, mon ami ! :+|

    MC

  • Moose_Chaser

    I wonder what happens when the chained replies to this thread get to the right side of the screen ?

    Just wondering.

    MC

  • ntlifer

    Dear colleagues,

    Earlier today, the Pension Benefit Guaranty Corporation (PBGC) made an announcement with respect to Nortel's U.S. Retirement Income Plan — also known as the U.S. Defined Benefit Pension Plan. The PBCG will be assuming responsibility to administer and pay benefits under the plan in accordance with the plan documents and applicable law.

    The PBGC, a federal agency, was created to protect the benefits of private sector employees participating in defined benefit pension plans. It’s not uncommon for the organization to assume responsibility for plans when companies are in Chapter 11 proceedings.

    Although the action announced by the PBGC is technically referred to as a “termination,” it is important to note that when the PBGC terminates a pension plan and becomes its trustee, the PBGC takes over administration of the plan. As a result, Nortel will no longer be the administrator of the plan, and the plan will be considered “terminated,” although your benefits will not cease.

    No action is required on the part of plan members. Your records will be transferred to the PBGC and the agency will take over administration of the plan, and the PBGC will communicate directly with plan members on how to get more information.

    This announcement does not affect the Defined Contribution Plan (i.e. 401(k) plan), Retirement Income Plan Restoration Plan, Long-Term Investment Plan Restoration Plan and Supplementary Executive Retirement Plan. The pension plans for other countries including Canada are also not affected by this announcement.

    I encourage you to listen to last week’s pension GIS for more information on Nortel’s US pension funds and the role of the PBGC. You can also click here for a Frequently Asked Questions document that provides more details on this matter, or you can visit the PBGC website for more information and their full contact details. They’re ready to take your calls and questions.

    Thank you,

    Elena King
    SVP, Human Resources

  • ntlifer

    Dear colleagues,

    Earlier today, the Pension Benefit Guaranty Corporation (PBGC) made an announcement with respect to Nortel's U.S. Retirement Income Plan — also known as the U.S. Defined Benefit Pension Plan. The PBCG will be assuming responsibility to administer and pay benefits under the plan in accordance with the plan documents and applicable law.

    The PBGC, a federal agency, was created to protect the benefits of private sector employees participating in defined benefit pension plans. It’s not uncommon for the organization to assume responsibility for plans when companies are in Chapter 11 proceedings.

    Although the action announced by the PBGC is technically referred to as a “termination,” it is important to note that when the PBGC terminates a pension plan and becomes its trustee, the PBGC takes over administration of the plan. As a result, Nortel will no longer be the administrator of the plan, and the plan will be considered “terminated,” although your benefits will not cease.

    No action is required on the part of plan members. Your records will be transferred to the PBGC and the agency will take over administration of the plan, and the PBGC will communicate directly with plan members on how to get more information.

    This announcement does not affect the Defined Contribution Plan (i.e. 401(k) plan), Retirement Income Plan Restoration Plan, Long-Term Investment Plan Restoration Plan and Supplementary Executive Retirement Plan. The pension plans for other countries including Canada are also not affected by this announcement.

    I encourage you to listen to last week’s pension GIS for more information on Nortel’s US pension funds and the role of the PBGC. You can also click here for a Frequently Asked Questions document that provides more details on this matter, or you can visit the PBGC website for more information and their full contact details. They’re ready to take your calls and questions.

    Thank you,

    Elena King
    SVP, Human Resources

  • less

    Theres a way to find out…

    Siloing is good, say some managers…

  • Another_Nortel_Watcher

    But now in the next election his campaign material will say “I fought for the abandoned Nortel employees!”

  • Another_Nortel_Watcher

    But now in the next election his campaign material will say “I fought for the abandoned Nortel employees!”

  • GoProto

    Awww.. kittens.. they are so cute!! Do you think they will give any away??

    sorry.. couldn't resist. everyone needs a smile ) once in awhile..

  • horace_grimswold

    His opponent will retort with “too little, too late.”

  • less

    Oh! I know! If the site collapses “Cisco will have won…”

  • yes4aapl

    Nortel misleading its creditors, RIM charges
    re
    It's visible by a naked eye of public watchers like myself.
    Nortel does not work in best interest of creditors. It's that simple.
    It's against the law. It's criminal.
    What would happened if MatPat did not protest and did not take action?
    Mike Z would sell assets at the basement prices.
    CDMA $650 plus enterprise /including Gov Solutions/ for $450 and the total less than $2 bill.
    Pension Plan is claiming between $1 bill /low end/ to $3 bill/ safe end/ just in UK
    In USA Pension Plan deficit was $500 mill
    In Canada and the rest it may be around $2 bill
    Here you go and all _total sold for less than $2 bill. by crooked BoD and CEO.
    Nortel misleading its creditors, RIM charges
    I think it is very serious message for governments_RCMP to check it.
    What now TongueInCheek?
    You were wrong as usual, spreading your propaganda and doing diversion.
    read
    Nortel misleading its creditors, RIM charges
    It's obvious that not only creditors but also courts, employees, and public in general.

  • yes4aapl

    Nortel misleading its creditors, RIM charges
    re
    It's visible by a naked eye of public watchers like myself.
    Nortel does not work in best interest of creditors. It's that simple.
    It's against the law. It's criminal.
    What would happened if MatPat did not protest and did not take action?
    Mike Z would sell assets at the basement prices.
    CDMA $650 plus enterprise /including Gov Solutions/ for $450 and the total less than $2 bill.
    Pension Plan is claiming between $1 bill /low end/ to $3 bill/ safe end/ just in UK
    In USA Pension Plan deficit was $500 mill
    In Canada and the rest it may be around $2 bill
    Here you go and all _total sold for less than $2 bill. by crooked BoD and CEO.
    Nortel misleading its creditors, RIM charges
    I think it is very serious message for governments_RCMP to check it.
    What now TongueInCheek?
    You were wrong as usual, spreading your propaganda and doing diversion.
    read
    Nortel misleading its creditors, RIM charges
    It's obvious that not only creditors but also courts, employees, and public in general.

← Older Comments
  • TwitterCounter for @markevans
  • Seeking Alpha Certified