Nortel Networks Corporation

• April 1, 2021

  The mandate of the Court-Appointed Representatives and Koskie Minsky LLP, as Representative Counsel to former Nortel Employees, Pensioners and Long-Term Disability Beneficiaries, ended on March 31, 2021.

  As a result, all members should put questions pertaining to their claims in the Nortel Estate directly to the Monitor, Ernst & Young. Ernst & Young can be reached at their hotline number at 1-866-942-7177 or via email at nortel.monitor@ca.ey.com. Questions pertaining to pension issues should be directed to the Pension Administrator, Morneau Shepell via email at nortelwindup@morneaushepell.com. For the Negotiated Plan, the number is 1-877-392-2073. For the Non-Negotiated Plan, the number is 1-877-392-2074.

• October 6, 2020

  The Monitor has declared a third distribution to be sent on October 7^th, 2020. That distribution amounts to approximately 4.05 cents on the dollar. That third distribution, when combined with the initial distribution and second distribution, results in a cumulative distribution to date of approximately 54.25 cents on the dollar.

  Pursuant to section 6.3(b) of the Canadian Plan, the third distribution will be sent via cheque to the address on file with the Monitor. The Notice of Distribution Rate can be found here.

• September 2, 2020

  Impact of Future Distribution on the Registered Pension Plans

  As future distributions are paid out, former employees will first see associated payments for employment related claims from EY, the Monitor, followed later by corresponding adjustments to registered pension plan benefits.

  Ontario pension plan members will continue to be paid from the plan until the final distribution and they will continue to be paid from their respective registered pension plan until their payments are subsequently annuitized. It should be noted that Ontario plan members should be indifferent to annuitization as it will not affect the amounts paid.

  Registered Pension Plan Update

  We have received the following update from Morneau Shepell, the administrator of the registered pension plans regarding the implementation of the second distribution from the Estate:

  Ontario Timeline Forecast

  Option	1st Dividend FST holdback + 2nd Dividend	Managerial	Negotiated
  Monthly in-Pay	Increase1 + Retro-payment2	Jan 2020	Jan 2020
  Lump Sum (CV/LIF)	Bank Forms Mailed	Jan 2020	Nov 2019
  	Transfers as Forms Received Starting:	Mar 20203	Jan 2020

  1: The first $1000/mo. of pension is guaranteed by the PBGF; thus, adjustments only apply to pension amounts above $1000/mo.

  2: Retro-payment covered the period from Oct 2010 to Dec 2019

  Note: Adjustments were made via CIBC-Mellon which is the agent for MS.
  MS continues to administer the plan in Ontario.

  3: Lump sums processed for non-retired members as forms are received

   Non-Ontario Timeline Forecast

  Option	2nd Dividend	Managerial	Negotiated
  All non-Ontario Monthly in-Pay	Increase1 + Retro-payment2	Sep 2020 (Sun Life or RQ)	Jan 2020 (BMO or RQ)
  Quebec-only Service Lump Sum(CV/LIF)	Bank Forms Mailed	??	Aug 2019
  	Transfers as Forms Received Starting:	Sep 2020	Jan 2020
  Multi-jurisdiction and Pooled Prov. Lump Sum (CV/LIF)	Bank Forms Mailed	Fall 2020	Aug 2019
  	Transfers as Forms Received Starting:	Fall 2020	Jan 2020

  1: Depending on the option you chose your pension may have been converted to an annuity and increases have come / will be coming from your insurance company (Sun Life for the Managerial Plan and BMO for the Negotiated Plan). If you elected a Retraite Québec (RQ) pension, increases have/will come via RQ.

  2: If you are currently paid by RQ then retro-payments have/will be paid from different sources and cover different periods:

  • Managerial Plan: MS will cover Oct 2010 to July 2018 and RQ will cover Aug 2018 to Aug 2020
  • Negotiated Plan: MS covered Oct 2010 to June 2016 and RQ covered Jul 2016 to Dec 2019

  If you have any questions with respect to your registered pension please contact Morneau Shepell at:

  Negotiated Pension Plan: 1-877-392-2073
  Managerial and Non-Negotiated Pension Plan: 1-877-392-2074

• August 27, 2020

  On August 27, 2020 the Monitor announced that a third distribution will occur on October 7, 2020. The amount of the third distribution is not yet known and will be available sometime in September. We will provide an update as soon as information regarding the amount is known, however, the Monitor has previously advised that the remaining distributions are expected to be small.

  Please continue to ensure that Ernst & Young and/or Koskie Minsky have your address changes and please ensure your estates executors are aware that there are still amounts, although much smaller than previous distributions, coming. The third distribution is not the final distribution and therefore it is important that you continue to update your address.

  The Monitor has been working to reach out to and find individuals or estates that have uncashed cheques from distributions and has used various methods, including social media, to do so.

  If you have any questions please contact the Monitor, Ernst & Young at 1-866-942-7177 or nortel.monitor@ca.ey.com.

• August 2, 2019

  On July 23, 2019, the Financial Services Tribunal released its decision ordering the Chief Executive Officer to carry out the Notice of Intended Decision (NOID) which would allow the Pension Benefits Guarantee Fund (PBGF) to recover amounts relating to the loss of indexation that were recovered.

  As previously advised, Koskie Minsky, on behalf of the Court-appointed Representatives challenged the NOID arguing that amounts recovered during the CCAA proceedings for indexation should be used only to compensate members, rather than being used to reimburse the PBGF, since indexation was not guaranteed under the PBGF.

  The FST disagreed with the position, however, and held that the Indexation Addenda that were prepared by Morneau (dealing with the amounts we objected were going to be directed to the PBGF as a refund) met the requirements of the Act and Regulation “and protect(s) the interests of the members and retired members and other beneficiaries”.

  Representative Counsel and the Representatives are currently reviewing the decision and considering whether to appeal. We will provide an update as further information becomes available.

  To view a copy of the decision please click here.

• June 24, 2019

  Second Distribution – ESDC Update

  The Monitor reports that it is in regular contact with ESDC regarding their review of Second Distribution payments (made in mid-December 2018), which is still ongoing. ESDC reports that the review has now been completed for approximately 900 of the 2,000 payments under review. The Monitor is working on releasing the distributions of those individuals who have ESDC now been cleared by ESDC.

  ESDC has not provided a date for completion of the remainder of the review. The Monitor will post the date of payment/completion of the review to it’s website at the following link as the information becomes available:

  https://documentcentre.eycan.com/Pages/Overview.aspx?SID=89

  ESDC has not provided any updates with respect to the approximately 260 individuals whose recent distributions from the Health and Welfare Trust distribution has been put on hold pending ESDC review.

• May 31, 2019

  The Monitor mailed the final distribution from the Health and Welfare Trust on May 30, 2019 to approximately 9,000 Participating Beneficiaries for claims relating to:

  • LTD Income;
  • LTD Basic/Optional Life Insurance;
  • Pensioner Life Insurance;
  • Survivor Income Benefits;
  • Survivor Transition Benefits (in-pay)

  Although the Statement displays a distribution rate of only 1.212%, which is the estimated rate referenced in the April 2019 report to the Court, the actual distribution rate used in calculating the amount of the cheque is slightly higher at 1.228%.

  Please note that approximately 260 individuals will have their distributions delayed as their distribution requires approval from ESDC.

  Please continue to keep your address updated with the Monitor as there is expected to be at least one more distribution from the Nortel Estate although the timing and amount of this distribution is not yet known. For information on address changes please click here.

• November 29, 2018

  Update on Koskie Minsky’s Role as Legal Counsel

  As of November 30, 2018, the funding from the Nortel Estate for legal and professional services of Former Nortel Employees, Pensioners and Long-Term Disability Beneficiaries has come to an end, and any future legal costs must come out of distributions payable to those individuals.

  As a result, all members should put questions pertaining to their claims in the Nortel Estate directly to the Monitor, Ernst & Young. Ernst & Young can be reached at their hotline number at 1-866-942-7177. Questions pertaining to pension issues should be directed to the Pension Administrator, Morneau Shepell. For the Negotiated Plan, this number is 1-877-392-2073. For the Non-Negotiated Plan, the number is 1-877-392-2074.

  If your matter has not been resolved by contacting the Monitor and/or Morneau Shepell, you may email Koskie Minsky at Nortel@kmlaw.ca and we will see if we can be of assistance.

  Second Distribution has been declared

  The Monitor declared a second distribution on November 14, 2018. That distribution amounts to 4.71 cents on the dollar. That second distribution, when combined with the initial distribution, results in a cumulative distribution to date of approximately 50.20 cents on the dollar.

  Pursuant to section 6.3(b) of the Canadian Plan, the second distribution will be sent via cheque to the address on file with the Monitor as of December 6, 2018. It is anticipated that the second distribution will begin on December 10, 2018 and continue through mid-December 2018. We expect it to be paid by the end of the year. The Notice of Distribution Date can be found here and Notice of Distribution Rate can be found here.

  FST Hearing on Behalf of Ontario Plan Members

  Koskie Minsky, on behalf of the Court-appointed Representatives, is currently challenging the Superintendent of Financial Services (the “Superintendent”) and Morneau Shepell on the matter of whether certain funds should be recouped by the Pension Benefits Guarantee Fund (“PBGF”) from the Nortel Pension Plans.

  After the plan was wound up in deficit, the Superintendent issued orders on May 26, 2011 declaring that the PBGF applied to the Nortel Pension Plan, and then approved interim distributions of $383,977,000. These distributions were made on the condition that whatever was not necessary for the settlement of member benefit entitlements would be returned to the PBGF.

  The dispute with the PBGF relates to recoveries made by the Plans from the Nortel estate with respect to lost indexation. The PBGF does not guarantee indexation, whereas the Nortel Pension Plans did provide some degree of indexation for most plan members. The Court-Appointed Representatives and Koskie Minsky believe that the amounts recovered during the CCAA proceedings for indexation should be used only to compensate members, rather than being used to reimburse the PBGF. For further information on this matter, you may review the Written Argument that Koskie Minsky has filed in this matter here.

  On April 4, 2018, Koskie Minsky filed a request for a hearing with regards to this issue. The matter will be heard at the Financial Services Tribunal on March 7 and 8, 2019.

  Tax Appeal

  We have been advised by the CRA and Revenu Quebec that they have completed processing the notices of objection filed by or on behalf of former Nortel employees in respect of distributions in respect of pensioner and LTD life insurance from the Nortel Health and Welfare Trust (the “HWT”) that have been determined to be non-taxable pursuant to the Tax Court of Canada decision in Scott v. The Queen, 2017 TCC 224 (CanLII) (“Scott“). Reassessments in most instances have been issued to affected taxpayers who had filed a valid and timely objection for one or more tax years.

  If you received a distribution from the HWT in respect of the loss of group term life insurance and you have not received a reassessment from the CRA, you may still apply to the CRA for a reassessment in respect of the taxation years in which you received such distributions even if you did not have a valid objection filed.

  Under section 152(4.2) of the Income Tax Act, the CRA has the discretion to reassess a taxpayer at the request of the taxpayer, provided such a request is filed within ten years of the end of the taxation year in respect of which the taxpayer wishes to be reassessed.  The CRA has indicated that it may be willing to exercise this discretion in respect of former Nortel employees who did not file a notice of objection regarding the taxation of these distributions if you apply to the CRA to consider a reassessment, though each case will be evaluated individually, on its own merits.

  To apply you should submit a Form T1-ADJ, T1 Adjustment Request in respect of the relevant taxation year to the CRA, which can be accessed from the CRA’s website at the following address:

  https://www.canada.ca/content/dam/cra-arc/formspubs/pbg/t1-adj/t1-adj-fill-08-18e.pdf

  In addition, in order to assist former Nortel employees in requesting a reassessment, we have prepared a form letter, accessible here, which can be filled out by the taxpayer and submitted to the CRA, along with your Form T1-ADJ.

  Affected former Nortel employees who wish to seek adjustments in respect of taxation years are encouraged to consult with their personal tax advisors for assistance in completing these requests.

• October 31, 2018

  On March 7th and 8th, 2019, a hearing will be held at the Financial Services Tribunal about a dispute over refunds to the Pension Benefits Guarantee Fund. To see the Notice of Hearing, please click here.

• August 3, 2018

  The Monitor (EY) has yet to declare a 2nd CCAA distribution although we are hopeful that this will be done soon. Typically the payment would occur one to two months after the distribution is declared. The amount paid is expected to be small, representing approximately 1.5% to 1.8 % of claims. This compares to the 1st distribution in July 2017, which paid a dividend worth approximately 45.49% of claims.

• March 1, 2018

  Tax Slips for 2017

  As of February 28, 2018, the Monitor has sent out the tax slips for distributions received in 2017 and they should be received by mid-March, 2018.

  In order to answer some commonly-asked questions around the taxation of the distributions, we have posted a Tax FAQ which is available at this link or below in the FAQ section. Please note that Representative Counsel is not providing you with tax advice and that the usefulness and application of the information will vary based on your personal circumstances. Please consult with a tax advisor if you have any questions.

  The Tax FAQ provides information on tax slips, various tax planning and pensions issues, as well as some information about the Nortel Tax Appeal. If you have further questions about your pensions amounts, please contact Morneau Shepell.

• December 14, 2017

  On December 7, 2017, Representative Counsel and the Monitor hosted a webinar to provide further information on which Compensation Claims may be entitled to a QRLSP calculation.

  To view a copy of the PowerPoint presentation used for the webinar please click here.

• December 12, 2017

  The deadline to file an appeal to the decision in the Test Case Appeals has now passed. Neither Representative Counsel nor the Department of Justice will be appealing the decision of the Tax Court of Canada. Representative Counsel is currently in discussions with the Canada Revenue Agency and the Monitor regarding the implementation of the Tax Court’s decision in the Test Case Appeals, and we will provide further information as soon as it becomes available.

  To view a copy of the decision of the Tax Court please click here.

  For more information, please see our Tax Appeal Tab by clicking here.

• December 5, 2017

  Morneau Shepell has implemented increases for pensioners-in-pay who chose the annuity option under both the Negotiated and Managerial Pension Plans pursuant to addenda filed with Financial Service Commission of Ontario (“FSCO”) subject to certain exceptions described below. The increases were made with the November 25^th deposit for both the Plans and a retroactive payment has been made as a separate direct deposit.

  Those who elected a lump sum transfer of their commuted value will be provided with lump sum amounts in the first or second quarter of 2018.

  Please note that the increases do not include:

  • Ontario pensioners covered by the Pension Benefits Guarantee Fund (PBGF) with benefits of $1,000 or less;
  • Quebec pensioners who elected the RQ option in the Negotiated Plan, which the RQ will make at a later date in 2018; and
  • Estates where as a result of the death of a pensioner (or survivor) monthly payments are no longer being made, however, a retroactive payment is owed, which will be made some time in 2018.

  In addition, amounts relating to Ontario service do not include the CCAA recovery for indexation. The court appointed Representatives filed an objection with the Superintendent of Financial Services with respect to the proposed distribution of amounts recovered for indexation in an addendum to the wind up report filed by the administrator of the Nortel pension plans, Morneau Shepell.

  The Representatives object to the amounts recovered for indexation on behalf of Ontario members entitled to indexation from being incorporated in the calculation on the funded ratio and ultimately being used  to reduce the PBGFs obligation towards the pension plans, rather than going directly to each member’s individual claim for lost indexation. In aggregate, the advisors for the Representatives believe the amount in dispute could be worth up to $100 million that would go to eligible Ontario members instead of the PBGF.

  Submissions are being exchanged by the parties at this time and the possible next step may include an appearance before the Financial Services Tribunal of Ontario.

  For more information regarding the Registered Pension Plans please click here.

  If you have any questions regarding the increases to pension benefits, retroactive payments or QRLSP forms that were included with Morneau’s Notice of the increase, please contact Morneau Shepell directly at:

  • Negotiated Pension Plan: 1-877-392-2073
  • Managerial and Non-Negotiated Pension Plan: 1-877-392-2074
• November 15, 2017

  On Friday, November 10, 2017, the Tax Court of Canada released its decision in the Test Case Appeals.

  In his decision, the Honourable Mr. Justice Sommerfeldt held the distributions from the HWT which replaced future payments under a group term life insurance policy for pensioners and disabled employees are not taxable under subsection 6(4) of the Income Tax Act and cannot otherwise be included under paragraph 6(1)(a).

  The decision of the Tax Court, however, held that both Survivor Income Benefits (SIB) and Survivor Transition Benefits (STB) are taxable as payments in lieu of death benefits under section 56(1)(a)(iii) of the Income Tax Act.

  To view a copy of the decision of the Tax Court please click here.

  For more information, please see our Tax Appeal Tab by clicking here.

• November 10, 2017

  A letter has been mailed out to Compensation Creditors with respect to Qualifying Retroactive Lump-Sum Payment (“QRLSP“) forms for certain qualifying Compensation Claims. The letter provides details of a webinar that Representative Counsel and the Monitor will be hosting to provide further information on which Compensation Claims may be entitled to a QRLSP calculation. QRLSP forms will be sent out by Nortel with respect to distributions received in July 2017 and will not affect future distributions.

  Please note that while you may receive a QRLSP form for your compensation claims, Morneau Shepell may also be sending you a separate QRLSP form for retroactive pension amounts. The letter that was sent to Compensation Creditors by Koskie Minsky does not address the QRLSP form from Morneau Shepell. You may qualify for a QRLSP form from Morneau Shepell with respect to your registered pension benefits and should contact them directly if you have any questions regarding your calculation.

  The webinar will be held on December 7, 2017 at 10 a.m. (Toronto time) in English and at 2 p.m. (Toronto time) in French.

  The webinar on December 7, 2017 can be accessed in two ways:

  1. Live Web (with audio) Presentation: Please access the webinar at the link provided below. You do not need to register for the webinar online but please ensure you don’t have any issues accessing the link at least a few days before the live webinar you would like to attend. Archived versions of the webinars will be posted 48 hours after the live webinar and will be available for a year after the presentation. [LINKS NO LONGER AVAILABLE]

  a) December 7, 2017 at 10 am in English: http://bell.media-server.com/m/p/pwdxrsgx

  b) December 7, 2017 at 2 pm in French: http://bell.media-server.com/m/p/2hggysjw

  2. Telephone attendance: If you do not have access to a computer with internet, a dial-in audio-only option is available. You can sign up for this option by leaving a message on Koskie Minsky’s toll free hotline at 1-866-777-6344 with your name, telephone number, and by mentioning that you wish to participate in the webinar by telephone. A Koskie Minsky representative will call you back to provide you with details. Please register by noon on December 5, 2017 to ensure a representative can call you back in time with the information.

  To review frequently asked questions and answers (FAQ), please click here.

  Please review the FAQ and attend the webinar before contacting Representative Counsel with your questions. Please note that Representative Counsel and the Monitor are not providing advice on whether a QRLSP will be useful to you as it will depend on your personal financial circumstances. Please seek advice from your tax advisor.

• October 3, 2017

  Notices of Reportable Eligible Retiring Allowance (ERA) were mailed by the Monitor to those whose statements indicated “Part of Your Distribution may be considered an Eligible Retiring Allowance” on line H of your Initial Distribution statement (mailed to claimants during the summer of 2017).

  If you have any questions or need a correction to the form, please provide it to the Monitor using the Change Form enclosed with your Notice. Changes must be received by the Monitor by 5 pm on October 30, 2017. To access the Change Form please click here.

  If you have no questions or changes there is nothing further to do at this time. The Monitor will send out ERA forms prior to tax season based on the information provided in the Notice.

  If you did not receive a Notice by October 10^th  and believe you should have, please contact the Monitor at: nortel.monitor@ca.ey.com or 1-866-942-7177.

  To summarize, in order to be eligible for the ERA you must meet all of the following three criteria:

  1. Your accepted claim includes either: (a) a TRA or RAP or (b) base severance or you have information on line 83 of Form B of Your Information Statement Package (mailed to former employees starting in late 2011);
  2. You are 71 years of age or younger as at December 31, 2017; and
  3. You have pre-1996 years of service.

  You should consult with your tax advisor to ensure the calculation of Reportable ERA reflects your individual circumstances and to understand the effect it might have on your RRSP deductions.

  In addition to $2,000 for each pre-1996 year of service, for those with service prior to 1989, the CRA advises that you may claim $1,500 for each year before 1989 if no employer contributions made to a pension plan or deferred profit sharing plan for those years have vested at the time you receive the retiring allowance. For more information please see the CRA’s explanation in Income Tax Folio S2-F1-C2, at 2.30a and 2.31c, accessible here.

  Information regarding the ERA was provided in an FAQ and a webinar in the spring and can be accessed here:

  • Recording of the April 27, 2017 town hall can be accessed here
  • FAQ regarding the eligibility for direct transfer to RRSPs that was available for certain claimants before the June 18, 2017 can be accessed here
• September 19, 2017

  We have been advised by the Monitor that they have completed processing the Employment and Social Development Canada (ESDC) responses with respect to Employment Insurance (EI) overpayments and have mailed cheques to Compensation Creditors who were affected by the ESDC hold.

  If you have any questions about your cheque please email us at nortel@kmlaw.ca or call us at 1-866-777-6344.

• September 5, 2017

  The Monitor has now received a response from Employment and Social Development Canada (ESDC) for Compensation Claimants who have not received their first distribution pending a review relating to Employment Insurance (EI). The Monitor will be working to process the ESDC response and expects to have cheques and revised statements to these individuals by the end of September. The Monitor will not be able to provide individual information regarding the ESDC response during this time as it is focusing on turning around the information as quickly as possible in order to have these distributions in the mail as soon as possible.

• September 1, 2017

  The Monitor and Koskie Minsky have now completed their roadshows and webinars providing information with respect to the first dividend.

  To view a copy of the presentation slides please click here.

  The recording of the August 31, 2017^th webinars can be viewed at the following links: [LINKS NO LONGER ACTIVE]

  English: http://bell.media-server.com/m/p/7r7mxbn5

  French: http://bell.media-server.com/m/p/6qbavg28

• September 1, 2017

  A letter has been mailed out by those affected by the ESDC review. We have been advised that ESDC has begun its review of Nortel members.

  If you have received a letter from Service Canada (on behalf of ESDC) with respect to Employment Insurance owing please review to ensure that the information is correct. If you have any questions after reviewing the letter please contact Koskie Minsky at nortel@kmlaw.ca or 1-866-777-6344.

  If you need to complete a reconsideration form it can be accessed here:  https://catalogue.servicecanada.gc.ca/apps/EForms/pdf/en/SC-INS5210.pdf

  Please contact Koskie Minsky before submitting the form at nortel@kmlaw.ca or 1-866-777-6344, however, please be mindful of the 30 day deadline to make a reconsideration request. We will respond to inquiries as soon as possible during business hours.

  If you have not received the Service Canada (ESDC) letter you do not need to take any steps. The Monitor is still waiting for clearance for individuals and will provide updates as it receives a response, which we will also post on our website. Please check our website regularly for updates.

• July 25, 2017

  Koskie Minsky LLP, the court appointed Representative Counsel to former and disabled employees of Nortel, and Ernst & Young Inc., Court-appointed Monitor, will conduct information sessions in August of 2017 to provide information with respect to the initial distribution form the Nortel Estate.  The sessions are for former Nortel employees only and will be held at the following locations and dates:

  Meetings:

  1. Toronto – August 3^rd at 10 am and 6 pm at the International Centre (6900 Airport Road)
  2. Calgary – August 8^th at 6 pm at the Radisson Hotel and Conference Center Calgary Airport (6620 36th Street NE)
  3. Ottawa – August 10^th at 10 am and 6 pm at the Nepean Sportsplex (1701 Woodroffe Ave)
  4. Montreal/Pointe Claire – August 15^th at 10 am and 6 pm at the Holiday Inn Hotel & Suites Pointe-Claire Montreal Airport (6700 Route Transcanadienne) Note both these sessions are in English with simultaneous translation into French

  Webinars [LINKS NO LONGER ACTIVE]:

  1. August 1^st at 2 pm Toronto time – English only
  2. August 31^st at 10 am – French only

  http://bell.media-server.com/m/p/6qbavg28

  3. August 31^st at 2 pm – English only

  http://bell.media-server.com/m/p/7r7mxbn5

  There are two ways to access the Webinars:

  1. LIVE WEB (WITH AUDIO) PRESENTATION: Please access the webinar at the link provide above. You do not need to register for the webinar online but please ensure you don’t have any issues accessing the above link at least a few days before the live webinar you would like to attend. Archived versions of the webinars will be posted 48 hours after the live webinar and will be available for a year after the presentation.
  2. TELEPHONE ATTENDANCE: A dial-in audio-only option will be available to individuals who do not have internet access and wish to listen in to one of the three scheduled webinars. If you do not have access to the internet and wish to listen in, please leave a message on Koskie Minsky’s toll free hotline at 1.866.777.6344 indicating your name, telephone number and that you wish to participate in a webinar by telephone. A Koskie Minsky representative will call you back to provide you with details about how to dial in. Please register by noon on July 28, 2017 for the August 1st webinar and by noon on August 25, 2017 for the August 31st webinar.

  To view a copy of the Information Session Schedule in full including the address of the meeting please click here.

• July 24, 2017

  On July 20, 2017, the Supreme Court of Canada denied the application for leave to appeal of a dissenting LTD Beneficiary with respect to the Canadian Plan of Compromise (the Plan).

  This decision follows on the denial of leave to appeal by the Ontario Court of Appeal from the decision of the Superior Court of Justice (Commercial List) to sanction the Plan. At the Superior Court, two dissenting LTD Beneficiaries sought to amend the Plan to set aside CA $44 million while the court reconsidered a 2010 Employee Settlement Agreement, which they alleged violated their Charter rights. The Superior Court declined to do so and sanctioned the Plan without further amendments.

  To view a copy of the Supreme Court decision, please click here.

• July 13, 2017

  The first dividend to all Compensation Claims Creditors was mailed by the Monitor on July 11, 2017.

  As previously reported, the first dividend is for 45.49% for Compensation Creditors less any amounts received from the Health and Welfare Trust or the Hardship Fund and any applicable tax or other withholding. A detailed statement will be provided with cheques and a Guide to the Initial Distribution will be mailed to members providing an explanation of various items on the statement. A copy of the Guide to Initial Distribution is available here. [link no longer available]

  Please not the Guide to Initial Distribution has been mailed separately from the cheques.

  Some members will only receive a statement at this time as their distributions are in hold until a review is completed by Employment and Social Development Canada (ESDC) for amounts owing for Employment Insurance (EI). Once the review is completed by ESDC, the Monitor will release your cheque less any EI owing.

  The Monitor and Representative Counsel have organized webinars and information sessions in order to explain the distributions and tax implications. Please try and attend one of these sessions if you have any questions regarding your distribution. To view a copy of the full schedule please click here. [link no longer available]

  The next and possibly final distribution is expected be between 2.5%-4% of your Compensation Claim, however, the timing is not yet known.

• June 9, 2017

  On June 8, 2017, the Monitor declared that the first dividend for Compensation Creditors will be July 6, 2017 and that cheques will be sent to the address on file for those with compensation claims throughout mid-July. To view a copy of the Notice of Initial Distribution please click here.

  The first distribution will be 45.49% Canadian for Compensation Creditors. Note amounts received from the Health and Welfare Fund or Hardship Fund will be deducted and any applicable tax withholding will be applied. You will receive a detailed package with your cheque explaining the cheque amount.

  Representative Counsel is working with the Monitor to organize roadshows to explain the first dividend cheque and tax implications on various claims. More information will be provided in the near future.

  Please ensure your address is up to date before June 30, 2017, as whatever address is on file as of this date will be used to mail your cheque. To advise us of an address change please follow the instructions provided at this link.

• May 12, 2017

  On Friday, May 5, 2017 the US Bankruptcy Court approved the Settlement Agreement and the Plan became Effective in both Canada and the US on Monday, May 8, 2017. To view a copy of the Plan Effectiveness Certificate please click here. [link no longer active]

• May 10, 2017

  An FAQ has been prepared responding to questions received during and after the town hall held on April 27, 2017 regarding the ability to transfer certain employment claim payments to RRSPs. To access the FAQ please click here.

  The Monitor has also posted the form to be completed if you qualify for a direct RRSP contribution based on the following criteria:

  • you elect to transfer a minimum of $26,010 into your RRSP; and
  • you have sufficient RRSP contribution room to absorb the contribution; and
  • you are 71 years of age or younger as of December 31, 2017.

  The form can be accessed here. Please read it carefully and note the deadline of 5 pm on  June 8, 2017.

  To access a recording of the town hall held on April 27, 2017 regarding the ability to transfers certain employment claim payments to RRSPs please click here [Link no longer active].

• May 4, 2017

  The Hardship Fund is expected to be terminated on Monday, May 8^th if certain conditions are fulfilled including court approval in the US Bankruptcy Court of the Waiver and Reserve Agreement. This means that any applications for the Hardship Fund, which provides an advance on your claim if certain criteria are met, must be received by Sunday, May 7^th in order to be processed.

  For more information on the Hardship Fund, including the application and eligibility requirements please click here.

• May 3, 2017

  We are pleased to announce that the Superior Court of Justice (Commercial List) approved a Waiver and Reserve Agreement today which will allow the Monitor to make distributions. Based on the Monitor’s Report filed for the motion, the Monitor believes it will be able to distribute in late June or early July.

  The Waiver and Reserve Agreement permits $44 million to be set aside. $44 million is the amount identified as necessary to make all of the LTD beneficiaries whole for the loss of their income benefits. Although unlikely, if the dissenting LTD Beneficiaries are successful, an additional $44 million will be distributed to LTD members over and above the amounts they would receive under the Plan of Compromise. If, however, leave to appeal is denied by the Supreme Court of Canada or the dissenting LTD Beneficiaries are not ultimately successful in an appeal, the $44 million will be put back in the pool of funds to be shared in a future distribution to all creditors.

  The Waiver and Reserve Agreement also permits the Settlement Agreement and Plan of Compromise to be implemented notwithstanding that appeals or leaves to appeal the Sanction Order are outstanding.

  Relevant documents can be accessed as follows:

  A copy of the endorsement is available here.

  A copy of the Court Order is available here.

  A copy of the Waiver and Reserve Agreement is available at Tab 2B of the Monitor’s Motion Record available here.

  Approval of the Waiver and Reserve Agreement must also be obtained from the US Bankruptcy Court. A hearing is scheduled for May 5, 2017.

  As previously reported, the distribution to former Canadian employees including LTD Beneficiaries and retirees will be 45-49 cents on every dollar of approved claim with more than one distribution expected.

  During the hearing on May 1, 2017 the two dissenting LTD Beneficiaries advised the court that they do intend to seek leave to appeal to the Supreme Court of Canada. The deadline to file their material is May 12, 2017. Justice Newbould’s endorsement urges the Supreme Court of Canada to expedite the hearing of the issue.

  We will continue to update you as information becomes available. Please continue to check back for updates including information sessions (schedule to be announced) for information about the distribution and taxation matters.

• April 20, 2017

  Nortel Networks Limited – Audio and Webcast discussion about eligibility for direct transfers to RRSPs for certain employment claim payments

  This discussion is targeted at a narrow set of former Nortel employees and will deal with how payments from E&Y for compensation claims may be eligible for deposit into RRSPs.

  If you meet the following criteria you may be interested in attending:

  If you are 71 years of age or younger as of December 31^st, 2017 (i.e. age eligible to make RRSP contributions), and

  1. you have RRSP contribution room and/or
  2. have a claim for severance or termination pay, TRA (Transition to Retirement Allowance) and/or RAP (Retirement Allowance Plan) and you had service with Nortel prior to 1996, then please read on.

  Koskie Minsky LLP together with its advisors will be holding a participatory conference call and webcast accessible by internet or telephone (see below) on Thursday April 27^th, 2017 at 11:00 am EDT to discuss the process that Ernst and Young (the Monitor) will implement in connection with the upcoming claims payments that may be eligible for direct transfer into individual RRSP accounts. The objective is to explain and address questions about the availability of transfers, although we don’t yet have a final determination as to how these will be dealt with upon distribution. We felt that it would be helpful to discuss your concerns and share the information we currently have. The call will also address questions on tax withholdings on the distributions.  The presentation will be done in English and French and there will be the opportunity to ask questions in both languages.

  The call is scheduled for one hour and will start with a brief presentation – with slides for those who access via internet – followed by a question and answer period. You will be able to ask questions orally or by email. To view a copy of the PowerPoint presentation please click here.

  To access the call please use one of the following:

  1. Web Access (turn on your microphone and speakers): http://bell.media-server.com/m/p/d535ksrx [LINK NO LONGER ACTIVE]
  2. Toll-free telephone dial-in: please call Koskie Minsky’s Communication Department at 1-866-777-6344 to register for the dial-in option.

  The call will be recorded and the recording will be accessible on Koskie Minsky’s website by May 1^st for those who are not able to attend the live event.

  Feel free to share the details of this call with any other former Nortel employees that may be interested in this topic.

  If you have any questions please email us at nortel@kmlaw.ca or call us at 1-866-777-6344.

• March 14, 2017

  On March 14, 2017, the Court of Appeal for Ontario released its decision denying two LTD Beneficiaries leave to appeal the January 24^th order and January 30^th endorsement of Justice Newbould approving the Canadian Plan of Compromise and Arrangement (the “Plan”). In his decision, Judge Newbould declined to amend the Plan to set aside CA $44 million for the LTD Beneficiaries and refused to reconsider the 2010 Employee Settlement Agreement and court approval of that Agreement. He found there was no violation of the Charter rights of the dissenting LTD Beneficiaries.

  The Court of Appeal unanimously held that the application was not meritorious, and the appellants had not met the test for leave to appeal. To view a copy of the decision please click here.

  The two dissenting LTD Beneficiaries have 60 days to seek leave to appeal to the Supreme Court of Canada. This appeal process has and will continue to delay the implementation of the Plan, as well as the first distribution to creditors from the estate which was originally expected to be made in April 2017. As soon as there is updated information as to when the Monitor expects to be able to make that first payment we will post it here. Please keep checking back for further developments.

• January 25, 2017

  We are pleased to report that on January 24, 2017, after an all-day cross-border hearing, both the Ontario Superior Court of Justice (Commercial List) and the United States Bankruptcy Court released decisions from the bench unanimously sanctioning the Plans of Compromise and Arrangement in their respective jurisdictions. A copy of the Canadian Sanction Order is available here.

  The endorsement of Justice Newbould was released on January 30th and can be viewed here.

  The cross-border sanction hearing followed votes by creditors in both jurisdictions in January. The Canadian vote was held on January 17, 2017 and resulted in 99.7% of creditors in number (99.24% in value) voting in favour of the Plan.

  In providing his decision, Justice Newbould of the Ontario Superior Court of Justice recognized the hardship faced especially by former employees, pensioners, LTD Beneficiaries, surviving spouses of former employees and their beneficiaries in the length of time it has taken to get to a settlement and the depletion of assets following successful asset recoveries.

  Two dissenting LTD Beneficiaries filed submissions requesting that the Canadian Plan be amended in order to set aside CA $44 million while the court reconsiders the 2010 Employee Settlement Agreement, which they alleged violated their Charter rights. The Canadian Court admitted the submissions of the two dissenting LTD Beneficiaries, however, the Plan was sanctioned without further amendments.

  Reasons for the decision will follow and we will post a copy of the reasons of both courts as soon as they are released.

  Pursuant to the Plan, Canadian Compensation Creditors are expected to receive a recovery currently estimated as CA 45 cents to 49 cents. The initial distribution is anticipated to be made during April 2017. We will continue to update you as information becomes available.

• December 22, 2016

  We have prepared an FAQ for inquiries we have received from US residents with respect to the Managerial Plan wind-up. To view the FAQ please click here.

• December 14, 2016

  A letter has been sent to Compensation Creditors advising them of the upcoming Meeting of Unsecured Creditors of the Canadian Debtors on January 17, 2017. Compensation creditors do not need to attend the Meeting as  the court appointed representatives will be voting on your behalf in favour of the Plan.

  [links no longer available]

  To view a copy of the Letter to Compensation Creditors please click here.

  To view a copy of the Plan of Compromise and Arrangement please click here.

  To view a copy the Information Circular please click here.

  To view a copy of other material relating to the Plan and Meeting please visit the Monitor’s website by clicking here.

  If you are a member of the Negotiated or Managerial Plan and do not have any other benefits (i.e. severance, LTD benefits, pensioner life insurance, etc.) owing to you, you would not have received this letter as your claim will be represented by the plan administrator, Morneau Shepell.

  If you have any questions regarding your status as a Compensation Creditor please contact us at nortel@kmlaw.ca or  1-866-777-6344.

• November 25, 2016

  As part of the information sessions being hosted to provide Nortel Managerial Plan members with information about their options, three webinars were held on November 24 and 25, 2016.

  The archived webinars (slides + audio) are available at link below [LINKS NO LONGER ACTIVE]:

  • November 24, 2016 (10 am EST) Non-Québec Members in English: •Accessible online at: http://bell.media-server.com/m/p/77mpcaa
  • November 25, 2016 (10 am EST) Québec Members in French •Accessible online at: http://bell.media-server.com/m/p/4t736eqt
  • November 25, 2016 (1 pm EST) Québec Members in English •Accessible online at: http://bell.media-server.com/m/p/csotu6m2
• November 24, 2016

  As part of the Nortel Managerial Plan information sessions, Koskie Minsky, Morneau Shepell and Retraite Quebec will be conducting webinars which will be live at the following links [LINKS NO LONGER ACTIVE]:

  • November 24, 2016 (10 am EST) Non-Québec Members in English: •Accessible online at: http://bell.media-server.com/m/p/77mpcaa2
  • November 25, 2016 (10 am EST) Québec Members in French •Accessible online at: http://bell.media-server.com/m/p/4t736eqt
  • November 25, 2016 (1 pm EST) Québec Members in English •Accessible online at: http://bell.media-server.com/m/p/csotu6m2

  If you are not able to attend, a recording of the webinar will be posted online two business days after the live presentation and will be able to be watched as many times as a member may need to.

  If you have any questions please contact our Communications Department at nortel@kmlaw.ca or 1-866-777-6344.

• November 21, 2016

  A Disabled Employee Progress Report was mailed out on November 15, 2015. To view a copy, please click here.

• October 12, 2016

  After nearly 8 years of skirmishing among stakeholders, and financial hardship suffered by our constituents, the Court-appointed Representatives, together with the NRPC and CNELTD, are very happy that a settlement has been reached which will pave the way to finally putting money into people’s pockets.

  The victories secured in court, especially over the last two years, were the catalyst to this settlement which yields substantially more than any creditor group was prepared to concede in court to Canadian creditors.

  The allocation of the roughly US $7.3 billion collected from the sales of Nortel’s worldwide businesses (the “lockbox”) has been settled, with some conditions. Pursuant to the Global Settlement and Support Agreement, the Canadian Estate will receive approximately 57% of the lockbox (US $4.143 billion). Some of the proceeds will be converted to Canadian dollars, and together with the funds currently in the Canadian Estate, will be made available to Canadian creditors through the claims process.

  The Global Settlement and Support Agreement is subject to certain conditions, including CCAA and Chapter 11 plans to be voted on by creditors in the Canadian and US Estates and court approval in Canada, the US and Europe.

  Assuming that all conditions are satisfied, the Monitor of the Canadian Estate estimate that a payment on claims will be made in the first half of 2017.

  To view a copy of the press release from the Canadian Estate please click here. To view a copy of the Global Settlement and Support Agreement please click here.

  In addition, to access the Koskie Minsky Legal Update slides which are being presented at the Managerial Plan wind up roadshows please click here.

  For background information regarding the Allocation Litigation and other litigation please click here.

  We will continue to provide information as it becomes available, including projections of the percentage amount to be distributed to creditors – including pensioners, former and disabled employees – on their claims.

• October 6, 2016

  The second day of hearings in the Test Case Appeals took place in Ottawa on Wednesday, October 5, 2016 before the Honourable Mr. Justice Sommerfeldt of the Tax Court of Canada. The oral submissions were completed. However, Mr. Justice Sommerfeldt granted the Crown the opportunity to make a written submission to address a question that his Honour raised on the first hearing date. The submissions process should conclude by November 24, 2016, after which the judge will deliberate and provide written reasons. His Honour advised that he expects that it will be a matter of months to review the documents, reach a decision, and release written reasons, given the complexity of the case. For more information about the Test Case Appeals, please see the Tax Appeal tab on this page or click here.

• October 6, 2016

  In order to assist you with the completion of the option forms, Morneau Shepell will conduct information sessions in October and November of 2016 in person and by webinar.

  These sessions are intended to provide you with:

  • an explanation of the wind-up of the Managerial Plan;
  • information related to wind-up options specific to your province of employment;
  • a forum to ask questions regarding the wind-up and the options available to you; and
  • updates on the Nortel CCAA proceedings.

  To view a full schedule of the information sessions please click here.

  For more information regarding the Managerial Plan wind up, please visit our Wind up tab by clicking here.

• September 26, 2016

  The Ontario Superior Court of Justice (Commercial List) released a decision today with respect to the claims of 115 former employees of Nortel’s Innovation Centre in Calgary, finding that inducements to stay and work based on a promise of severance pay did not create liability for directors for unpaid debts for services rendered. To view a copy of the decision please click here.

• September 14, 2016

  The wind up report for the Managerial Plan was approved by the Superintendent of Financial Services on June 30, 2016. Morneau commenced mailing option forms on August 30, 2016. For more information on the wind-up of Nortel registered pension plans including the information sessions being held for the Managerial Plan, please visit our Wind-Up tab by clicking here.

• September 14, 2016

  The Test Case Appeal was heard by the Tax Court on Thursday, August 25, 2016. The parties were not able to complete the case in one day and therefore a second hearing date has been scheduled for Wednesday, October 5, 2016. We will provide an update following this hearing. For further information regarding the Test Case Appeals please visit our Tax Appeal tab by clicking here. Please also see an FAQ we recently posted to answer some of the questions we’ve received from members by clicking here.

• July 21, 2016

  We understand that a number of you have received letters from the Canada Revenue Agency (CRA) regarding your Notice of Objection to appeal the taxes paid on the health and welfare trust payments you received in 2014. For the most part, these letters are standard form letters confirming receipt of your objection and reminding you that if you did not pay the taxes on your 2014 payments and received a Notice of Assessment stating that you owe taxes for these payments in 2014, you should pay these amounts as interest may be accruing. We expect that the vast majority of you did pay the tax on the 2014 payments, for which you should have received a tax slip (T4 or T4A). If you did pay your taxes, you do not need to take any action. You can keep the letter in your records as confirmation that your Notice of Objection was filed on time.

  If you have received a letter that states otherwise and you have questions about it, please contact us at nortel@kmlaw.ca or call us at 1-866-777-6344.

• July 21, 2016

  The Tax Court of Canada will hear the Test Case Appeals on August 25, 2016. For further information on the tax case appeals please visit our Tax Appeal tab by clicking here.

• July 13, 2016

  The wind up report for the Managerial and Non-Negotiated Pension Plan was approved by the Financial Services Commission of Ontario (“FSCO”) on June 30, 2016. For further information please see our Wind Up tab by clicking here.

• July 8, 2016

  Koskie Minsky has mailed out a survey to members of the Managerial Plan in preparation for information sessions that will take place in the fall to explain the final steps of the pension windup and help members understand and complete their options forms. For more information on this survey and to access it directly please visit our “Wind Up of Nortel’s Registered Pension Plans” tab by clicking here.

• May 5, 2016

  We are pleased to report that on Thursday, May 5, 2016 the Supreme Court of Canada denied the leave to appeal application of the Ad Hoc Bondholders with respect to the “interest stops rules” and granted costs against them. To view a copy of the decision please click here.

  The leave to appeal decision followed a decision on Tuesday, October 13, 2015 from the Ontario Court of Appeal unanimously dismissing the Bondholders’ appeal, with costs also. The issue was whether the “interest stops rule” applies in CCAA proceedings. The Court of Appeal held at paragraph 8 that “there are sound legal and policy reasons for applying the interest stops rule in the CCAA context”. The Court adopted the CCC and Monitor’s submission that pari pasu and the status quo is not preserved if one group of creditors gets post-filing interest and the other is prevented from asserting their rights to sue and obtaining judgment with interest. To view a copy of the Court of Appeal decision please click here.

  The issue of post-filing interest was first raised during the allocation trial. The Canadian and US Courts requested submissions from the parties and based on these submissions the courts agreed to a joint hearing on the entitlement of post-filing interest. The hearing in the US was adjourned but the hearing proceeded in the Ontario Superior Court of Justice (Commercial List) on July 25, 2014. On August 19, 2014, Justice Newbould released a decision finding that Nortel Bondholders were not entitled to post-filing interest in the Canadian allocation proceeding. To view a copy of the decision of the Ontario Superior Court of Justice (Commercial List) please click here.

• May 4, 2016

  Judge Leonard P. Stark of the District Court of Delaware made the following oral order today:

  Case Name: Nortel Networks Inc. v. Official Committee of Unsecured Creditors et al
  Case Number: 1:15-cv-00624-LPS
  Filer:
  Document Number: 111 (No document attached)

  Docket Text:
  ORAL ORDER: IT IS HEREBY ORDERED that, in light of the decision yesterday of the Court of Appeal for Ontario to dismiss the motions for leave to appeal from the related Canadian court decision, no later than Monday, May 9, 2016, the parties shall submit short letter briefs providing their position and reasoning on whether this Court can and should now certify a direct appeal to the Court of Appeals for the Third Circuit. ORDERED by Judge Leonard P. Stark on 5/4/16. (ntl)

  On April 5, 2016, Judge Stark heard the appeal by US Interests of the allocation decision of Judge Gross of May 12, 2015 and had reserved his decision. We will advise as soon as further information is available.

  For more information regarding the proceedings please visit our Allocation Litigation Tab by clicking here.

• May 3, 2016

  We are pleased to report that on May 3, 2016, the Ontario Court of Appeal denied the leave to appeal applications of various US interests to appeal the May 12, 2015 decision of the Ontario Superior Court of Justice (Commercial List) requiring the allocation of assets from the sale of Nortel’s businesses and intellectual property be based on a pro rata approach. To view a copy of the decision please click here.

  The appeal of the allocation decision was heard on April 5, 2016 in the United States District Court for Delaware. The court reserved its decision and we will advise as soon as it is available.

  For more information regarding the allocation litigation please visit our Allocation Litigation tab by clicking here.

• March 31, 2016

  The United States District Court for Delaware will hear the appeal of the allocation decision of Judge Gross dated May 12, 2015 at 9 am on April 5, 2016 in Wilmington, Delaware.

  As previously reported, on May 12, 2015 the Ontario Superior Court of Justice (Commercial List) and the United States Bankruptcy Court released consistent decisions requiring the allocation of assets from the sale of Nortel’s businesses and intellectual property be based on a pro rata approach. Following these decisions, the US Interests, including the US Debtors and the Ad Hoc Group of Bondholders, filed motions in the US appealing the decision and seeking leave to appeal of the decision in Canada.

  We will provide updates regarding the result of both the US and Canadian appeals as they become available. For more information regarding the background and status of the appeals please visit our Allocation Litigation tab by clicking here.

• March 18, 2016

  The Ontario Superior Court of Justice (Commercial List) extended the stay period and the deadline for filing a Hardship Application to September 30, 2016.

• March 1, 2016

  If you received a payment from the Nortel Health and Welfare Trust (“HWT”) in 2014 in connection with the termination of group term life insurance coverage or in connection with the termination of Survivor Benefits you will be receiving an Objection package in the mail by mid-March 2016. If you do not receive a package by March 15, 2016 and believe you received a life insurance or survivor benefit payment from the HWT in 2014 that was taxable, please contact us at 1-866-777-6344 or nortel@kmlaw.ca

  For more information regarding this please visit our Tax Appeal tab by clicking here.

• November 27, 2015

  As part of the information sessions being hosted to provide Negotiated Plan members with information about their options, there were three webinars held on November 26 and 27, 2015.

  The archived webinars (slides + audio) are available at these links:

  Date/Time	Purpose	Web link (with audio)
  November 26, 2015 at 10 am EST	Non-Quebec members (English)	http://bell.media-server.com/m/p/t98vu4q3
  November 26, 2015 at 1 pm EST	Quebec members (English)	http://bell.media-server.com/m/p/t5x2dned
  November 27, 2015 at 10 am EST	Quebec members (French)	http://bell.media-server.com/m/p/zxfite37

  Additional information that you may find helpful is available at the Wind Up of Nortel’s Registered Pension Plans link by clicking here.

• November 23, 2015

  Option Forms for Negotiated Plan members commenced being mailed on November 16, 2015 and expect to be completed by today. As part of the Option Form packages, there is information regarding live sessions.

  The first three live webinars which differ in content and language are:

  Date/Time	Purpose	Web link (with audio)
  November 26, 2015 at 10 am EST	Non-Quebec members (English)	http://bell.media-server.com/m/p/t98vu4q3
  November 26, 2015 at 1 pm EST	Quebec members (English)	http://bell.media-server.com/m/p/t5x2dned
  November 27, 2015 at 10 am EST	Quebec members (French)	http://bell.media-server.com/m/p/zxfite37

  Please review carefully and select the webinar that is applicable to you.

  A dial-in audio-only option will be available to individuals who do not have internet access and wish to listen in to the above listed webinar. If you do not have access to the internet and would like to listen in to the webinar, please leave a message on Koskie Minsky’s toll free hotline at 1.866.777.6344 indicating your name, telephone number and that you wish to participate in the webinar by telephone. A Koskie Minsky representative will call you back to provide you with details about how to dial in. Please ensure you register by 5 pm on Wednesday, November 25, 2015.

  If you are unable to attend your preferred webinar session, all of them will be available for viewing on the KM and the NRPC websites after 24 hours after the live session.

  The full meeting schedule for Negotiated Plan members who retired outside of Quebec is available here.

  The full meeting schedule for members who retired from Nortel in Quebec is available here.

  For more information regarding the wind up of the Negotiated Plan please visit our Wind Up of Nortel’s Registered Pension Plans tab by clicking here.

• November 13, 2015

  The wind up report for the Managerial Plan was filed on November 13, 2015. We will advise you when it has been approved. A similar process to that followed with the Negotiated Plan will apply. For further information please see our Wind Up tab by clicking here.

• October 13, 2015

  We are pleased to report that on Tuesday, October 13, 2015, the Ontario Court of Appeal unanimously dismissed the Bondholders’ appeal, with costs. For more information please visit our Allocation Litigation Tab here, or to view a copy of the decision of the Court of Appeal please click here.

• October 2, 2015

  The Ontario Superior Court of Justice (Commercial List) extended the stay period and the deadline for filing a Hardship Application to April 1, 2016. To see a copy of the Court Order please click here.

• September 15, 2015

  The wind up report for the Negotiated Plan was approved by the Financial Services Commission of Ontario (“FSCO”) on September 15, 2015. For further information please see our Wind Up tab by clicking here.

• July 31, 2015

  Notice of leave to appeal has been filed in Ontario by various US Interests, including the US Debtors, Bondholders, Unsecured Creditors Committee (UCC), the Bank of NY Mellon and a newly formed trade creditor consortium. In addition, a newly appointed conflict administrator on behalf of French Estate provided notice to stakeholders of their intention to seek leave to appeal.

  In the US, notices of appeal were filed by the US Debtors, Bondholders, Pension Benefits Guarantee Corporation (PBGC) and the UCC. Cross appeals were filed by the Trade Claims Consortium, as well as the UK Joint Administrators, the Monitor and the CCC.

  For more information on the appeals and next steps, please visit our Allocation Litigation Tab by clicking here.

• July 7, 2015

  On July 6, 2015, the Ontario Superior Court of Justice (Commercial List) and the United States Bankruptcy Court released decisions denying reconsideration of issues raised by the US Interests while providing clarifications further to the May 12th allocation decisions.

  For more information please visit the Allocation Litigation tab by clicking here.

• July 6, 2015

  The Tax Court of Canada will hear the Test Case Appeals on August 20, 2015. For further information on the tax case appeals please visit our Tax Appeal tab by clicking here.

• June 7, 2015

  A joint hearing of the US and Canadian courts is scheduled for June 25, 2015 to determine some points of clarification following the decisions of the Ontario Superior Court of Justice (Commercial List) and the U.S. Bankruptcy Court dated May 12, 2015. For further information please visit our Allocation Litigation Tab by clicking here.

• May 12, 2015

  We are very pleased to report that on May 12, 2015, the Ontario Superior Court of Justice (Commercial List) and the United States Bankruptcy Court released consistent decisions requiring the allocation of assets from the sale of Nortel’s businesses and intellectual property be based on a pro rata approach. The “lockbox” of funds from the patent and business sales is to be allocated proportionately based on the aggregated claims in each of the three jurisdictions. All creditors, including Canadian pensioners and disabled employees, are to receive a fair and equitable payment of their claims. The decisions take an unprecedented approach, and are a major breakthrough in the cross-border litigation.

  The Canadian Creditor’s Committee (CCC), representing employee and pension interests, advocated  pro rata as the most equitable allocation method, and it best reflected the reality of the way that Nortel functioned globally as a highly integrated organization.

  To view a copy of the decision of Justice Newbould of the Ontario Superior Court of Justice (Commercial List) please click here. 

  To view a copy of the opinion of Judge Gross of the U.S. Bankruptcy Court please click here. To view a copy of Judge Gross’ Allocation Order please click here.

  For more information regarding the allocation dispute, including pleadings and summaries of the proceedings, please visit our Nortel Allocation Litigation tab.

• April 7, 2015

  A Disabled Progress Report was mailed out on April 7, 2015. To view a copy, please click here.

• March 11, 2015

  On March 11, 2015, the Ontario Superior Court of Justice (Commercial List) increased the maximum amount that can be applied for from the Hardship Fund as follows:

  i. Former employees (including LTD beneficiaries) are now eligible to apply for a maximum payment of up to 16 weeks of salary based on a maximum weekly salary of up to $1,200 per week. A further $5,000 can be awarded at the discretion of the hardship committee in the case of medical or other emergency (for a total maximum of $24,200); and

  ii. Pensioners and Survivors are now eligible for a maximum payment of $10,000.

  For information on the increases, as well as the eligibility requirements and procedure please click here.

  The Court also extended the stay period to October 2, 2015.

  To see a copy of the Court Order please click here.

• March 10, 2015

  The Monitor recently sent T4 slips for distributions made from the Health and Welfare Trust (HWT) to Pensioners on account of Pensioner Life in late March 2014. If you have questions about the tax slip please click here to view a copy of our FAQ or send us an email at Nortel@kmlaw.ca or call our toll-free hotline at 1-866-777-6344.

• December 9, 2014

  Justice Newbould released his decision denying all but one claim asserted by the UK Pension Claimants against the Canadian Debtor. He allowed their claim to a Funding Guarantee. For further information please see our Allocation Litigation tab by clicking here.  A copy of the decision of Justice Newbould can be viewed here.

• November 27, 2014

  The Ontario Court of Appeal granted the Ad Hoc Group of Bondholders leave to appeal application for one of the three issues raised. The Court will consider whether the “interest stops rule” was correctly applied. That is, whether Newbould J. erred in deciding that the Guaranteed Bondholders are not entitled to claim or receive post-filing interest and other amounts owing under the relevant debtentures above and beyond the outstanding principal debt and pre-petition interest. A copy of the decision of the Ontario Court of Appeal granting leave to appeal can be viewed here. For further information please see our Allocation Litigation tab by clicking here.

• October 3, 2014

  The Ontario Superior Court of Justice (Commercial List) extended the stay period and the deadline for filing a Hardship Application to April 3, 2015. To see a copy of the Court Order please click here. [link no longer active]

• September 24, 2014

  Closing arguments in the trial to determine the allocation of Nortel’s assets were heard on September 22-24, 2014. To view summaries of these proceedings and for more information regarding the Allocation Litigation, please click here.

• September 22, 2014

  A Disabled Progress Report was mailed out on September 22, 2014.

• September 19, 2014

  Closing arguments for the trial to determine the allocation of Nortel’s assets will be heard on September 22-23, 2014 at the Superior Court of Justice (Commercial Court) located at 330 University Avenue in Toronto in courtrooms 8-1 and 8-2 starting at 9 am. For further information regarding the Allocation Litigation please click here.

• August 20, 2014

  On August 19, 2014, Justice Newbould of the Ontario Superior Court of Justice (Commercial List) released a decision finding that Nortel Bondholders were not entitled to post-filing interest in the Canadian allocation proceeding. For more information and to view the decision please click here. 

• June 23, 2014

  The trial to determine the allocation of Nortel’s assets began May 12th and the evidentiary portion is set to continue until June 26th. Further information regarding the trial and the positions of the parties are provided in the pre-trial briefs provided at the Allocation Litigation tab that can be accessed by clicking here.

• March 28, 2014

  On December 2, 2013, the Monitor posted a Notice of Declared Distribution on its website declaring a distribution from the Health and Welfare Trust (HWT) to Participating Beneficiaries on account of their Participating Benefits calculated in accordance with the Court-approved HWT Allocation Methodology.

  The distribution on account of Pensioner Life to Pensioners was made today, March 28, 2014.

  The distribution to LTD and Survivors was paid on December 6, 2013.

  To view further information on the HWT distributions please visit our Health and Welfare Trust tab by clicking here.

• March 21, 2014

  The Ontario Superior Court of Justice (Commercial List) extended the stay period and the deadline for filing a Hardship Application to October 3, 2014. To see a copy of the Court Order please click here. [link no longer active]

• December 4, 2013

  A Disabled Progress report was mailed out on December 4, 2013.

• December 3, 2013

  Following a hearing on November 19, 2013, Justice Morawetz of the Ontario Superior Court of Justice (Commercial List) approved a revised litigation timetable setting the date of the beginning of the trial for May 12, 2014 and continuing for 19 trial days thereafter.  To view a copy of the Order of Justice Morawetz entered and filed with the court on December 3, 2013, please click here.

  A similar order was issued by Judge Gross of the US Court on November 27, 2013. To view a copy of the order of Judge Gross, please click here.

• December 2, 2013

  On December 2, 2013, the Monitor posted a Notice of Declared Distribution on its website declaring a distribution from the Health and Welfare Trust (HWT) to Participating Beneficiaries on account of their Participating Benefits calculated in accordance with the Court-approved HWT Allocation Methodology. The Notice of Declare Distribution can be viewed here. [links no longer active]

  Distributions to LTD, SIB and STD Beneficiaries will be paid on December 6, 2013.

  The date for distributions on account of Pensioner Life to Pensioners will be posted on the Monitor’s website in 2014.

  To view a copy of the court order approving the distribution, please click here.

• October 29, 2013

  The Ontario Superior Court of Justice (Commercial List) extended the stay period and the deadline for filing a Hardship Application to April 1, 2014. To see a copy of the Court Order please click here.

• May 1, 2013

  The Ontario Superior Court of Justice (Commercial List) extended the stay period until October 31, 2013. In addition, the Court extended the deadline for filing a Hardship Application to October 31, 2013 and increased the amount available in the Hardship Fund. To see a copy of the Court Order please click here.

• April 8, 2013

  On April 8, 2013, a letter was sent to the Department of Justice by Norman Tobias, Tax Counsel at Koskie Minsky LLP, requesting a response to the correspondence from Koskie Minsky LLP and the notice of objections that have been filed to-date. To see a copy of this letter please click here.

• April 3, 2013

  On April 3, 2013, Justice Morawetz and Judge Gross released written reasons for their March 8, 2013 approval of the Allocation Protocol and set January 6, 2014 as the date on which both courts will commence hearing the trial for the remaining claims and allocation issues.

  To view a copy of the Endorsement of Justice Morawetz please click here.

  To view a copy of Opinion of Judge Gross please click here and to view a copy of the Order of Judge Gross please click here.

• April 1, 2013

  For those who received one or more payment(s) out of the Nortel Health and Welfare Trust (“HWT”) in 2011 in connection with the termination of group term life insurance coverage, or in connection with the termination of Survivor Benefits, the deadline to submit your Notice of Objection is April 30, 2013. 

  If you have any questions please e-mail us at nortel@kmlaw.ca or call us on our hotline at 1-866-777-6344.

• March 20, 2013

  A Disabled Employees Progress Report was mailed out on March 20, 2013.

• March 8, 2013

  On March 8, 2013, Justice Morawetz and Judge Gross released decisions approving the Allocation Protocol that was originally before the court in June 2011. The Allocation Protocol provides for the U.S. and Canadian Courts to determine the claims and allocation issues that remain before the parties.

  For more information please visit our Allocation Litigation tab at the following link.

• March 4, 2013

  A webinar was held on February 14, 2013. To view the answers to questions that were received before and during the webinar please click here.

  To view the archived version of the webcast held on February 14,2013 please click on the following link [Link no longer available]:

  http://bellwebcasting.ca/audience/index.asp?eventid=46152239

• February 25, 2013

  Tax slips were mailed out by the Monitor, Ernst & Young, today to those who received payments from Nortel in 2012 in respect of various sources of income in 2012. If you received a payment from the Termination Fund, the Health and Welfare Trust or the Hardship Fund in 2012 and have not received your tax slips please contact the Monitor at 1-866-942-7177.

  For those who are receiving pensions, please note that Northern Trust, the custodian of the registered pension plans in January 2012 and February 2012, sent tax slips a couple of weeks ago and there were a number of incorrect addresses. The custodian of the pension plan from March 2012 to December 2012, CIBC Mellon, will also be sending their tax slips shortly. If you have not received your tax slip for your payments or it went to the wrong address and you were still able to pick it up, please make sure that Morneau Shepell, the administrator of the registered pension plan, has your correct address. Please contact Morneau directly by calling:

  Negotiated Plan Members: 1-877-392-2073

  Managerial Plan Members: 1-877-392-2074

• February 14, 2013

  The webinar will be presented in English with slides in English. The French slides are available for you at the following link and you will be able to ask questions in French and have a response in French.

  If you have any questions following the webinar, please don’t hesitate to ask them by e-mail at nortel@kmlaw.ca.

• February 14, 2013

  Upcoming Webinar:

  Koskie Minsky will be hosting a webcast on February 14, 2013 from 1:00 – 2:00 p.m.  The webinar will provide an update on an upcoming communication from the pension administrator, Morneau Shepell, as well as various issues expected to be addressed in the coming months.

  Presenters at the webinar will include: Hamish Dunlop of Morneau Shepell, Don Sproule of the NRPC as well as various financial and legal advisors.

  Please click here to view the February 14th webcast slides.

  Participants can register for the webcast through the following link [Link no longer available]: http://www.bellwebcasting.ca/audience/index.asp?eventid=46152239

  A dial-in audio-only option will be available to individuals who do not have internet access and wish to listen in to the webinar. If you do not have access to the internet and would like to listen in to the webinar, please leave a message on Koskie Minsky’s toll free hotline at 1.866.777.6344 indicating your name, telephone number and that you wish to participate in the webinar by telephone.  A Koskie Minsky representative will call you back to provide you with details about how to dial in.

• February 11, 2013

  In the coming weeks, you will receive T4 or T4A slips (or R1 slips if you reside in Quebec), in respect of the various sources of Nortel income that you received in 2012. Depending on the types of payments you received in 2012, you may receive more than one slip related to Nortel.

  Individuals who received payments in 2012 from Nortel’s registered pension plans will receive a tax slip issued by Northern Trust and CIBC Mellon as there was a change in custodian in 2012. The tax slips from Northern Trust reflect payments made in January 2012 and February 2012 and were mailed last week, so please watch your mail. The tax slips from CIBC Mellon reflect payments made from March 2012 to December 2012 and will be mailed in the next few weeks.

  You may also receive separate T4A, T4 or R1 slips for other payments you may have received by or through Nortel in 2012, including certain distributions from the Nortel Health and Welfare Trust. These tax slips will be mailed out in the next few weeks.

• February 1, 2013

  U.S. Counsel has filed a notice of motion with respect to certain pre-filing terminated employees for claims against the U.S. Debtor for termination and severance. For more information please visit the LinkedIn group “Recently Severed Canadian Nortel Employees”. If you are not a member, please join the group by visiting the following link: http://www.linkedin.com/groups?gid=1770226&trk=hb_side_g

• January 31, 2013

  The Ontario Superior Court of Justice (Commercial List) extended the deadline for submitting applications as part of the Employee Hardship Application Process as well as the stay period until May 3, 2013.

• January 24, 2013

  The Honourable Justice Warren K. Winkler, Chief Justice of Ontario ended the mediation that started on January 14, 2013 today, announcing that a mediated agreement was not reached.

• January 11, 2013

  A Notice has been sent by the NRPC to approximately 300 former Nortel employees. If you have any questions regarding this Notice please see the LinkedIn group “Recently Severed Canadian Nortel Employees”. If you are not a member, please join the group by visiting the following link: http://www.linkedin.com/groups?gid=1770226&trk=hb_side_g

• November 14, 2012

  Chief Justice Winkler has scheduled a mediation session in Toronto the week of January 14 to 18, 2013 to resolve all matters relating to the allocation of Nortel’s assets. For more information regarding the mediation, please click here.

• October 30, 2012

  The Ontario Superior Court of Justice (Commercial List) extended the deadline for submitting applications as part of the Employee Hardship Application Process as well as the stay period until February 2, 2013.

• October 4, 2012

  A mailing was recently sent to those individuals who received one or more payment(s) out of the Nortel Health and Welfare Trust (“HWT”) in 2011 in connection with the termination of group term life insurance coverage, or in connection with the termination of Survivor Benefits.

  For more information please refer to the Nortel Tax Appeal Tab available here.

• August 31, 2012

  A Disabled Employees Progress Report was mailed out on August 30, 2012. To view a copy, please click here.

• August 3, 2012

  Updated Hardship Fund Eligibility Criteria

  On July 27, 2012 the Court approved the expansion of the scope of the Hardship Fund to include Nortel pensioners and survivors, allowing them to apply for a payment from the Fund for circumstances which satisfy the requirements. Payments from the Hardship Fund are treated as an advance on future distributions, so any amount awarded will be deducted from the recipient’s ultimate Compensation Claims recovery from the Nortel estate.

  The Hardship Fund has been in place since July 30, 2009. It was originally established in response to urgent financial need experienced by former Nortel employees who had no income because they lost their job with Nortel. Small lump sum payments of up to 8 weeks’ salary (based on a maximum weekly salary of up to $1,200 per week) were made to individuals who qualified under the terms of the Fund as an “advance” on any future distribution to be made on their claims against the Nortel estate.  The Hardship Fund committee also had discretion to approve payments in cases of medical or other emergencies in an amount of up to $2,500.

  Nortel pensioners and survivors were ineligible under the original version of the Hardship Fund Eligibility Criteria. Since the pension cutbacks last summer, however, the Court-appointed Representatives became aware of situations of serious financial hardship among pensioners and sought the expansion that was approved by the Court on July 27.

  If you are a Nortel pensioner or survivor and you are in a position of immediate financial hardship, you may request a payment from the Fund by completing a Hardship Payment Application.  Koskie Minsky can help you complete this form.  This will be a private and confidential process, and you will not be required to share your personal information with anyone other than the Monitor, who is responsible for assessing your application, and your Representative Counsel. 

  Eligibility: In order to be eligible for a Hardship Payment, there are certain criteria you must satisfy, including:

  • You must be a member of one of Nortel’s defined benefit pension plans
  • You must have had your pension reduced effective August 2011
  • You must have a Compensation Claim against Nortel (i.e. you received an Information Statement through the Compensation Claims process)

  In addition, you must demonstrate that you are in a situation of urgent or immediate financial hardship. Typical examples of financial hardship include the inability to cover your required drug costs, to pay your rent or to buy groceries.  If you are experiencing hardship but you are unsure whether your situation qualifies under the expanded criteria, please contact Koskie Minsky at 1.866.777.6344 to discuss your situation.

  Note: The maximum amount that will be payable to you under the expanded criteria is $5,000. It is not guaranteed that you will be approved for a payment, and if you receive a payment it may not be for the maximum $5,000 amount. Any amount that you do receive will be subject to applicable taxes, and the payment will be a lump sum advance on your distribution from the Nortel estate. To be clear, your ultimate distribution from the Nortel estate will be reduced by any amount that you are awarded from the Hardship Fund.

  The updated Eligibility Requirements and the Hardship Payment Application Form will be available through the Monitor’s website at www.ey.com/ca/nortel, Koskie Minsky’s website at www.kmlaw.ca and the NRPC website at www.nortelpensioners.ca.   If you have any questions, please contact Koskie Minsky at 1.866.777.6344.

• May 28, 2012

  Important Message – Timeline for filing a Notice of Objection

  As you may be aware, on July 19, 2011 the Canada Revenue Agency (“CRA”) issued adverse tax rulings which provided that lump sum payments made in connection with the termination of group term life insurance, survivor income benefits and survivor transition benefits are to be included in income and subject to tax.

  Discussions are ongoing between Koskie Minsky LLP, your Representative Counsel and Department of Justice lawyers regarding the process by which the correctness of the adverse tax rulings issued will be tested in the Tax Court of Canada.

  We have received questions about the deadline for filing a notice of objection to your assessment for the 2011 taxation year.  Given the time that may have already elapsed since the date that appears on your notice of assessment in respect of the 2011 taxation year, you should be aware that an individual must object by the later of: i) 90 days after the date of sending of the notice of assessment; and ii) one year after your filing due date for the year. 

  The later of the two relevant deadlines by which you must file a notice of objection to your assessment in respect of the 2011 taxation year is the date that is one year after your filing due date for the 2011 taxation year.  Generally, the filing due date for your 2011 year is April 30, 2012. For those who carried on a business in 2011, the filing due date is June 15, 2012. Therefore you have at least until April 30, 2013 to file an objection.

  After the details concerning the process by which the adverse tax rulings issues will be tested have been finalized, an information package will be mailed to affected pensioners and LTD life beneficiaries. The information package will set out specific instructions for filing a notice of objection. Please be patient until you receive this information package, as we have plenty of time left to file.

• May 2, 2012

  Update on Compensation Claims Process 
   
  The Monitor has been reviewing the Requests for Correction and Proofs of Claim received.  There were a total of approximately 2000 Requests for Correction and Proofs of Claim received.  The process of review consists of identifying the requested corrections or claim, reviewing supporting documentation and communicating with the claimants for additional clarification or documentation where necessary.  This detailed process is necessary to ensure the Requests for Correction and Proofs of Claim are accurately and fully understood before any determinations are made regarding the claims.

  In order to expedite matters, the Monitor is not waiting until responses to all 2000 of the Requests for Correction and Proofs of Claim have been prepared to begin responding. The Monitor will be sending responses to approximately 400 of them in the next several days.  The Monitor will be responding to the balance in similarly sized batches over the next number of months.  

  PLEASE NOTE: YOU DO NOT HAVE TO DO ANYTHING IF YOU FILED A REQUEST FOR CORRECTION OR A PROOF OF CLAIM.  THE MONITOR WILL RESPOND IN DUE COURSE. THE FACT THAT SOME PEOPLE WILL RECEIVE A RESPONSE BEFORE OTHERS HAS NO SIGNIFICANCE.  

• April 24, 2012

  As you may be aware, the Court-appointed Representatives, through their legal counsel Koskie Minsky LLP, will be testing the correctness in law of certain Advance Income Tax Rulings adverse to taxpayers that were issued by the CRA in July 2011 to the effect that lump sum payments made in connection with the termination of group term life insurance coverage and in connection with termination of survivor income benefits are to be included in income subject to tax (the “Tax Court References”).

  After you file your income tax returns, CRA will send you an assessment. Individuals who wish to preserve their entitlement to have their 2011 taxation year reassessed in the event of a favourable outcome on one or both of the Tax Court References must file a Notice of Objection in a timely manner to the assessment received from CRA in respect of the 2011 year (and 2012 year return when applicable). Those individuals resident in Québec must also file a Notice of Objection in a timely manner to the assessment received from Revenu Québec in respect of the same year or years.

  Koskie Minsky is in the process of preparing a package of information elaborating upon the manner in which the affected individuals can preserve their rights to be reassessed in the event of a favourable outcome on the Tax Court References. Please be patient.  You will receive this package in the coming weeks.  

  Important Note:  Only object to your 2011 assessment if you received a T4A for these benefits that is dated 2011.  If you did not receive a 2011 T4A, you do not have to object at this time.  

• April 2, 2012

  A letter was mailed today on behalf of the court appointed representatives to deferred pensioners of the Nortel pension plans. To view this letter, please click here.

• March 26, 2012

  On March 20, 2012, Justice Morawetz of the Ontario Superior Court of Justice released written reasons related to an Endorsement of October 6, 2011 in which the Court refused to grant an adjournment of the motion for Court approval of the Nortel Compensation Claims Process. The Nortel Compensation Claims Process was approved by the Court on October 6, 2011 and is now underway. To view a copy of the October 6 and March 20 Endorsements, please click here.

• March 5, 2012

  We are pleased to report that on March 2 the Court approved a HWT distribution to the LTD Beneficiaries and Survivors.   The distribution is expected to be paid in mid to late March 2012.  Please click here to obtain more information about the upcoming distribution.  If you wish to view a copy of the Court Order, please click here.

• February 22, 2012

  In the coming weeks, you will receive T4 or T4A slips (or R1 slips if you reside in Quebec), in respect of the various sources of Nortel income that you received in 2011. Depending on the types of payments you received in 2011, you may receive more than one T4A related to Nortel.

  Individuals who received payments in 2011 from Nortel’s registered pension plans will receive a tax slip issued by Northern Trust. The Payee name on this slip will refer to ‘TNTC as paying agent’ and also should make reference to the Nortel Networks Pension Plans. These tax slips were mailed last week, so please watch your mail.

  You will receive separate T4A, T4 or R1 slips for other payments you may have received by or through Nortel in 2011, including certain distributions from the Nortel Health and Welfare Trust. Please note that the tax slip(s) you receive will not include any HWT distribution amounts that you received on account of LTD income benefits. Your tax slip will include amounts you received from the HWT on account of LTD Life, LTD Optional Life or Pensioner Life, as these amounts are subject to tax. These tax slips will be mailed on or before February 29, 2012. You should not expect to receive your tax slip(s) related to these payments until early March of 2012.

• January 31, 2012

  We are pleased to report that on March 2 the Monitor will be seeking Court approval for a proposed HWT distribution to the LTDs Beneficiaries and Survivors.

  Several weeks ago, the court-appointed Representatives through legal counsel asked the Monitor to consider paying a further HWT distribution before all outstanding financial and accounting matters are finalized. The Monitor has now concluded that it is reasonable to pay such a distribution to the LTD Beneficiaries on account of their income and life benefits (other than pensioner life) and to the Survivors on account of their income benefits.

  The Monitor is proposing to distribute 10% of the Income Benefits and LTD Life and Optional Life Benefits. The proposed distribution would bring the total of all distributions on these benefits to 35%, which exceeds the original illustration of 33.8. This further 10% distribution is anticipated to be approximately the final distribution for these benefits, but one that will be subject to adjustment once the outstanding financial and accounting matters are finalized. The adjustment could be in the form of either a further distribution from the HWT on these benefits or, if necessary, a deduction from future distributions on pensioner life (if you are entitled to pensioner life) or, if insufficient, from future recoveries against your Compensation Claims in the Nortel estate, whenever these occur.

  There will not be a distribution on account of pensioner life or to pensioners at this time.

  The proposed distribution is subject to Court approval, which will be sought on March 2, 2012. If the distribution is approved by the Court on March 2, it is expected the distribution will be paid sometime in March. Information about the specific date of the proposed payment is not yet available. If you would like to obtain information about how much the proposed payment to you will be, please refer to the Beneficiary Estimated Allocation Statement (‘BEAS’) that you received in the past. If you are an LTD Beneficiary, the proposed distribution will be 10% of your LTD Income, LTD Life and Optional Life Benefits. If you are a Survivor, the proposed distribution will be 10% of your Income Benefit. As was the case in the past, distributions in respect of LTD Income Benefits are not subject to tax. However, taxes will be withheld from distributions made on account of Survivor income benefits, LTD Life Benefits and LTD Optional Life Benefits.

• January 10, 2012

  Please note that the deadline to submit most Form Bs and Proof of Claim forms has passed as of 4:00pm EST on January 6, 2012. If you have not yet received an Information Statement package, please contact the Monitor, Ernst & Young, at 1-866-942-7177 or nortel.monitor@ca.ey.comto inquire whether an Information Statement package was prepared for you.

  If you have recently moved and have not reported your change of address, please complete a Change of Address Form.

• December 3, 2011

  Cheques for Partial Payment of Pensioner Life Insurance Claims are Being Mailed

  The Court on November 8, 2011 approved an interim distribution from the Nortel Health and Welfare Trust (HWT) on account of Pensioner Life.  The first instalment from the assets of the HWT is now being mailed by E&Y as a cheque. The bulk of the cheques have now been mailed, but some 600 are awaiting clearance and may take until December 16 to process. We will let you know when the last mailing has taken place.  We request that you wait until at least December 16 to contact E&Y if you do not have your cheque.

  If you have entitlement to a claim for “Pensioner Life (including ADB, if applicable)” based on data available as of December 31, 2010, you should shortly be receiving a cheque for 20% of your Form A claim amount minus withholding tax.

  If you believe you have a valid claim for Life Insurance and it was not reflected in your Form A claims document, you should submit a Form C to E&Y. Please note that not all pensioners have Life Insurance claims.

  As Nortel’s HWT proceeds to be wound up, we expect there will be a second and smaller distribution (~5 to 7%) from the HWT sometime in 2012. We will keep you apprised of developments.

  The residual amount of your Pensioner Life claim (total claim minus the two instalments from the HWT) will be a claim on the Nortel Canadian estate payable at cents on the dollar when the estate is settled.

  Also note that the NRPC along with KM are working to remove the taxation of the Life Insurance benefits. If we are successful, you may have to re-file your 2011 income tax to recover taxes paid. Hold on to your tax documents. Again we will keep you apprised of developments.

  Please Note:  There are a small number of individuals who received their Pensioner Life distribution payment by direct deposit in mid-November.  If you have already received a direct deposit payment for this interim HWT distribution on account of Pensioner Life, then you will not receive a cheque in December.  If you are a Nortel pensioner who has not received a direct deposit payment from the Nortel HWT in the past, then any HWT distribution you receive will be paid by cheque.  

  Pensioners who have a claim for Pensioner Life will receive HWT distributions on account of Pensioner Life in the range of approximately 27-28% of entitlement. As outlined in the Monitor’s Seventy-Sixth Report to the Court, the Monitor believes the total ultimate distribution from the HWT is likely to meet or exceed 33.8% of the value of the Participating Benefits. However, the value of the Pensioner Life relating to Pensioners will be reduced as a result of actual 2010 Pensioner Life premiums. The effective distribution to Pensioners, taking into account the 2010 premiums, as shown in the illustrative scenario is 27.6%.

  The HWT distributions to survivors and disabled employees will not be subject to any reduction for 2010 Pensioner Life premiums. This applies to all survivor and disabled benefits, including distributions to disabled employees for Pensioner Life. Therefore, disabled employees who have a claim for Pensioner Life are likely to receive at least 33.8% of their Pensioner Life entitlement through distributions from the HWT.

  These projections still remain subject to contingencies.

• November 11, 2011

  To view the archived versions of the webcasts held on November 10 and 11, 2011 please click on the following links [Links no longer available]:

  Webinar for all Former Employees of Nortel November 10, 2011 http://www.bellwebcasting.ca/audience/index.asp?eventid=14184206 Webinar for all Nortel LTD Beneficiaries November 10, 2011 http://www.bellwebcasting.ca/audience/index.asp?eventid=60511415 Webinar for all Former Employees of Nortel (French) November 11, 2011 http://www.bellwebcasting.ca/audience/index.asp?eventid=71340578

   

• November 9, 2011

  INTERIM HWT DISTRIBUTION IN RESPECT OF PENSIONER LIFE INSURANCE

  The Court on November 8, 2011 approved an interim distribution from the Nortel Health and Welfare Trust (HWT) on account of pensioner life insurance. To view a copy of the Order, please click here. This means that each pensioner and disabled employee who has an entitlement to pensioner life insurance can expect to receive a distribution from the Nortel HWT before the end of 2011.

  Interim distributions have previously been made from the HWT in relation to LTD Income, SIBs, STBs and LTD Life and LTD Optional Life.  No interim distribution has yet been made on account of pensioner life insurance benefits, as the process for confirming pensioner life entitlements, including relevant personal information and level of coverage, for making distributions to pensioners was not as advanced as it is for the LTD beneficiaries of the trust.

  The Former Employees’ Representatives and the CAW requested that a distribution be made as soon as practicable to pensioners in order to alleviate to some extent any hardship pensioners may be experiencing as a result of the recent reductions to registered monthly pension payments.  The LTD Beneficiaries’ Representative and the CAW have also requested that a distribution be made to LTD Beneficiaries on account of their future pensioner life insurance claims from the HWT. Given these concerns, the Monitor recommended to the Court that an interim distribution be made to all Participating Beneficiaries of the Nortel HWT who are entitled to pensioner life based on the date and claims value established for the Compensation Claims Process.  The payment to be made is at the level of 20% of the total Pensioner Life liability and will result in an aggregate distribution of approximately $22.2M to Pensioner and LTD Beneficiaries of the trust. The Monitor is of the view that this recommended level of distribution will permit adjustment in a future distribution both for corrected personal information and to adjust for any difference in the HWT Allocation Methodology and the Compensation Claims Methodology.  Therefore, no prejudice will result from this interim distribution.

  The Representatives and their advisors, including Independent Counsel, and the CAW agree that an interim distribution to Participating Beneficiaries on account of Pensioner Life should not be delayed while Pensioner Life data and claims values are being confirmed.

  The Monitor’s motion was approved by the Court on November 8, 2011.  It is now expected that this interim HWT distribution will take place before the end of the 2011.  Distributions in respect of life insurance are taxable and will be subject to withholding tax. A withholding rate of 10% will be applied to the majority of the claims, however, there are some larger distributions that will be subject to a higher withholding rate.

  It is possible you may experience delays as a result of a lack of complete information relating to the retiree group. Please be patient and understand that such errors will be corrected once the proper information is obtained.

• November 4, 2011

  If you have not yet received an Information Statement package, please do not panic.  There are a number of reasons you may have not yet received your package, including:

  • Your package is still en route to you by mail. Packages were mailed between November 2 and 7, and delivery time will vary;
  • Your package may have been mailed to an incorrect address; or
  • An Information Statement has not been prepared for you.

  Steps to be Taken:

  1. Be patient.  Your package may be in the mail.  Please wait until November 14, 2011 to contact the Monitor about the status of your package.
  2. If you have not received a package by November 14, please contact the Monitor to inquire whether an Information Statement package was prepared for you.
  3. If you have recently moved and have not reported your change of address, please complete a Change of Address Form, which is available on the KM or Monitor websites.  If you do not have access to the internet, please contact KM or the Monitor by telephone to request that a  Change of Address Form be mailed to you.
  4. Please do not panic if you have not received an Information Statement before the Nov. 10 webinar or the live information session that you are planning to attend.  You can still attend these sessions without an Information Statement.  Once you eventually receive your package you will be able to:
  • Access the webinar/information session presentation online at https://kmlaw.ca/.
  • Listen to the webinar online at https://kmlaw.ca/.
  • Pose questions to KM, the Monitor or the counsel for the CAW-Canada by telephone or by email.
• October 26, 2011

  A letter regarding important information about upcoming webinars and meetings for Disabled Employees of Nortel Networks Corp. et al. was recently mailed out. To view a copy of this letter, please click here.

• October 18, 2011

  On October 6, 2011 the Ontario Superior Court of Justice approved a Compensation Claims Process through which the claims of all employees and former employees of Nortel will be valued. In accordance with the Compensation Claims Process, individual Information Statement Packages will be mailed to former employees and disabled employees of Nortel within 21 business days of October 6, 2011. You will be provided with an opportunity to review your Information Statement Package and to make any corrections to the personal information data that was used to value your claim. If you feel that you have a claim that is not covered in the Information Statement Package that you receive, you will also be provided with an opportunity to file a proof of claim. Please note that the deadline to make any correction to the Information Statement and to file a proof of claim form is at 4:00pm Eastern Standard Time on January 6, 2012.

  A series of webinars and live information sessions have been scheduled in order to provide more information about the Compensation Claims Process. The meetings will consist of a presentation, after which the audience may ask questions. Only Nortel former employees, disabled and/or their spouses may attend. These are not public meetings. To view a copy of the information sessions schedule, which will take place in various cities across the country, please click here.

  A series of webinars has also been scheduled for November 10 and 11. Please take note of the following times and dates [Links no longer available]:

  Webinar for all Former Employees of Nortel November 10, 2011 10:00am EST To access this webinar: http://www.bellwebcasting.ca/audience/index.asp?eventid=14184206 Webinar for all Nortel LTD Beneficiaries November 10, 2011 2:00pm EST To access this webinar: http://www.bellwebcasting.ca/audience/index.asp?eventid=60511415  Webinar for all Former Employees of Nortel (French) November 11, 2011 2:00pm EST To access this webinar: http://www.bellwebcasting.ca/audience/index.asp?eventid=71340578

   

• October 6, 2011

  On October 6, 2011 the Ontario Superior Court of Justice approved the Compensation Claims Methodology Order and the Compensation Claims Procedure Order (the “Compensation Claims Process”) with written reasons to follow. To view a copy of the two related Orders please click here.

  The Compensation Claims Process is a process through which to value the claims of all former employees, including pensioners and surviving spouses, and disabled employees of Nortel. There will be many developments in the coming months. During this period, Representative Counsel, the court-appointed Representatives and their advisors will be holding a number of webinars and live information sessions for Nortel’s pensioners, former employees and disabled employees. Please check the KM website frequently in order to keep informed about progress and important dates.

• September 30, 2011

  To view the archived versions of the webcasts held on September 30, 2011 please click on the following links [Links no longer available]:

  Webinar for all Former Employees of Nortel (English) September 30, 2011 To access this webinar: http://www.bellwebcasting.ca/audience/index.asp?eventid=94520204 Webinar for all LTD Beneficiaries September 30, 2011 To access this webinar: http://bellwebcasting.ca/audience/index.asp?eventid=40459841 Webinar for all Former Employees of Nortel (French) September 30, 2011 To access this webinar: http://bellwebcasting.ca/audience/index.asp?eventid=17817324

• September 23, 2011

  To view the archived version of the September 22nd webcast, please click on the following link [Link no longer available]:

  http://bellwebcasting.ca/audience/index.asp?eventid=93883477

• September 21, 2011

  A letter regarding important information about upcoming webinars for Disabled Employees of Nortel Networks Corp. et al. was recently mailed out.

• September 20, 2011

  A motion has been scheduled for October 6, 2011 beginning at 10:00 a.m. at 361 University Ave.  This motion is for the approval of a Compensation Claims Process that is being proposed by the Applicants.

  A series of webinars will be hosted by Representative Counsel to provide important information about the forthcoming Compensation Claims Process.  During these webinars, you will have the opportunity to learn more about this special claims process that is being proposed for the compensation-related claims that have been lost from Nortel.  Please take note of the following times and dates [Links no longer available]:

  Webinar for all Former Employees of Nortel September 22, 2011 3:00-5:00pm EST To access this webinar: http://bellwebcasting.ca/audience/index.asp?eventid=93883477 Webinar for all Former Employees of Nortel (English) September 30, 2011 10:30am-12:00pm EST To access this webinar: http://www.bellwebcasting.ca/audience/index.asp?eventid=94520204 Webinar for all Nortel LTD Beneficiaries September 30, 2011 12:30-1:30pm EST To access this webinar: http://bellwebcasting.ca/audience/index.asp?eventid=40459841 Webinar for all Former Employees of Nortel (French) September 30, 2011 2:00-4:00pm EST To access this webinar: http://bellwebcasting.ca/audience/index.asp?eventid=17817324

   

• August 25, 2011

  The Court on August 23, 2011 approved an interim distribution from Nortel’s HWT on account of LTD Life and LTD Optional Life Benefits to LTD Beneficiaries. The amount of the Fourth Interim Distribution from the HWT will be 25% of LTD Life and LTD Optional Life Benefit calculated in accordance with the Approved HWT Allocation Methodology. It is expected that these interim distributions will be made by the end of September 2011.

  Please click here to view a copy of the Court’s endorsement and Order. More information about the Fourth HWT Interim Distribution can be found in the Monitor’s Seventy-Third Report to the Court, which is located on the Monitor’s website at www.ey.com/nortel.

• August 5, 2011

  Important Announcement from Morneau – Notarized Declarations

  Morneau Shepell has announced they will be modifying the requirement for notarized declarations for members of Nortel’s pension plans who are reporting an error in the reported province-of-employment information contained in the letters from Morneau dated July 11, 2011.

  For those members who are reporting non-Ontario service where Morneau had indicated Ontario service (and therefore the change they are reporting will, in most cases, decrease the pension they are entitled to), Morneau will not require a notarized declaration.

  For those people who are reporting Ontario service where Morneau had indicated they had non-Ontario service (and therefore the change they are reporting will, in most cases, increase the pension they are entitled to), Morneau will still require the notarized declaration. A dated signature by the retiree will be sufficient.

  Please note that if you have specific reasons why it is impractical for you to swear a notarized declaration, you should contact Morneau administrators by telephone.

  As indicated in the letters from Morneau, members who have documentary evidence indicating province of employment do not need a notarized declaration.

• July 27, 2011

  To view the FAQ related to the content based on the webinar on Pension Plan Cutbacks held on July 22, 2011, please click here.

• July 27, 2011

  The CRA has released its Advance Income Tax Ruling (‘CRA Ruling’), which applies to distributions that are made from the Nortel HWT. To view a copy of this document please click here.

  The CRA has made four separate rulings, which can be located on page 7 of the CRA Ruling.  Each ruling applies to a distinct group of benefits, and therefore not all rulings will apply to you.  The CRA’s four rulings are summarized as:

  A.  LTD Income Benefit Payments – (Not Taxable): Distributions that are made from the Nortel HWT to Disabled Employees in respect of LTD Income Benefit payments are not taxable.  Any distribution paid from the Nortel HWT in respect of LTD Income Benefits will not be included in a Disabled Employee’s income for purpose of the Income Tax Act (Canada).  This means that there will be no amounts related to federal income tax withheld from HWT distributions that are related to LTD Income Benefits.

  B.  Retiree and LTD Life Insurance – (Taxable):  Distributions that are made from the Nortel HWT to Retirees and Disabled Employees in respect of a life Insurance benefit is taxable.   Any distribution paid from the Nortel HWT in respect of life insurance benefits will be included in your income for the purpose of the Income Tax Act (Canada) in the year of receipt.  This means that any HWT distribution you receive that is related to Retiree or LTD life insurance will be subject to federal income tax withholding.

  C.   Survivor Income and Survivor Transition Benefits – (Taxable):  Distributions that are made from the Nortel HWT to individuals who have an entitlement to a Survivor Income Benefit or Survivor Transition Benefit are taxable. Any distribution paid from the Nortel HWT in respect of Survivor Income or Survivor Transition Benefits will be included in the recipient’s income for the purpose of the Income Tax Act (Canada) in the year of receipt.  This means that any HWT distribution you receive that is related to a Survivor Income or Survivor Transition Benefits will be subject to federal income tax withholding.

  D.  Non-Residents of Canada: No Disabled Employee, LTD Life Beneficiary, Retired Employee or Entitled Survivor who is a non-resident of Canada will have disposed of a taxable Canadian property for income tax purposes.

  Please take note that the CRA Ruling applies only to distributions that are made from the Nortel HWT.  This CRA Ruling does not apply to any distribution that will be made in the future from the Nortel estate.  Subsequent Advance Income Tax Rulings Requests will be submitted with the CRA, if necessary, for payments that will be made from the Nortel estate in the future.

  If you are a Quebec resident, please note that a request for an advance income tax ruling has been submitted with your provincial taxing authority, Revenu Quebec, and that this ruling will also affect you.  Revenu Quebec has not yet delivered its ruling and we do not know when this will occur. More information will be posted on this website once it becomes available.

  You may contact Representative Counsel if you have questions after your review of the CRA Ruling.

• July 25, 2011

  To view the archived version of the July 22nd webcast, please click on the following link [Link no longer available]:

  http://www.bellwebcasting.ca/audience/index.asp?eventid=74164979

• July 22, 2011

  Please click here for a PDF version of the July 22nd webcast slides.

• July 19, 2011

  To view a copy of the letter that was mailed to all disabled employees on July 19, 2011 please click here.

• July 11, 2011

  Members of Nortel’s two defined benefit pension plans, the Nortel Networks Negotiated Pension Plan and the NNL Managerial and Non-Negotiated Pension Plan, should expect to receive a letter from Morneau Shepell, the current Administrator of the Plans, in the next few weeks. This letter will advise Plan members of important issues relating to your pensions, including the upcoming pension reductions that many Plan members will experience effective August 25, 2011.

  For more information please visit the Morneau Shepell website at

  https://www.pensionwindups.morneaushepell.com/_private/select_plan.asp?DURL=/en/plan_info/plan_info.asp.

  Koskie Minsky will be hosting a webcast on July 22, 2011 from 1:00 – 3:00 p.m. for all members of Nortel’s pension plans. Representatives from Morneau Shepell will be in attendance at the webcast to deliver a presentation about these important issues and to respond to your questions. Please see below for information on how to register for the July 22 webcast. 

• July 11, 2011

  Upcoming Webinar:

  Koskie Minsky will be hosting a webcast on July 22, 2011 from 1:00 – 3:00 p.m. for all members of Nortel’s pension plans. Representatives from Morneau Shepell, the current Administrator of Nortel’s pension plans, will be in attendance at the webinar to deliver a presentation about important issues related to Nortel’s pension plans and to respond to questions.

  Questions on this topic may be provided to Koskie Minsky in advance either by calling our toll free hotline at 1.866.777.6344 or sending an e-mail to nortel@kmlaw.ca.

  Participants can register for the webcast through the following link http://www.bellwebcasting.ca/audience/index.asp?eventid=74164979

  A dial-in audio-only option will be available to individuals who do not have internet access. You can register for this service by leaving a voice message on our hotline with your name and telephone number.

• July 8, 2011

  To view the archived version of the Nortel Former Employee Information Session on Ontario’s Trillium Drug Program held on July 5th, please register by clicking here.

• June 29, 2011

  The Canadian and US Courts have issued an interim order requiring parties to participate in a mandatory mediation with Ontario’s Chief Justice Winkler presiding. To view copies of the Canadian Court’s endorsements dated June 17, 2011 and June 29, 2011, please click here.

• June 24, 2011

  Koskie Minsky will be holding an information session by webcast on July 5, 2011 at 10:30 a.m. to provide all former Nortel employees under age 65 from Ontario who have significant drug costs with information about the Ontario’s Trillium Drug Program (TDP). The TDP is intended for Ontario residents who have a valid Ontario Health Card and who have high prescription drug costs in relation to their net household income. A spokesperson from the Ministry of Health will be providing information about the TDP and will be available for questions.

  Questions on this topic may be provided to Koskie Minsky in advance either by calling our toll free hotline at 1.866.777.6344 or sending an e-mail to nortel@kmlaw.ca. We strongly recommend you review the fact sheet, guidebook and application form before the webcast, which can be accessed at the following website: www.health.gov.on.ca/english/public/pub/drugs/trillium.html

  Participants can register for the webcast through the following link http://www.bellwebcasting.ca/audience/index.asp?eventid=47571962

  A dial-in audio-only option will be available to individuals who do not have internet access. You can register for this service by leaving a voice message on our hotline with your name and telephone number.

• June 21, 2011

  The Court has approved the Monitor’s request that a third interim distribution be made to all Income Beneficiaries of Nortel’s health and welfare trust. Please click here to view a copy of the Third HWT Interim Distribution Order and a copy of the Court’s Endorsement.  

  The Third Interim Distribution will provide some financial relief to Income Beneficiaries before the final distribution of Nortel’s HWT corpus. The Monitor’s Report on the original HWT motion indicated that the Income Beneficiaries would be paid approximately 33.8% of the Actuarial Value of their Income Benefits calculated in accordance with the Approved HWT Allocation Methodology. Prior to this third distribution, all Income Beneficiaries received up to 5 months salary or 10% of their Income Benefits (whichever was less) from the January Interim Distribution and the May/June Interim distribution combined. The Third Interim Distribution, together with the previous distributions, will provide a total of 25% of the Actuarial value of the Income Benefits. The balance of the Income Beneficiaries’ entitlement, being approximately 8.8%, will be paid in a further distribution from the HWT. The timing for this final payment is unknown. Like the previous two distributions, the Third Interim Distribution will be credited against Income Beneficiaries’ future distribution from Nortel’s HWT, and all distributions from the HWT will be deducted from claims against the Nortel estate.

  The payments are expected to be made at the end of July.

• June 9, 2011

  The Supreme Court of Canada today denied leave to appeal from a decision of the Ontario Court of Appeal dated January 7, 2011 regarding the allocation of the assets of Nortel’s health and welfare trust. Leave had been sought by a small group of Nortel’s disabled employees who opposed the decision of the CCAA judge of November 9, 2010 approving an allocation which gave all beneficiaries approximately 34% of their entitlements in the Trust. Please click here to view a copy of the Supreme Court’s Judgment. [links no longer active]

  The Monitor’s website indicates that a  motion will be brought to the Ontario Superior Court of Justice on or before June 30, 2011 for approval of a further interim distribution to bring all Income Beneficiaries to 25% of their Income Benefits calculated in accordance with the Approved HWT Allocation Methodology. The Monitor’s website further indicates that a motion for approval of an interim distribution in respect of life insurance benefits, as well as an application for approval of the final distribution of the HWT, will be brought as soon as practicable.  For more information, please visit the Monitor’s website at www.ey.com/ca/nortel.

  Please click here to view a copy of a media release to view a copy of a media release issued today by Susan Kennedy, the court-appointed Representative for Nortel Disabled Employees. [links no longer available]

• May 3, 2011

  The Court has approved the Monitor’s request that a second interim distribution be made to Income Beneficiaries of Nortel’s HWT. Please click here to view a copy of the May/June Interim Distribution Order.

  The May/June Interim Distribution will provide some financial relief to Income Beneficiaries before the final distribution of Nortel’s HWT corpus. For the majority of Income Beneficiaries, the May/June Interim Distribution will result in a lump sum payment representing 2 months of payable income benefits. No individual will receive an amount that exceeds two months of payable benefits, but some individuals may receive less, depending on their individual circumstances. The May/June Interim Distribution will be the amount that, when taken with the January Interim Distribution, will be 10% of the individual’s Income Benefits calculated in accordance with the Approved HWT Allocation Methodology. Like the January Interim Distribution, the May/June Interim Distribution will be credited against Income Beneficiaries’ future distribution from Nortel’s HWT.

  The payments are expected to be made at the end of May.

• April 25, 2011

  Pension Unlocking Option for Disabled Employees Suffering Financial Hardship

  Disabled Employees who are eligible to retire and who wish to receive a monthly pension should contact Morneau to commence the retirement process. Ontario’s Superintendent of Financial Services has also provided its approval to the Administrator to permit certain lump sum transfers to Nortel’s Disabled Employees. The Superintendent has approved interim transfers of up to 50% of the estimated commuted value that you are expected to ultimately receive from the Plan (that is, 50% of your pension value calculated at the estimated funded ratio; so, if the funded ratio is 60%, you could transfer up to 30% of your pension value) to a locked-in retirement account for Nortel’s Disabled Employees, regardless of whether or not you are currently eligible to receive a monthly pension. The intent of this extraordinary permission is to permit those Disabled Employees who are suffering financial hardship to access a portion of their pension funds through an application to their provincial pension regulator to unlock their pension monies. Click here to access the Ontario Financial Hardship Unlocking form. This option will be available to Disabled Employees who have accrued benefits from employment in Ontario, Alberta and Nova Scotia. Disabled Employees who wish to take advantage of this option should contact Morneau to request an election form. Note that once you have chosen to take your partial CV transfer, you will not be permitted to apply to start your pension from the Nortel plan. The remainder of your pension entitlement (the total of which will be reduced to the wind-up funded ratio) will be paid out pursuant to the final wind-up of the Plan.

   

• April 6, 2011

  IMPORTANT: Incorrect Information Being Circulated re Nortel Severance Claims

  There is incorrect information being circulated relating to the claims against the Canadian estate of Nortel. All employment- based claims will be dealt with through a special “Compensation Claims Process”. You will be notified about that process once it has been finalized. Your claims will be calculated for you as part of that process. You will be provided with a claims package which identifies the nature and amount of the claims that will be made on your behalf, and a summary of the data from Nortel’s records upon which your claims have been calculated. Before the claims process can be implemented, court approval will be required. Koskie Minsky and the court-appointed representatives (Donald Sproule, Michael Campbell, David Archibald and Susan Kennedy) will be conducting information sessions and/or webinars to explain the process and the basis for calculating your claims.

  Please disregard any information you receive relating to the Compensation Claims Process unless it arrives from Koskie Minsky, Ernst & Young or the court-appointed Representatives. Please note that the Compensation Claims Process in Canada has not yet been finalized. It is not necessary to take any action at this time and it will not be necessary (except in very few special circumstances) to fill out a claim form. Any documentation that is delivered to Ernst & Young Inc. will not be accepted at this time.

  Please contact the NRPC through their website at www.nortelpensioners.ca, or Koskie Minsky at 1.866.777.6344 or by email at nortel@kmlaw.ca if you have any questions relating to the Compensation Claims Process. However, at this time, none of Koskie Minsky, the NRPC or the Monitor are able to advise you about the amount of your severance claim because it has not yet been calculated.

   

• March 8, 2011

  A Disabled Employees Progress Report was mailed out on March 8, 2011.

  For a copy of the document prepared by the CNELTD Steering Committee entitled “Provincial Government Assistance for People with Disabilities and/or High Drug Costs” please click here.

• February 16, 2011

  Morneau Shepell Ltd. (“Morneau”), the Administrator of Nortel’s pension plans, recently has made several announcements related to Nortel’s pension plans. To access full information provided by Morneau about these announcements, please visit the Morneau website at http://www.pensionwindups.morneausobeco.com

  Superintendent’s Approval for Commencement of New Pensions

  Over the past several months, members of Nortel’s pension plans who recently became eligible for retirement have been experiencing delays in the commencement of new pensions. Morneau has now received consent from Ontario’s Superintendent of Financial Services to start new pension payments at a level of 50% of full entitlement. For Plan members with Ontario service, new pensions will take into account any amounts payable under Ontario’s Pension Benefit Guarantee Fund (PBGF). From what we understand, this means that for individuals who worked their careers in Ontario, new pensions that are commenced at a reduced rate of 50% will be topped up by the PBGF to ensure that the first $1,000 is guaranteed. Therefore, a member with Ontario service who is entitled to a pension of $1,000 per month under the Plan rules will start their pension at a level of $1,000 per month (half of which is paid by the pension fund and half by the PBGF). A member with Ontario service who is entitled to a pension of $2,000 per month will start their pension at a rate of $1,500 (the first $1,000 of which is guaranteed by the PBGF and the second $1,000 to be paid at a reduced rate of 50%). Full PBGF protection will apply only to Plan members who worked their entire career in Ontario; partial PBGF coverage will apply proportionately to that portion of pension service which was accrued in Ontario; for those who were employed outside of Ontario, the PBGF is not applicable.

  All amounts are subject to future adjustment, including in accordance with the final wind-up ratio for the Plans.

  Quebec pension legislation does not permit the commencement of new pension payments to those who are not yet in receipt of a pension. The Administrator is permitted to provide temporary advance payments to Quebec members which will be deducted, with interest, from the commuted value transfer that will ultimately be paid to them. Although Quebec members cannot commence a monthly pension from the Nortel Plans now or in the future, Quebec Plan members will have the opportunity at some point in the future to transfer funds into an investment vehicle that will allow for the establishment of a monthly income stream. When this stage is reached, those who are affected will be required to make an individual investment decision based on their individual circumstances.

  Plan members who have already requested a retirement quote from Morneau should receive a Retirement Election Option Form in the near future. Those who have not yet requested a retirement estimate or commenced the retirement process, but who are eligible to retire and who wish to do so, should contact Morneau immediately at 1.877.392.2073 or through their website at www.morneaushepell.com.

  All Plan members will receive a general communication from Morneau in the near future, which will provide more information about these and other issues related to Nortel’s registered pension plans. Please direct all pension-specific inquiries to Morneau Shepell at 1.877.392.2073.

  Superintendent’s Approval of Partial Commutations for Nortel’s Disabled Employees

  Disabled Employees who are eligible to retire and who wish to receive a monthly pension should contact Morneau to commence the retirement process. Ontario’s Superintendent of Financial Services has also provided its approval to the Administrator to permit certain lump sum transfers to Nortel’s Disabled Employees. The Superintendent has approved interim transfers of up to 50% of the estimated commuted value that you are expected to ultimately receive from the Plan (that is, 50% of your pension value calculated at the estimated funded ratio; so, if the funded ratio is 60%, you could transfer up to 30% of your pension value) to a locked-in retirement account for Nortel’s Disabled Employees, regardless of whether or not you are currently eligible to receive a monthly pension. The intent of this extraordinary permission is to permit those Disabled Employees who are suffering financial hardship to access a portion of their pension funds through an application to their provincial pension regulator to unlock their pension monies. Click here to access the Ontario Financial Hardship Unlocking form. This option will be available only to Disabled Employees who have accrued benefits from employment in Ontario, Alberta and Nova Scotia. Those three provinces are the only ones where unlocking pension funds is permitted by the applicable pension legislation. Disabled Employees who wish to take advantage of this option should contact Morneau to request an election form. Note that once you have chosen to take your partial CV transfer, you will not be permitted to apply to start your pension from the Nortel plan. The remainder of your pension entitlement (the total of which will be reduced to the wind-up funded ratio) will be paid out pursuant to the final wind-up of the Plan.

  Please watch for the general communication that all Plan members will receive from Morneau in the near future, as it will provide you with more information about retirement, the partial commutation option for Disabled Employees and other issues related to Nortel’s registered pension plans. Please direct all pension-specific inquiries to Morneau Shepell at 1.877.392.2073.

• January 28, 2011

  Upcoming Sun Life Deadlines

  The health, dental and life insurance coverage that Nortel provided in the past through Sun Life ended effective December 31, 2010. Only claims incurred on or before December 31, 2010 are covered. Please be sure to submit all health and dental claims to Sun Life by February 28, 2011, as claims will not be accepted for processing after that date.

  Any disabled employees who have been advised of a life insurance conversion option (i.e. conversion from the group policy to an individual policy) with Sun Life must exercise this right on or before January 31, 2011.

• January 27, 2011

  Supreme Court of Canada Denies UK Pension Regulator’s Application for Leave to Appeal

  The Supreme Court of Canada has dismissed the UK Pension Regulator’s application for leave to appeal. The Ontario Court of Appeal had previously upheld a decision of the Ontario Superior Court of Justice, providing that the results of certain foreign proceedings were unenforceable in Canada. The SCC’s decision means that results reached in UK proceedings involving Nortel’s UK pension plan will not be enforceable in the Canadian court system. Please follow the following link for more information: [link no longer active]

  scc.lexum.umontreal.ca/en/news_release/2011/11-01-27.3a/11-01-27.3a.html

  Please note that the SCC’s decision does not mean that UK parties are prohibited from asserting a pension claim in Canada. Rather, parties in the UK and other European countries will have an opportunity to file a claim in Canada through the EMEA Claims Procedure Order, which was granted by the Ontario Superior Court of Justice on January 14, 2011. Such claims must be filed with the Monitor by March 18, 2011. Please note that the EMEA Claims Procedure Order does not affect pensioners, former employees or disabled employees, as those claims will be subject to a separate Compensation Claims Procedure, the details of which currently remain subject to discussion.

• January 14, 2011

  NRPC WEBCAST FOR PENSIONERS, SURVIVORS AND FORMER EMPLOYEES OF NORTEL – JANUARY 28th, 2011

  The NRPC is hosting a webcast on January 28th, 2011 from 1:00 – 3:00 Eastern to provide an update for those unable to attend one of the five NRPC town hall meetings that are being held during January. The webcast will cover progress on political actions, replacement insurance and topics for terminated employees. Legal actions will not be covered during this NRPC webcast and Koskie Minsky will not be represented on the call. Further Koskie Minsky webcasts will be scheduled in the future so please visit our website regularly for announcements about upcoming webcasts.

  Participants who wish to register for the NRPC’s January 28 webcast can do so through the following link:

  http://www.bellwebcasting.ca/audience/index.asp?eventid=28512209

  Anyone without Internet access can call dial-in (listen only) by first registering through Koskie Minsky. Please leave a voicemail with your name and telephone number on the Koskie Minsky hotline at:

  1-866-777-6344 between January 17th – 26th.

  A representative will contact you to provide the dial-in number for the webcast.

• December 22, 2010

  A Disabled Employee Progress Report was mailed out on December 21, 2010.

• December 20, 2010

  In part as a result of the application for leave to appeal the Court’s recent HWT decision, there can be no full and final distribution of the funds in Nortel’s Health and Welfare Trust before the end of 2010, as was originally hoped. In order to provide interim financial relief for those individuals who are about to experience a cessation of monthly income benefits, the Disabled Employees’ Representative, the Former Employees’ Representatives and the CAW asked the Monitor to bring a motion for an interim distribution to HWT income beneficiaries who are currently in receipt of income benefits.

  The Monitor’s motion for an interim distribution was approved by the Court on December 15, 2010. To view a copy of the Order, please click here. To view a copy of the Endorsement, please click here. A lump sum distribution of 10% of the present value of eligible beneficiaries’ total income benefit claim to a maximum of 3 months of benefits will be made to income beneficiaries of Nortel’s Health and Welfare Trust (HWT). The Monitor is of the opinion that this level of interim distribution is prudent, reasonable and will not prejudice other HWT beneficiaries or benefits. It is expected that income beneficiaries will receive the interim cash distribution from funds held in the HWT on or around January 31, 2011. The interim distribution will be treated as an advance on income beneficiaries’ ultimate claim to be paid from the funds held in the HWT. Please contact the Monitor if you have any questions.

   

• December 10, 2010

  All Manulife packages were mailed on or before December 1, 2010. If you have not received a package yet, please contact Manulife directly at 1-800-370-7057 to request that they send you a package. This number is now active and was established specifically for former Nortel employees who wish to contact Manulife to get additional information or to apply for coverage. The number can be used to call Manulife from anywhere in Canada and the continental US.

• December 9, 2010

  1. Upcoming Changes to Existing Sun Life Health, Dental and Life Insurance Coverage:

  Many Nortel retirees, former employees and disabled employees currently receive health, dental and life insurance coverage through Sun Life. It is important to note that your current coverage with Sun Life ends effective December 31, 2010. All claims under the current coverage must be incurred by December 31, 2010 and must be submitted to Sun Life prior to February 28, 2011. Please be sure to submit all claims to Sun Life by the February 28, 2011 deadline, as no claims will be accepted for processing after that date.

  2. December 2 Mailing – Alternative Manulife Health, Dental and Life Insurance Coverage:

  The NRPC, in conjunction with the CAW and Nortel’s disabled employees, has worked with advisors to establish alternative health, dental and life insurance coverage that will be available after your current coverage ends. It is voluntary and you must pay for it. After an analysis of the various options and costs, the NRPC has endorsed the coverage that Manulife Financial has offered to make available to all former Nortel employees without evidence of insurability as of January 1, 2011. Packages outlining the details of the Manulife Financial coverage and enrolment information were mailed to all retirees, former employees and disabled employees of Nortel during the week of December 2. To discuss any questions you may have about the Manulife coverage, please contact Manulife directly after December 13 on the toll-free line that has been established for Nortel former employees. Please note that the toll-free hotline, 1.800.370.7057, is not operational until December 13, 2010.

  The Manulife coverage is an optional program and if you choose to participate, you will be required to cover the premiums and other associated costs. If you decide to purchase coverage from Manulife, all of your transactions will be directly with Manulife. To determine whether the Manulife coverage is the best option for you, you may wish to discuss your needs and preferences with family members or other individuals that you trust. You may also wish to investigate other options such as provincial drug programs for which you may be eligible. The NRPC has prepared a newsletter outlining some of the provincial drug programs that may be applicable to you. To view a copy of that document, please click here.

  3. LTD Updates:

  In accordance with the Settlement Agreement, Nortel’s disabled employees will be terminated from employment with Nortel, effective December 31, 2010. There will be a number of important upcoming changes. These changes are outlined in a Termination Package that was recently mailed to Nortel’s disabled employees. To view a copy of the Termination Package, please click here. In addition to outlining the upcoming changes to your health, dental and life insurance coverage, the Termination Package also outlines issues pertaining to Nortel’s defined contribution and defined benefit pension plans. Please be sure to review your Termination Package. You may contact the Monitor or your Representative Counsel with questions or concerns.

  If you are a member of one of Nortel’s pension plans and have questions that are specific to your pension, please contact Morneau Sobeau:

  Managerial Plan – 1-877-392-2074

  Non-Negotiated Plan – 1-877-392-2073

  Email – nortelwindup@morneausobeco.com

  Disabled employees who are members of Nortel’s pension plans under the defined benefit (“DB”) provisions received a letter from Nortel in mid-September, which outlined changes to your pension contributions. The letter informed eligible individuals about a one-time “top-up” deposit that will be made to compensate you for the value of the DB benefit that you would have accrued under the DB plan during the October 1 – December 31 period but couldn’t because the Plan will be wound up effective September 30, 2010. We expect the one-time “top-up” deposit to take place in late December 2010. For eligible Canadian residents, the deposit will be made directly into your existing investment account with Sun Life. For eligible individuals who reside outside of Canada, the one-time deposit will be made into your after-tax savings vehicle (ATSV) account.

• November 23, 2010

  All individuals in receipt of long-term disability payments, survivor income benefits and survivor transition benefits have or will soon receive a statement in the mail which sets out their personal information for verification. This personal information was used to calculate the preliminary estimates in the Beneficiary Estimated Allocation Statement. The Data Verification Statements for disabled employees contain a column entitled ‘net monthly LTD-income payment’. Please take note that the amount set out in that column is net of Canada Pension Plan (CPP) disability payments, Workplace Safety & Insurance Board (WSIB) payments and other income benefits you receive that offset your monthly LTD-income payment. However, the amount referred to in that column is not net of tax or other statutory deductions that regularly reduce your monthly LTD-income payments. Please note that for this reason, the amount in the ‘net monthly LTD-income payment’ column will not be precisely the same as the dollar amount of the net monthly payment you actually receive. You may contact your Representative Counsel or the Monitor with questions or concerns.

• November 10, 2010

  Please click here to view the most recent Disabled Employees Progress Report that will be mailed out within the next week. Pour consulter ce document en français, cliquez ici

  To view the Update for Disabled Employees concerning the recent release of the Nortel Health and Welfare decision, which was sent to Nortel disabled employees only, please click here. Pour consulter ce document français, cliquez ici. Please note that the Beneficiary Estimated Allocation Statement (BEAS) referred to in this update applies only to disabled employees and to individuals in receipt of survivor income and survivor transition benefits. If you are a pensioner, a surviving spouse of a pensioner who receives a surviving spouse pension, a deferred pensioner or a terminated employee, you should not have received a BEAS.

• November 9, 2010

  The Ontario Superior Court of Justice released its decision today granting the Monitor’s motion with respect to the proposed methodology for the allocation of the corpus of Nortel’s Health and Welfare Trust. To view a copy of the decision, please click here.

• November 8, 2010

  In late August 2010, all recipients of long term disability benefits (“LTD-income”), survivor income benefits (“SIB”) or survivor transition benefits (“STB”) received a Beneficiary Estimated Allocation Statement (“BEAS”) from the Monitor. The statement included a preliminary estimate of your LTD-Income, basic and/or optional life benefit, STB or SIB benefit values as of December 31, 2010 based on data as at June 30, 2010. All individuals who received a BEAS can expect to receive another letter from the Monitor in November, which will ask you to confirm the personal information that was used to calculate the preliminary estimate of your LTD-Income, STB or SIB benefit. If the information contained on the form is correct, you are not required to take any action. If there are inaccuracies in the data contained on the form, then you must make the applicable corrections and return the form to the Monitor. You may direct any questions to the Monitor at 1.866.942.7177 or nortel.monitor@ca.ey.com, or to your Representative counsel at 1.866.777.6344 or nortel@kmlaw.ca.

• November 1, 2010

  Termination Fund: Upcoming Payments

  The Settlement Agreement that was approved by the Court on March 31, 2010 established a Termination Fund for the benefit of certain Nortel terminated employees who were still owed termination or severance payments. All terminated employees who are eligible for this payment received a letter in September indicating their eligibility and outlining the method of payment.

  Please note that cash payments will begin to be made effective October 29, 2010. Some individuals who commenced employment with Nortel prior to 1996 were eligible for a retiring allowance and therefore were provided the option for their Termination Fund payment to be made directly into an RRSP account. Please note that transfers into RRSP accounts are still being processed. Individuals who chose this option should not expect their payment for several more weeks.

• September 23, 2010

  The Superintendent of Financial Services announced today that it has appointed Morneau Sobeco Limited Partnership (Morneau Sobeco) as the new plan administrator, effective October 1, 2010, for Nortel’s two defined benefit pension plans:

  the Nortel Networks Negotiated Pension Plan (registration number 587766), and the Nortel Networks Limited Managerial and Non-Negotiated Pension Plan (registration number 342048) (the “Pension Plans”). In accordance with the March 31 Court-approved Settlement Agreement, Nortel will cease to make contributions to the Pension Plans and will no longer act as plan administrator effective September 30, 2010. Going forward, Morneau Sobeco will be the administrator of the Nortel pension plans and ultimately will be responsible for the wind-up of the Pension Plans. Morneau Sobeco was selected as the wind-up administrator through a tendering process. Given the firm’s level of experience in pension plan wind-ups, we have confidence in their competence and in their ability to deal with large scale pension plan wind-ups such as Nortel’s. Effective October 1, 2010, questions should be directed to the new plan administrator, Morneau Sobeco Limited Partnership at www.morneausobeco.com. To review more information about the Superintendent’s recent appointment, please visit the Financial Services Commission of Ontario website at http://www.fsco.gov.on.ca/english/pensions/nortel.asp. While there will be changes to the administration of the Pension Plans effective October 1, 2010, there should be no immediate change to your pension. You should receive your normal pension cheque in October. Once Morneau Sobeco’s appointment takes effect on October 1, a review of the Pension Plans will commence and a wind-up report will be prepared. You may experience a reduction to your pension in the future, likely after the wind-up report is completed and approved, as necessary. We will post more information on our website as it becomes available.

  Effective October 1, 2010 inquiries regarding Nortel’s pension plans should be directed to Morneau Sobeco at:

  www.pensionwindups.morneausobeco.com

  nortelwindup@morneausobeco.com

  Negotiated Plan (phone): 1-877-392-2073

  Managerial Plan (phone): 1-877-392-2074

• September 22, 2010

  On October 1, 2010, the NNL Non-Negotiated and Negotiated Pension Plans will transition to a new administrator appointed by the Superintendent of Financial Services for Ontario.

  As a result of the change in administration, all active employees who are members of the Pension Plans, including disabled employees who are on long-term disability, will experience changes that will take effect on October 1. Although you will cease to earn benefits under Nortel’s existing Defined Benefit and Defined Contribution plans on October 1, Nortel has established a mechanism to make payment of DC contributions and to provide a “top-up” deposit for grandfathered members of the Defined Benefit plan for the period between October 1 through December 31, 2010 while you remain an active employee of Nortel in compensation for the value of the defined benefit that you would have earned.

  Canadian LTD participants in the Defined Contribution and the Defined Benefit pension plans recently received correspondence outlining these changes and providing information about how future payments and investments will be made. Please read the information in this correspondence carefully and note that you are required to take positive action only if you do not already have an existing Employee Investment/Savings Plan account with Sun Life. Many disabled employees will already have an existing account with Sun Life however if you do not, please create one by completing the form you have been provided and returning it to Sun Life by 4:00pm on September 27.

  The correspondence you received provides you with several investment options, and which option you choose, if any, is a personal decision. If you have any questions about which investment option you should choose, please speak to your personal investment or financial advisor. If you do not choose any option, you will be placed into the default option (as outlined on the form).

  If you have questions about whether you already have an existing account with Sun Life, please contact Sun Life at 1.866.733.8612. You may contact KM at 1.866.777.6344, or if you are a member of the CAW, your counsel at 1.800.268.5763 with other questions.

  If you believe that you should have received this correspondence but have not, please contact us immediately.

• September 14, 2010

  Please visit the HWT Document Package tab to the right of this page for new information that has been posted concerning recipients of LTD, SIB and STB income

• September 9, 2010

  Sack Goldblatt Mitchell (SGM), independent counsel for the disabled employees, advising them for the purposes of the allocation of the assets in Nortel’s Health and Welfare Trust, will be hosting a webcast entitled “Nortel Disabled Employees Webcast – Health and Welfare Trust Distribution” on September 8, 2010 at 12:00 p.m.

• September 1, 2010

  Koskie Minsky held a webcast today from 3:00 to 5:00 p.m. to provide all pensioners and former employees with an update on Nortel’s CCAA proceedings. To view the archived webcast please click here.

  Please click here for a PDF version of the September 1st webcast slides.

• August 31, 2010

  Nortel Pension Plan Election Information for Terminated Employees: If you have received a termination option statement from Nortel and/or Mercer, please respond promptly. In order that your option form is processed prior to Nortel transferring administration of the Plan to the FSCO-appointed administrator on October 1, 2010, your signed package with all required documents must be received as soon as possible at the following address: Nortel Pension Service Centre, 70 University Avenue, P.O. Box 5, Toronto, ON, M5J 2M4, Canada.

  Packages received after August 31, 2010, may be processed after October 1, 2010, under the direction of the FSCO-appointed administrator.

• August 30, 2010

  WEBCAST FOR THE DISABLED EMPLOYEES ON THE NORTEL HWT- SEPTEMBER 8, 2010 AT 12 P.M.

  Sack Goldblatt Mitchell (SGM), independent counsel for the disabled employees, advising them for the purposes of the allocation of the assets in Nortel’s Health and Welfare Trust, will be hosting a webcast entitled “Nortel Disabled Employees Webcast – Health and Welfare Trust Distribution” on September 8, 2010 at 12:00 p.m. Participants can register through the following link:

  http://bellwebcasting.ca/audience/index.asp?eventid=95260255

  A dial-in audio (listen only) option will be available to individuals who do not have internet access. You must register for this service through SGM. Information on how to participate in the webcast and how to register for the audio only option will be posted on the SGM website during the week of August 30. Please visit the SGM website at http://www.sgmlaw.com/ for more information.

• August 25, 2010

  WEBCAST FOR PENSIONERS SURVIVORS AND FORMER EMPLOYEES OF NORTEL – SEPTEMBER 1, 2010 FROM 3:00-5:00 P.M.

  Koskie Minsky will be hosting an NRPC webcast on September 1, 2010 from 3:00-5:00 p.m. to provide all pensioners and former employees with an update on Nortel’s CCAA proceedings. Participants can register through the following link:

  http://bellwebcasting.ca/audience/index.asp?eventid=97668092

  A dial-in audio (listen only) option will be available to individuals who do not have internet access. You must register for this service through Koskie Minsky. Please leave a voicemail with your name and telephone number on our hotline messaging service, and a representative from our office will contact you to discuss registration and to provide you with the dial-in number for the webcast.

• August 18, 2010

  KM releases a Nortel Pensioner and Former Employee News Bulletin. To view a copy, please click here.

• August 17, 2010

  KM releases a Nortel Disabled Employee News Bulletin. To view a copy, please click here.

• August 6, 2010

  KM releases a revised Disabled Employee Progress Report. To view a copy, please click here. [links no longer active]

  KM releases a revised News Bulletin. To view this document click here.

• July 15, 2010

  Over the past several months, the Canada Revenue Agency (“CRA”) has been reviewing Nortel’s practice for the calculation of individuals’ pensions that include a foreign service earnings component. As a result of this issue, some pension plan members who have foreign earnings and who recently became retirement eligible have experienced process delays and/or have been receiving reduced monthly pensions or transfers based on pension calculations that exclude foreign service earnings.
   
  The CRA recently completed its review and has concluded that Nortel’s historical practice of including foreign service earnings as eligible earnings for the purposes of pension benefits is acceptable. The CRA will continue to permit the calculation of pensions in accordance with this practice. Going forward, it is clear that plan members in receipt of monthly pensions that include foreign service earnings will experience no change to their monthly pension payments. For those individuals who have experienced delays and/or reduced pensions, these issues have now been resolved. Mercer will immediately begin to recalculate affected pensions, however, it may take six to eight weeks to complete most of the recalculations and to implement the appropriate payments and transfers.
   
  Individuals who have already received and submitted an option statement to Mercer will now have their pensions calculated with the inclusion of foreign service earnings. If you have experienced a temporary reduction in your monthly pension or transfer amount based on a calculation that excludes foreign service earnings, you will receive either a lump sum top-up payment or additional transfer amount, as applicable, to compensate you for that reduction. If you received an option statement from Mercer in the past, but have not yet completed your form, please proceed to submit your option statement to Mercer and your pension and/or commuted value entitlement will be calculated with the inclusion of your foreign service earnings. Please contact Mercer with questions that are specific to these issues.
   
  Please note that the CRA continues to review tax issues related to Pension Adjustment Reversals and tax on cash payments of the commuted value of registered pensions. We will advise once this review is complete and a conclusion has been reached by the CRA.

• June 28, 2010

  A Disabled Employee Progress Report was mailed out on June 24, 2010. To view a copy, please click here.

• June 28, 2010

  On June 25, 2010 the Court released its reasons for decision on the annuity matter motion. To view these reasons please click here. [link no longer active] The decision restores the payment of annuities to a group of retirees of Nortel who stopped receiving these payments as of January 14, 2009, the date the company filed for CCAA protection. The annuities in question were created with deferred compensation that the individuals in question had accrued during their employment with Nortel. For tax reasons the annuities were structured so that Nortel received the payments from Sun Life, and then passed them on to the individual annuitants.

  After an analysis based on contract and trust law principles, the Court found that Nortel was being unjustly enriched by retaining the annuity payments, and noted that Nortel was merely a conduit through which payments flowed to the ultimate annuitant. The Court imposed a constructive trust in order to restore these annuity payments to the individual annuitants.

• June 22, 2010

  The Court of Appeal orally dismissed an appeal by the UK Pension Regulator on June 16, 2010. To view a copy of the related endorsement released on June 22, 2010, please click here.

• June 3, 2010

  The Court of Appeal released its decision today denying leave to appeal on a motion that was heard in writing on May 31, 2010. A group of individuals sought leave to appeal the March 31 decision of the Ontario Superior Court of Justice, which approved a Settlement Agreement reached by various parties on March 30, 2010. The Settlement Agreement provides for the continuation of LTD income, medical, dental and life insurance benefits through 2010, and also for a lump sum payment as an advance distribution to certain eligible terminated employees. To view a copy of the endorsement, please click here.

• June 1, 2010

  Over the past several months, parties have been seeking to resolve a number of tax issues that have arisen during Nortel’s CCAA proceedings, which has led to a dialogue with the Canada Revenue Agency (the “CRA”). The CRA has been provided with written submissions on three tax issues, including issues that involve foreign service earnings, Pension Adjustment Reversals (“PAR”) and tax on cash payments of the commuted value of registered pensions. The CRA is now actively studying these issues and we expect a reply in the coming weeks. While the CRA continues to express a willingness to consider potential solutions, we cannot provide you with further information until such time as the CRA completes its analysis and provides us with its position. We will advise on these issues as soon as possible.

• April 29, 2010

  Please click here to view the archived webinar of April 28, 2010. [link no longer active]

• April 28, 2010

  Koskie Minsky held a webcast to provide all disabled employees with an update on Nortel’s CCAA proceedings.

  Please click here for a PDF version of the April 28th webcast.

• April 23, 2010

  Koskie Minsky will be holding a webinar on April 28, 2010 at 2:00 p.m. to provide all disabled employees with an update on Nortel’s CCAA proceedings. Participants can register through the following link: [link no longer active]

  http://events.startcast.com/events6/383/C0008/Default.aspx

  A dial-in audio-only option will be available to individuals who do not have internet access. You can register for this service by leaving a voice message on our hotline with your name and telephone number.

   

• April 20, 2010

  KM releases a Frequently Asked Questions report. To view this document click here.

• April 20, 2010

  Koskie Minsky held a webcast to provide all pensioners and former employees with an update on Nortel’s CCAA proceedings.

• April 13, 2010

  The CRA has been consulted regarding the foreign service earnings issue and the preliminary response was positive. The CRA is open to discussing the matter and to receiving written submissions. We are encouraged by CRA’s willingness to listen and are hopeful that ultimately it will agree that foreign service earnings can be included in determining your pension from Nortel’s registered pension plan. However, there is no certainty at this point concerning resolution of this matter. We expect to meet with the CRA in May and will provide a further up-date after that meeting.

• April 9, 2010

  Following the March 31, 2010 court approval of the Settlement Agreement, which provides for the continuation of LTD income, medical, dental and life insurance benefits through 2010, Nortel employees in receipt of long-term disability benefits received a letter from Nortel.

  Please note the letter does not discuss other sources of recovery for you from Nortel. Although your LTD income benefits and your medical, dental and life insurance benefits will end on December 31, 2010, which is the date your employment with Nortel will be terminated, you have other sources of recovery. The first distribution you will receive, which is targeted to be effected before the end of 2010, is from Nortel’s Health and Welfare Trust. You will also receive a distribution from Nortel’s estate. We are not yet certain when this distribution will be made. Your court-appointed Representative, Representative Counsel and their advisors are looking into options for some form of ongoing medical benefits post-December 31, 2010. We will advise of developments.

  If there are any questions or concerns, please do not hesitate to contact Representative Counsel at 1.866.777.6344.

  Please also do not hesitate to contact the Monitor at 1.866.942.7177 or 1.416.943.4439.

• April 8, 2010

  The reasons for the decision concerning the approval of the Amended and Restated Settlement Agreement were released today. To view this document please click here.

• April 5, 2010

  KM releases News Bulletin. To view this document click here.

• March 31, 2010

  The judge has approved the Amended and Restated Settlement Agreement, which will ensure the continuation of health, dental, life and income benefits through 2010. To view a copy of the Settlement Approval Order and the Amended and Restated Settlement Agreement, please click here.

• March 30, 2010

  The Court-appointed Representatives for the Former Employees, the Court-appointed Representative for the employees of Nortel on long term disability, and Representative Counsel Koskie Minsky LLP, executed an Amended and Restated Settlement Agreement, which will ensure the continuation of health, dental, life and income benefits through 2010.

  A motion for court approval of the Amended and Restated Settlement Agreement has been scheduled for March 31, 2010 at 10:00 a.m. at 393 University Ave.

  Court materials will be posted on the Monitor’s website at www.ey.com/ca/nortel as they become available.

  Les représentants des anciens employés et la représentante des employés de Nortel en congé d’invalidité de longue durée nommés par le tribunal ainsi que le représentant juridique Koskie Minsky s.r.l. ont signé une entente de règlement modifiée et mise à jour, qui assurera le maintien des prestations de soins de santé, de soins dentaires, d’assurance-vie et de revenu pendant toute l’année 2010.

  L’audience d’une requête visant l’approbation de l’entente de règlement modifiée et mise à jour par le tribunal est fixée au 31 mars 2010 à 10 heures au 393, University Avenue.

  Les documents soumis au tribunal seront publiés sur le site Web du contrôleur à l’adresse www.ey.com/ca/nortel au fur et à mesure de leur disponibilité

• March 26, 2010

  The decision concerning the approval of the Employee Settlement Agreement was released today. To view a copy of the decision please click here.

• March 5, 2010

  The court hearing concerning the approval of the Employee Settlement Agreement was completed Friday afternoon, March 5. The judge will advise when he has made a decision and it will be posted on this website when it becomes available.

• February 26, 2010

  We have been advised by the Court that the hearing on March 3, 2010 will now take place at 361 University Avenue, Toronto, Ontario at 10:30 a.m. 361 University Avenue is wheelchair accessible from the University Avenue entrance and has wheelchair accessible washrooms. Please refer to the security desk on the main floor for the Honourable Justice Morawetz’s courtroom.

• February 25, 2010

  The Settlement Agreement, which is subject to Court approval on March 3, 2010, has been posted in both French and English. To view a copy of the English version,please click here.

• February 23, 2010

  Koskie Minsky held a webcast to provide all pensioners, former employees and disabled employees with an update on Nortel’s CCAA proceedings.

  Please click here for a PDF version of the February 23rd webcast.
  

• February 17, 2010

  KM releases a Frequently Asked Questions report. To view this document click here.
  

  • For FAQs that relate to General and Contextual matters, please click here.
  • For FAQs that relate to The Settlement Agreement, please click here. 
  • For FAQs that relate specifically to Former Employees with Termination/Severance Claims, please click here.
    
  • For FAQs that relate specifically to Pensioners, please click here.
  • For FAQs that relate specifically to Disabled Employees, please click here.
• February 8, 2010

  As part of the negotiations following court approval of the final Canadian Funding Agreement, Koskie Minsky LLP, the NRPC and the CNELTD announced today that the Court-Appointed Representatives for the Former Employees, along with the Court-Appointed Representative for the employees of Nortel on long term disability, and representative counsel Koskie Minsky LLP, have reached a deal to ensure the continuation of benefits through 2010.

  To view a copy of the NRPC Press Release which outlines the details of this Agreement, please click here. To view a copy of this document in French, please click here. To view a copy of the CNELTD Press Release which outlines the details of this Agreement, please click here.To view a copy of this document in French, please click here. [links no longer active]

  The full details of the Agreement, which is subject to court approval on March 3, 2010, will be available on the website of the Monitor at www.ey.com/ca/nortel  by February 11th. Individuals who intend to appear and oppose the Agreement in Court must complete a Notice of Appearance in the prescribed form, which will be available at www.ey.com/ca/nortel. The Notice of Appearance must be submitted to the Monitor and the Monitor’s counsel, as detailed on that document, by 10:30 a.m. EST on March 1, 2010. If you wish to appear in Court to oppose the Agreement, you must do so as an independent party at your own expense.

  A letter describing the settlement will be sent to all pensioners, former employees and disabled employees of Nortel on or before February 16, 2010. Further, the Representatives will hold a webcast information session on February 23, 2010 to explain the agreement and its impact. A dial-in audio-only option will be available to individuals who do not have internet access. You can register for this service by leaving a voice message on our hotline with your name and telephone number. In the interim, please direct all inquiries concerning the Agreement to the NRPC, the CNELTD, Representative Counsel or the Monitor.

• February 1, 2010

  Koskie Minsky held a webcast to provide all pensioners, former employees and disabled employees with an update on Nortel’s CCAA proceedings. Participants can review the archive through the following link:

  www.nortelpensioners.ca

• January 25, 2010

  Koskie Minsky will be holding a webcast to provide all pensioners, former employees and disabled employees with an update on Nortel’s CCAA proceedings. The webcast will take place on February 2, 2010 from 3:00 – 5:00 p.m. Information on how to participate in the webcast will be provided to you as it becomes available.

• January 21, 2010

  Court Approves Final Canadian Funding Agreement

  The Canadian and U.S. Courts have approved a final Canadian Funding Agreement (“CFA”) which will see the flow of additional funds from Nortel’s U.S. entities to its Canadian entities. This additional funding is critical to the continued operations of Nortel’s Canadian entities, and was necessary in order to facilitate the ongoing sales processes of Nortel’s business units. It also contains funding for retiree health benefits and pension contributions but only to March 31, 2010. Our main concern is to extend funding past that date as well as to obtain additional funding for LTD coverage and for severance pay issues arising from Nortel’s ongoing operations.

  As part of the CFA settlement, it has been recognized that Nortel Networks Inc., one of the company’s U.S. entities, will have a $2.067 billion claim against the Canadian estate. This $2 billion claim relates to overpayments by NNI to NNL under the Transfer Pricing Agreements that existed during the period from January 1, 2001 to December 31, 2005. Nortel’s transfer pricing arrangements that were in place during the 2001 to 2005 period have been under review by Canadian and United States taxing authorities for several years. After extensive discussion and review of Nortel’s transfer pricing structure, it has been determined that during this period, NNI made a number of transfer pricing overpayments and that a $2 billion inter-company adjustment is necessary to satisfy this overpayment. To rectify the overpayments, NNL and NNI have both entered Advanced Pricing Arrangements with their respective taxing authority. These arrangements will apply to the years of 2001 through 2005, and will provide for a negative adjustment to NNL’s income of $2 billion and a corresponding positive adjustment to NNI’s income. The $2 billion pre-filing claim that has been established in favour of NNI will settle these extremely complex tax issues that exist involving both the Canada Revenue Agency and the U.S. Internal Revenue Service.

  The claim, and in particular its magnitude, was of great concern to counsel for the Former and Disabled Employees, the NPRC, the CNELTD, and to all Canadian creditors generally. After much discussion with counsel for the company, the Monitor and other interested parties, Koskie Minsky was satisfied that the settlement reached is the best outcome given the circumstances. While the existence of this large claim clearly is undesirable, the settlement of the claim at $2.067 billion will avoid a potentially larger claim against the Canadian estate in the future. Further, the settlement will avoid delays in the distribution of Nortel’s estate, and will preclude uncertain, risky and expensive litigation regarding Nortel’s past Transfer Pricing Arrangements which would involve various taxing authorities and dilute recoveries from the estate. The claim is “unsecured”; i.e., at the same ranking as the pensioner, former employee and disabled employee claims.

  To address our main concern, Representative Counsel insisted that the order approving the CFA specifically express the Court’s ongoing ability to determine and grant relief concerning pension, health and disability benefits. Representative Counsel together with the court appointed Representatives are currently involved in negotiations surrounding the continuance of these benefits past the date of March 31, 2010 and possible resolution of some other claims. We insisted that language be included in the order to ensure that the Court was in no way precluded from approving any future settlement and/or any related cash expenditures. The order as entered reflects Representative Counsel’s requests. The judge noted that parties are expected to negotiate in good faith to attempt to reach a settlement with respect to these benefits prior to January 29, 2010. The order also directs the Monitor to advise the Court on the status of these negotiations by January 29, 2010. Your Representatives and Representative Counsel will report further as developments arise. If we cannot reach an agreement, we will take action before the court to obtain ongoing funding and seek a court order to that effect. If this course of action is necessary, Representative Counsel will fight strongly for the continuation of health benefits and LTD income benefits, and the judge will be required to make an ultimate determination as to the length and source of your benefit funding.

  Both Courts approved the CFA. Although the majority of objections were resolved in the days leading up to the hearing, there was one formal objection to the motion in Canada, made by the U.K. pension administrator. The Court, however, dismissed this objection with written reasons to follow. We believe that simply opposing the CFA would have been counterproductive as it would have prevented funds flowing into Canada which can be used to fund your benefits, and furthermore, an objection likely would have been overruled by the Courts.

  After approving the Canadian Funding Agreement, the Court granted an extension of Nortel’s stay of proceedings in Canada until April 23, 2010. The Court also extended the Employee Hardship Process until April 23, 2010. Representative Counsel and the Representatives are currently negotiating the benefits funding extension agreements and other issues of concern with the company, the Monitor and other stakeholders.

• January 15, 2010

  A mailing was sent to all disabled employees of Nortel in order to update individuals on the status of Nortel’s CCAA proceedings and to inform them of potential effects on their LTD income and health benefits. To view a copy of the letter in English please click here.

• January 6, 2010

  The webinar that was originally scheduled for January 7, 2010 has been postponed to later in January. The date and time will be posted when finalized.

• December 27, 2009

  The court has approved an extension of the deadline for the Hardship Application Process to January 31, 2010.

  To view a copy of the Updated Eligibility Requirements in English, click on the following link: [link no longer active]

  Updated Eligibility Requirements (English)

• December 23, 2009

  The Former Employees will seek leave to appeal to the Supreme Court of Canada from the decision of the Ontario Court of Appeal dated November 26, 2009. The Court of Appeal’s decision concerns Nortel’s requirement to make payment of termination and severance pay owing in accordance with provincial minimum standards employment legislation.

• December 18, 2009

  The Court approves an extension of Nortel’s CCAA stay of proceedings until January 29, 2010.

• December 7, 2009

  KM, the NRPC and the CNELTD will be holding a webcast for Pensioners, Former Employees and Disabled Employees in January. The final date will be announced once confirmed.

• December 7, 2009

  KM releases News Bulletin. To view this document click here.

• December 4, 2009

  There have been recent discussions and news reports surrounding Nortel’s employee incentive and retention bonus plans.

  We are working to understand the proposed incentive programs, and to consider their overall effect. We do not have confirmation on the accuracy of the figures cited in recent news reports. We also do not know how these figures were obtained, or how they relate to Nortel’s CCAA proceedings. From what we understand, the figures cited in these reports have not yet been brought before the Court for approval.

  It is the responsibility of the Court to monitor employee compensation, and to approve compensation that is appropriate. KM and the court-appointed representatives want to ensure that these incentive programs are necessary and appropriate and that they do not come at the expense of payments owed to the retiree, severed and disabled employees. If necessary, we will object to the payments when Court-approval is sought.

  We continue to address the situation and will report accordingly.

• November 30, 2009

  The Monitor releases its Thirty-Second Report, which provides certain information in respect of the Northern Telecom Health & Welfare Trust and the employee hardship application process. To view a copy of the Monitor’s Thirty-Second Report, please click here.

• November 26, 2009

  Court of Appeal for Ontario releases decision regarding Nortel’s requirement to make payment of termination and severance pay owing in accordance with provincial minimum standards employment legislation. To view a copy of this decision, please click here.

• October 26, 2009

  KM will be hosting a webcast for Disabled Employees of Nortel on October 27, 2009 at 3:00 pm EST. Participants can register through one of the following links [links no longer available]:

  http://events.startcast.com/events6/383/C0004/Default.aspx

  http://events.startcast.com/events6/Default.aspx?EID=2d763719-b878-4720-adb1-9bd7ef066770

  The webcast will consist of a one hour presentation, followed by a one hour question and answer period. Representatives of KM and of Ernst & Young Inc., the court-appointed Monitor, will be in attendance at the webcast.

• September 29, 2009

  KM releases Weekly News Bulletin. To view this document click here.

• September 28, 2009

  The CNELTD Steering Committee Calls For Volunteers
  
  For those who wish to volunteer with the CNELTD Steering Committee, please click here to view instructions. Please note that the CNELTD have requested submissions by midnight on Wednesday, September 30 2009.

• September 23, 2009

  In accordance with the Representation Order for Disabled Employees dated July 30, 2009, individuals who are part of the LTD Beneficiary group are entitled to opt out of the Representation Order and obtain and pay for their own counsel. In order to opt out of the Representation Order, you must file an opt-out letter with the Monitor by September 25, 2009. The Monitor will accept opt-out letters from LTD Benefiaciaries that are postmarked by the deadline.

• September 22, 2009

  KM Law posts Information Update for Disabled Employees. To view this document, please click here.

   

• August 27, 2009

  On August 26, 2009 the Monitor sent out a mailing to all Disabled Employees. The mailing includes a letter from Representative Counsel, a copy of the Representation Order and a copy of the Opt-Out Form. These documents can be viewed on the Monitor’s website at www.ey.com/ca/nortel.

• August 27, 2009

  To view the archive of the webcast, please register at the NRPC website by clicking here. [link no longer active]

• August 26, 2009

  Leave to Appeal Granted
  
  The Court of Appeal for Ontario released a decision today granting leave to appeal to the Former Employees. The Former Employees sought leave to appeal a decision of the CCAA Court dealing with Nortel’s requirement to make payment of termination and severance pay owing in accordance with provincial minimum standards employment legislation.

  The appeal will be heard on October 1, 2009 at 9:30 a.m.

• August 25, 2009

  Please click here for a PDF version of the August 25th webcast.

• August 25, 2009

  On August 25, 2009 from 4:30 – 6:30 pm, KM and Don Sproule of the NRPC will host a Webcast, which will be broadcast to Former Employees, Pensioners and Disabled Employees across the country. KM will be giving a short presentation followed by a Q&A session to provide you with an update on the status of the Nortel CCAA proceedings and to allow the opportunity to ask questions about this process. The presentations will be given in English, but we will be able to answer questions asked in French.

  Details for how to connect to the Webcast as well as the minimum computer hardware and software requirements to participate will be made available soon. In the meantime, please mark your calendars. For those of you unable to attend the Webcast, the session will be recorded and the playback will be available at www.nortelpensioners.ca.  If you want to submit any questions in advance, you can do so by emailing them to Paula Klein at pklein@nortelpensioners.ca.  

• August 19, 2009

  KM releases Weekly News Bulletin. To view this document click here.

• August 14, 2009

  A conference call between KM and the Canadian Nortel Employees on Long-Term Disability (CNELTD) Committee is scheduled for 2:00 p.m. on August 18, 2009. For more information, please contact the court-appointed Representative, Susan Kennedy, at kennedy.robinson@rogers.com.

• August 12, 2009

  KM releases Weekly News Bulletin. To view this document click here. 

• August 5, 2009

  KM releases Weekly News Bulletin. To view this document click here.

• July 31, 2009

  Canadian Claims Procedure Not Applicable to Pensioners, Former Employees or LTD Recipients
  
  On July 30, 2009, the court approved a Claims Procedure for Nortel’s creditors in Canada. .

  THIS CLAIMS PROCESS DOES NOT APPLY TO CANADIAN PENSIONERS, FORMER EMPLOYEES OR LTD RECIPIENTS. KM is negotiating a separate simplified claims process for all Former Employees, including pensioners, whereby we will prepare the original claims with data from the company and Monitor and send them out to people for verification. This way individuals will not be in the difficult position of having to calculate and submit their own claims. All Former Employee claims will be included in this separate Claims Procedure, as will any lost benefits, including pension and health benefits. Once the process has been determined, we will post information about it on our website. LTD recipients continue to receive their benefits from Nortel and as such, do not have a claim against Nortel as yet. Should claims crystallize, Koskie Minsky as Representative Counsel will also file claims on behalf of LTD recipients.

• July 31, 2009

  On July 30, 2009 the court approved a Hardship Proposal Process by which individuals who are experiencing hardship may apply for early distribution of funds from Nortel. There are specific requirements that must be complied with in order to be qualified to apply. Please refer to our website periodically, as we will be posting the hardship process procedure next week.

• July 30, 2009

  An upcoming Court date has been announced for July 30, 2009. At this hearing, a number of issues will be dealt with. KM will advise Former Employees once issues to be dealt with have been clarified. KM will be in attendance at the July 30 hearing.

• July 30, 2009

  Koskie Minsky has been appointed as Representative Counsel to all LTD Employees, subject to certain exceptions. To view the Rep Order, click here.

• July 27, 2009

  Canadian Claims Procedure Not Applicable to Pensioners and Former Employees

  Nortel is seeking court approval of a Claims Procedure for the company’s creditors in Canada, which will require non-employment related claims to be filed by September 30, 2009. THIS CLAIMS PROCESS DOES NOT APPLY TO CANADIAN PENSIONERS OR FORMER EMPLOYEES OF NORTEL. KM is negotiating a separate simplified claims process for all Former Employees, including pensioners, whereby we will prepare the original claims with data from the company and Monitor and send them out to people for verification. This way  individuals will not be in the difficult position of having to calculate and submit their own claims. TRAs will be included in this separate Claims Procedure, as will any lost benefits, including pension and health benefits. Once we have determined the process for Pensioners and other Former Employees, we will post information about it on our website.

• July 23, 2009

  There has been recent discussion surrounding the establishment of a Claims Process in the U.S. Bankruptcy Court. The U.S. Claims Process does not affect Former Employees in respect of their potential claims against Nortel in Canada. A Claims Process has not been announced in Nortel’s Canadian CCAA Proceedings. Please visit the KM website and the Monitor’s website.

• July 22, 2009

  KM releases Weekly News Bulletin. To view this document click here.

• July 21, 2009

  TO ALL FORMER CANADIAN EMPLOYEES OF NORTEL

  On July 17, 2009, the Pension Benefit Guaranty Corporation (PBGC), a United States government agency, made an announcement concerning Nortel’s U.S. pension plan. The PBGC’s announcement states that the Nortel Networks Retirement Income Plan will be terminated and that the PBGC will seek to take over the plan assets and assume responsibility for paying benefits.

  If you are a member of Nortel’s Canadian unionized and/or salaried pension plan, your plan is not affected by the PBGC’s announcement. The PBGC’s announcement applies only to former U.S. employees of Nortel who belong to the company’s pension plan administered in the United States.

  There have been no announcements made with respect to Nortel’s Canadian pension plans, the Nortel Networks Limited Managerial and Non-Negotiated Pension Plan and the Nortel Networks Negotiated Pension Plan. Pensions in Canada continue to be paid until further notice. To keep updated on the status of your pension plan in Canada, please visit www.nortelpensioners.ca.

• July 15, 2009

  KM releases Weekly News Bulletin. To view this document click here.

• July 8, 2009

  KM releases Weekly News Bulletin.  To view this document click here.

• June 30, 2009

  Clarification of KM’s Representation Order
  
  On June 30, KM attended at a Court appearance on behalf of Former Employees to discuss outstanding issues surrounding KM’s Representation Order for Pensioners and Former Employees.

  The official Representation Order has now been approved and signed by Judge Morawetz. It has been confirmed that KM represents all Pensioners and Former Employees of Nortel, with certain exceptions, including those individuals who opt out of this representation. KM will not be representing employees who are still working at Nortel.

  To view a copy of the Weekly News Bulletin please click here.  

• June 29, 2009

  Joint Hearing between Canadian CCAA Court and U.S. Bankruptcy Court
  
  Interim Funding and Settlement Agreement (IFSA): On June 29, the judges in both courts (Justice Morawetz in Toronto and Justice Gross in Delaware) approved an agreement that will ensure $157M in new funding flows from Nortel’s US subsidiary Nortel Networks Inc., to Nortel’s Canadian parent company, Nortel Networks Limited. The funding will permit Canadian operations to continue through to the end of September, 2009. This arrangement replaces, for now and for CCAA purposes, the “transfer pricing system” (TPS) within Nortel. The TPS was designed to rebalance the internal disparity at Nortel between the Canadian company’s expenditures, especially on R&D, which the whole company benefited from, and the US subsidiary’s revenues. Those payments under the TPS were stopped when Nortel filed for court protection on January 14, 2009.

  Bid Process and Asset Sale Agreement with Nokia Siemens Network: The Courts in both Canada and Delaware also approved the bid and sale process agreed to between Nortel and Nokia Siemens, with some adjustments which resulted from creditors’ objections. Nokia Siemens and Nortel had agreed to a “stalking horse” process whereby Nokia Siemens’ agreement to purchase the majority of the CDMA and LTE business from Nortel for $650 million will be tested in an auction process. Other entities will be permitted to submit bids for the same business and Nortel will choose the winning bid, subject to certain parameters and court approval. New bids are due by July 21st, and the auction will be held in the US on July 24, 2009. A request from a bondholder group – Matlin Patterson, who contends that they will put together a bid which will resemble a restructuring plan – to delay the process for two weeks was rejected.

• June 16, 2009

  Three motions have been scheduled for June 16, 2009. In its first motion, Nortel will seek certain relief in connection with the ERISA Litigation. In its second motion, Nortel will seek to approve and seal portions of the settlement between Nortel Networks Limited, Flextronics Telecom Systems Ltd. and Flextronics Corporation. In a third motion, the Recently Severed Calgary Employees will bring a motion to lift the Stay of Proceedings in order to comply with the requirements of s. 119 of the Canada Business Corporations Act.

• June 1, 2009

  On June 1, 2009, the Court granted two motions by Nortel for the “Hitachi License Agreement” and the “Nortel-LGE Joint Venture Sales Process”. For the motion materials on these asset sales, please visit the Monitor’s website.

• June 1, 2009

  We received the Court’s judgment on June 1, 2009. The Court’s decision does two things. Going forward, a new and reduced transfer ratio of 69% will apply to commuted value transfers out of the Plans.

  Secondly, the Court agreed with KM, Nortel and the Monitor that “Transition Members” should be treated differently in the circumstances. Transition Members are individuals who received election forms to exercise their commuted value payments at the transfer ratios of 85/86% and who: 

      1. have requested but did not receive a commuted value payment as of May 21, 2009; or 

      2. have not yet returned their preferred option as of May 21, 2009.

  There are approximately 490 individuals in the Transition Member group.

  In balancing the interests of all Nortel pension plan members, the Court held that Transition Members are entitled to receive (or elect to receive) the commuted value of their pension at the 85/86% transfer ratio. For those who have not sent in their forms, they must deliver them to Mercer within the applicable deadlines.

  The postponed commuted value payouts that were promised for May 25, 2009, will be made as quickly as possible. As we know that you are anxious to receive your commuted value payments, we will update you immediately once we receive any further information in this regard.

• May 28, 2009

  On May 28, 2009, Nortel brought a motion to seek advice and direction from the Court with regard to pension transfers. Nortel sought to reduce the transfer ratio on commuted value transfers out of the Plans from 85/86% to 69%. KM appeared on behalf of all former employees at this motion. The Former Employees supported the reduction to 69% as a prudent and preservative move, but were concerned about election forms sent to those who had been recently terminated. Prior to the motion, KM worked with Nortel to reach a solution for “Transition Members” who had already been provided with a package setting out their termination options, including a commuted value transfer ratio of 85/86%. The Financial Services Commission of Ontario (“FSCO”) opposed the solution presented by KM and Nortel. No other creditors opposed the motion.

• May 20, 2009

  In a decision released May 20, 2009, the motion brought by Donald Sproule, David Archibald and Michael Campbell was granted, and Koskie Minsky LLP was appointed as Representative Counsel for all former employees of Nortel. The written reasons of the Honourable Justice Morawetz were released on May 27, 2009.

• April 28, 2009

  In an Order dated April 28, 2009, Nortel’s CCAA stay period was extended to July 30, 2009.

• January 14, 2009

  In an Initial Order dated January 14, 2009, Nortel was granted protection from its creditors under the CCAA.

• April 28, 2015 Rapport de Progression Aux Employés Invalides
• April 28, 2015 Disabled Employees Progress Report
• September 22, 2014 Rapport de Progression Aux Employés Invalides
• September 22, 2014 Disabled Employees Progress Report
• December 4, 2013 Disabled Employees Progress Report
• December 4, 2013 Rapport de Progression Aux Employés Invalides
• March 19, 2013 Rapport de Progression Aux Employés Invalides
• March 19, 2013 Disabled Employees Progress Report
• August 31, 2012 Rapport de Progression pour les Employés Invalides
• August 31, 2012 Disabled Employees Progress Report
• March 5, 2012 Rapport De Progression Aux Employés Invalides
• March 5, 2012 Disabled Employees Progress Report
• September 30, 2011 Webémission sur le processus de demandes d’indemnisation(Session pour les employés invalides)
• September 30, 2011 Webémission sur le processus de demandes d’indemnisation
• September 30, 2011 Nortel Compensation Claims Process Webinar
• September 30, 2011 Nortel Compensation Claims Process Webinar(Session for Disabled Employees)
• September 20, 2011 Importantes informations relatives aux webémissions à venir pour les employés invalides de Nortel Networks Corp. et al.
• September 20, 2011 Important Information about Upcoming Webinars for Disabled Employees of Nortel Networks Corp. et al.
• July 22, 2011 Diaporama du 22 juillet 2011
• July 22, 2011 July 22, 2011 Webcast Slides
• July 19, 2011 Mise à jour à l’attention des employés invalides de Nortel Networks Corp. Et al
• July 19, 2011 Update for Disabled Employees of Nortel Networks Corp. et al.
• June 9, 2011 Media Release dated June 9, 2011
• June 9, 2011 Communiqué de presse
• March 8, 2011 Provincial Government Assistance for People with Disabilities and/or High Drug Costs
• March 8, 2011 Rapport de progression pour les employés invalides
• March 8, 2011 Disabled Employees Progress Report
• December 22, 2010 Rapport de progression pour les employés invalides
• December 21, 2010 Disabled Employees Progress Report
• September 1, 2010 September 1, 2010 Webcast Slides
• September 1, 2010 Diaporama du 1er septembre 2010
• August 18, 2010 Bulletin d’informations aux employés invalides de Nortel
• August 18, 2010 Nortel Pensioner and Former Employee News Bulletin
• August 17, 2010 Nortel Disabled Employee News Bulletin
• August 9, 2010 Bulletin d’informations aux retraités et anciens empoyés de Nortel
• August 6, 2010 Nortel Pensioner and Former Employee News Bulletin
• August 6, 2010 Nortel Disabled Employees News Bulletin
• August 6, 2010 Bulletin d’informations aux employés invalides de Nortel
• June 30, 2010 Rapport de progression pour les employés invalides
• June 24, 2010 Disabled Employees Progress Report
• April 28, 2010 Diaporama pour les employés invalides, 28 avril 2010
• April 28, 2010 April 28 Web cast slides for Disabled Employees
• April 26, 2010 Foire aux question de la webémission – 20 avril 2010
• April 20, 2010 Diaporama du 20 avril 2010
• April 20, 2010 April 20, 2010 Web slides
• April 20, 2010 Webinar FAQ – April 20, 2010
• April 9, 2010 01 April 2010 Nortel LTD letter
• April 5, 2010 Bulletin d’information aux retraités, aux anciens employés et aux employés invalides
• April 5, 2010 Pensioners, Former Employees and Disabled Employees News Bulletin
• February 26, 2010 Foire Aux Questions-Employés invalides
• February 23, 2010 Diaporama du 23 Février 2010
• February 23, 2010 February 23, 2010 Webcast Slides
• February 22, 2010 Foire Aux Questions – entente de règlement du financement des prestations
• February 22, 2010 FAQ – questions générales et contextuelles
• February 22, 2010 FAQ – l’entente de règlement
• February 22, 2010 FAQ – anciens employés ayant une réclamation relative au licenciement / à la cessation d’emploi
• February 22, 2010 FAQ – retraités
• February 17, 2010 Frequently Asked Questions – Benefits Funding Settlement Agreement
• February 17, 2010 FAQ – General and Contextual Matters
• February 17, 2010 FAQ’s that relate to The Settlement Agreement
• February 17, 2010 FAQ’s that relate specifically to Former Employees with Termination/Severance Claims
• February 17, 2010 FAQ’s that relate specifically to Pensioners
• February 17, 2010 Frequently Asked Questions – Disabled Employees
• February 8, 2010 Media Release: NRPC Announces Negotiated Deal for its Constituency
• February 8, 2010 Avis aux médias: La SRNC annonce la négociation d’une entente pour ses mandants
• February 8, 2010 Avis aux médias: Le CNELTD annonce la négociation d’une entente pour ses mandants
• February 8, 2010 Media Release: CNELTD Announces Negotiated Deal with Nortel and the Monitor
• December 10, 2009 Bulletin d’information aux retraités, aux anciens employés et aux employés invalides
• December 7, 2009 Pensioners, Former Employees and Disabled Employees News Bulletin
• October 2, 2009 Bulletin d’information aux retraités, aux anciens employés et aux employés invalides
• September 29, 2009 Pensioners, Former Employees and Disabled News Bulletin
• August 25, 2009 August 25th Webcast Slides
• August 25, 2009 Diaporama du 25 août 2009
• August 19, 2009 Bulletin d’information aux retraités, aux anciens employés et aux employés invalides
• August 19, 2009 Pensioners, Former Employees and Disabled Employees News Bulletin
• August 12, 2009 Bulletin d’information aux retraités, aux anciens employés et aux employés invalides
• August 12, 2009 Pensioners, Former Employees and Disabled Employees News Bulletin
• August 7, 2009 Bulletin d’informations aux retraités et anciens employés
• August 5, 2009 Pensioners, Former Employees and Disabled Employees News Bulletin
• July 30, 2009 Notice of Hardship Application Process
• July 30, 2009 Demande d’Indemnité pour difficultés d’existence
• July 30, 2009 Hardship Eligibility Requirements
• July 30, 2009 Hardship Application
• July 30, 2009 Conditions d’admissibilité
• July 22, 2009 Bulletin d’informations aux retraités et anciens employés
• July 22, 2009 Pensioners and Former Employees News Bulletin
• July 15, 2009 Pensioners and Former Employees News Bulletin
• July 15, 2009 Bulletin d’informations aux retraités et anciens employés
• July 8, 2009 Bulletin d’informations aux retraités et anciens employés
• July 8, 2009 Pensioners and Former Employees News Bulletin
• June 30, 2009 Bulletin d’Informations aux retraités et anciens employés
• June 30, 2009 Pensioners and Former Employees News Bulletin

Frequently Asked Questions and Answers – Tax Slips for 2017

Frequently Asked Questions and Answers – Qualifying Retroactive Lump-Sum Payments (“QRLSP”)

Frequently Asked Questions and Answers – Eligibility for direct transfers to RRSPs for certain employment claim payments

Frequently Asked Questions and Answers: Wind-Up of Pension Plans – Inquiries from US Residents

Frequently Asked Questions and Answers: Tax Appeal

Frequently Asked Questions – 2014 Tax Slips

February 14, 2013 Webinar Questions

Frequently Asked Questions and Answers – Tax Test Case Appeals

Frequently Asked Questions and Answers – Types of Claims

Frequently Asked Questions and Answers – About Administrative Matters

Frequently Asked Questions and Answers – The Methodologies

Frequently Asked Questions and Answers – Distribution and Taxation Matters

Frequently Asked Questions and Answers – General Claims Process Questions

Frequently Asked Questions and Answers – Advancing Additional Claims and Using Form C

Frequently Asked Questions and Answers – Registered Pension Plan Claims

Frequently Asked Questions and Answers – Timing & Deadlines

July 22, 2011 Webinar FAQ – Content Based on Webinar on Pension Plan Cutbacks

Webinar FAQ – April 20, 2010

Frequently Asked Questions – Benefits Funding Settlement Agreementt

Frequently Asked Questions – Disabled Employees

For more information, please contact KM at nortel@kmlaw.ca  or by calling our toll free hotline at 1.866.777.6344.

For further information concerning Nortel’s CCAA proceedings, please visit the NRPC website at www.nortelpensioners.ca.

For access to all public Court documents, please visit the Monitor’s website at:

http://documentcentre.eycan.com/Pages/Main.aspx?SID=89&Redirect=1

Please do not contact the judge or the CCAA Court with your concerns. Contacting the Court directly is highly inappropriate and counterproductive. Please channel all inquiries and concerns through KM or the NRPC.

Global Settlement and Support Agreement – Updated October 12, 2016

After nearly 8 years of skirmishing among stakeholders, and financial hardship suffered by our constituents, the Court-appointed Representatives, together with the NRPC and CNELTD, are very happy that a settlement has been reached which will pave the way to finally putting money into people’s pockets.

The victories secured in court, especially, as described further below, over the last two years, were the catalyst to this settlement which yields substantially more than any creditor group was prepared to concede in court to Canadian creditors.

The allocation of the roughly US $7.3 billion collected from the sales of Nortel’s worldwide businesses (the “lockbox”) has been settled, with some conditions. Pursuant to the Global Settlement and Support Agreement, the Canadian Estate will receive approximately 57% of the lockbox (US $4.143 billion). Some of the proceeds will be converted to Canadian dollars, and together with the funds currently in the Canadian Estate, will be made available to Canadian creditors through the claims process.

The Global Settlement and Support Agreement is subject to certain conditions, including CCAA and Chapter 11 plans to be voted on by creditors in the Canadian and US Estates and court approval in Canada, the US and Europe.

Assuming that all conditions are satisfied, the Monitor of the Canadian Estate estimate that a payment on claims will be made in the first half of 2017.

To view a copy of the press release from the Canadian Estate please click here. To view a copy of the Global Settlement and Support Agreement please click here.

In addition, to access the Koskie Minsky Legal Update slides which are being presented at the Managerial Plan wind up roadshows please click here.

We will continue to provide information as it becomes available, including projections of the percentage amount to be distributed to creditors – including pensioners, former and disabled employees – on their claims.

Allocation Litigation Trial

The Ontario Court of Appeal denied the applications of a number of US parties to appeal the May 12, 2015 decision of Newbould, J. requiring the assets from the sale of Nortel’s businesses and intellectual property be allocated pro rata. To view a copy of the May 3, 2016 decision please click here.

A number of the US Interests have sought leave to appeal from the Supreme Court of Canada (“SCC”), including the US Debtors, Bondholders, Unsecured Creditors Committee (UCC), the Bank of NY Mellon, a newly formed trade creditor consortium and a newly appointed conflict administrator on behalf of French Estate.

The deadline to respond to the SCC leave applications was put on hold pursuant to an agreement reached by the parties and approved by the SCC to allow the parties to continue confidential negotiations. The deadline to respond was extended to November 30, 2016.

The May 12, 2015 decisions:

On May 12, 2015, both the Ontario Superior Court of Justice (Commercial List) and the United States Bankruptcy Court released decisions requiring the allocation of assets from the sale of Nortel’s businesses and intellectual property be based on a pro rata approach. The decisions require that the “lockbox” of funds from the patent and business sales is to be allocated proportionately based on the aggregated claims in each of Canada, the US and EMEA. Based on these decisions, all creditors, including Canadian pensioners and disabled employees, are to receive a fair and equitable payment of their claims. The decisions take an unprecedented approach, and are a major breakthrough in the cross-border litigation.

The Canadian Creditor’s Committee (CCC), representing employee and pension interests, advocated pro rata as the most equitable allocation method, and it best reflected the reality of the way that Nortel functioned globally as a highly integrated organization.

To view a copy of the decision of Justice Newbould of the Ontario Superior Court of Justice (Commercial List) dated May 12, 2015 please click here.

To view a copy of the opinion of Judge Gross of the U.S. Bankruptcy Court dated May 12, 2015 please click here. To view a copy of Judge Gross’ Allocation Order dated May 12, 2015 please click here.

Reconsideration of the May 12, 2015 Decisions:

Following the release of the two decisions, the US Interests, including the US Debtors and the Ad Hoc Group of Bondholders, filed motions in the US and Canada for clarification and/or reconsideration. A joint hearing was held by both courts on June 25, 2015 to determine some points of clarification.

On July 6, 2015, the Ontario Superior Court of Justice (Commercial List) and the United States Bankruptcy Court released decisions denying reconsideration of issues raised by the US Interests while providing clarifications further to the May 12th allocation decisions.

To view a copy of the decision of Justice Newbould of the Ontario Superior Court of Justice (Commercial List) dated July 6, 2015 please click here.

To view a copy of the memorandum order of Judge Gross of the U.S. Bankruptcy Court dated July 6, 2015 please click here. To view a copy of Judge Gross’ Allocation Order dated July 6, 2015 please click here.

Appeal of the May 12, 2015 Decision in the US:

In the US, notices of appeal were filed by the US Debtors, Bondholders, Pension Benefits Guarantee Corporation (PBGC) and the UCC. Cross appeals were filed by the Trade Claims Consortium, as well as the UK Joint Administrators, the Monitor and the CCC. The appeal was heard by Judge Leonard P. Stark of the District Court in Delaware on April 5, 2016.

However, following the release of the Ontario Court of Appeal decision on May 3, 2016, Judge Stark invited the parties to make submissions on whether the Court should certify a direct appeal to the Court of Appeal for the Third Circuit. On May 17, 2016, after considering the submissions, Judge Stark certified the appeal.

The CCC, Canadian Monitor and Debtors, NNUK and Wilmington Trust filed a petition to the Third Circuit Court of Appeal requesting a direct appeal. On August 9^th the Third Circuit released its decision granting the direct appeal and directing parties to attend a case management conference.

The appeal was subsequently put on hold at the parties request as the parties advised the courts they were engaged in confidential settlement discussions. The parties were given until October 7, 2016 and subsequently this date was extended to December 7, 2016.

Post-Petition Interest Hearings

On Thursday, May 5, 2016 the Supreme Court of Canada denied the leave to appeal application of the Ad Hoc Bondholders on the “interest stops rule” and granted costs against them.  To view a copy of the decision please click here..

The issue of post-filing interest was first raised during the allocation trial. Both Courts asked the parties to address the issue and ultimately agreed to a joint hearing on the entitlement to post-filing interest.  The transcript of Justice Newbould’s decision can be viewed here and theorder of the US Court setting the date for the post-filing interest hearing can be viewed here.

Canada

On August 19, 2014, Justice Newbould of the Ontario Superior Court of Justice (Commercial List) released his decision that Nortel Bondholders were not entitled to post-filing interest in Canada. The CCC, Monitor and Canadian Debtors, UK Pension Claimants, EMEA Debtors and Wilmington Trust successfully argued that post-filing interest was not legally payable. The decision of Justice Newbould dated August 19, 2014 can be viewed here

The Ontario Court of Appeal unanimously dismissed the Bondholders’ appeal from the August 19, 2014 decision on October 13, 2015 and awarded the responding parties with costs. The Court agreed with Newbould that the “interest stops rule” applies in CCAA proceedings. The Court of Appeal held at paragraph 8 that “there are sound legal and policy reasons for applying the interest stops rule in the CCAA context”. The Court adopted the CCC and Monitor’s argument that pari passu and the status quo were compromised if one group of creditors received post-filing interest and the other was prevented from asserting their right to sue and obtain judgment with interest. To view a copy of the Court of Appeal decision please click here.

United States

The hearing in the US Court was adjourned as a result of a “settlement” between the U.S. Debtors and certain bondholders. The settlement allows for as much as US $1.0 billion in post-filing interest payable to the guaranteed noteholders from the U.S. Estate. The U.S. Court heard the motion for approval of the settlement agreement on November 4th and 5th 2014.

On December 18, 2014 Judge Gross released his decision approving the bondholder post filing interest settlement. A copy of his Order is available here and his reasons can be accessed here.

On December 31, 2014 the Canadian Debtors and Monitor filed a Notice of Appeal. A proposed schedule for filing material was submitted in a joint-statement by the parties to the District Court but no order has yet been entered with respect to the proposed schedule. We will advise as soon as further information becomes available.

UK Pension Claimants – Claims Trial

On December 9, 2014, Justice Newbould released his decision denying all but one claim asserted by the UK Pension Claimants against the Canadian Debtor. He allowed their claim to a Funding Guarantee. The trial was held over 12 days in July 2014 and closing submissions were made September 29, 30 and October 1, 2014.

The decision is a significant victory for the Monitor and Canadian Debtors as the UKPC submitted a number of claims pursuant to UK pension legislation, guarantees, claims for oppression and unjust enrichment, all of which were rejected. The Funding Guarantee was allowed at £339.75 million, a fraction of the original claim amount. A copy of the decision of Justice Newbould can be viewed here.

The UKPC appealed the decision of Justice Newbould with respect to one of the guarantees that he denied and the Monitor cross-appealed arguing that the one claim that was allowed should not have been. The Ontario Court of Appeal heard the decision on February 17 and 18, 2016. The parties are now awaiting a decision.

Background – Allocation Litigation Process Prior to 2015

In June 2011, Justice Geoffrey B. Morawetz of the Ontario Superior Court of Justice and Judge Kevin Gross of the U.S. Bankruptcy Court in Wilmington, Delaware, ordered a mediation among all parties to the bankruptcy proceedings of Nortel Networks Corporation while their decisions on motions seeking the allocation of Nortel’s assets were put on hold.

Mediation

The Honourable Warren K. Winkler, the Chief Justice of Ontario, was appointed mediator. He met with all parties in Toronto in April 2012 after a delay at the request of the US Bankruptcy Court.

Between August and October 2012, Chief Justice Winkler held a series of intensive meetings with the stakeholder groups and requested that each provide a confidential settlement proposal. The CCC worked to present a joint solution to the Mediator.

A mediation session was held the week of January 14, 2013 extended twice to try and resolve all matters.

On January 24, 2013 Chief Justice Winkler announced that the mediation had ended without any agreement having been reached.

Allocation Litigation Trial

On January 31, 2013, Justice Morawetz and Judge Gross ordered all parties to the bankruptcy proceedings of Nortel Networks Corporation to submit a list of what they considered to be current, outstanding issues. Submissions were due to Justice Morawetz by Friday February 8, 2013 and a report on behalf of the former employees and disabled employees was filed that day by the court appointed representatives and their advisors, working together with CCC. As part of the submissions, the CCC requested expeditious hearing for the outstanding issues. A copy of the submissions made on behalf of the CCC may be viewed here.

On February 13, 2013 Justice Morawetz and Judge Gross both ordered a joint rehearing of the submissions of a June 2011 motion regarding a proposed Allocation Protocol. The Correspondence of Justice Morawetz and the order of Judge Gross can be viewed at the following link.

The joint hearing was held on March 7, 2013 and decisions were released by both the U.S. and Canadian Court on March 8, 2013 approving the Allocation Protocol. The Allocation Protocol provides for the U.S. and Canadian Courts to determine the claims and allocation issues that remain before the parties.

A cross-motion of the Joint Administrator of Nortel Networks UK Limited seeking private arbitration instead of joint hearings by the Canadian and US courts was dismissed.

Justice Morawetz ordered the Monitor to establish a list of the core parties and to begin establishing a litigation schedule.  Your court appointed representatives and their advisors working together with the CAW, the wind-up administrator of the Nortel Pension Plans, Morneau Shepell and the Financial Services Commission of Ontario, and Representatives of Nortel active and transferred employees (a group known as the “Canadian Creditors Committee” or “CCC”) were made a Core Party.

Judge Gross released a similar decision in the United States.

The Allocation Protocol and the endorsements of Justice Morawetz and Judge Gross may be viewed at the following link.

On April 3, 2013, Justice Morawetz and Judge Gross released written reasons for their March 8, 2013 approval of the Allocation Protocol. To view a copy of the Endorsement of Justice Morawetz please click here. To view a copy of Opinion of Judge Gross please click here and to view a copy of the Order of Judge Gross please click here.

On December 3, 2013, Justice Morawetz allowed a motion amending the litigation schedule that set the start date of the trial to May 12, 2014. To view a copy of the Order of Justice Morawetz entered and filed with the court on December 3, 2013, please click here.

A similar order was issued by Judge Gross of the US Court on November 27, 2013. To view a copy of the order of Judge Gross, please click here.

The trial to determine the allocation of Nortel’s assets began on May 12th, 2014 with the evidentiary portion of the trial including fact and expert witnesses providing testimony for 21 days from May 12th to June 24th, 2014. Daily summaries of the evidentiary portion of the trial can be accessed here.

The positions of the parties with respect to allocation are provided below.

The pre-trial positions of the parties with respect to the allocation of Nortel’s assets are provided in the pre-trial briefs below:

• CCC Pre-Trial Brief
• Monitor and Canadian Debtor Pre-Trial Brief
• UKPC Pre-Trial Brief
• EMEA Debtors Pre-Trial Brief
• US Debtors Pre-Trial Brief
• Ad Hoc Group of Bondholders Pre-Trial Brief

Post-hearing submissions were submitted by the parties in writing on August 7th, 2014 and are available below:

• CCC Post-Trial Brief
• CCC Finding of Facts and Conclusions of Law (FOFCOL)
• Monitor and Canadian Debtors Post-Trial Brief and (FOFCOL)
• US Debtors Post-Trial Brief 
• US Interests FOFCOL
• Ad Hoc Group of Bondholders Post-Trial Brief
• EMEA Debtors Post-Trial Brief and FOFCOL
• UKPC Post-Trial Brief and FOFCOL
• Wilmington Trust Post-Trial Brief
• Law Debenture Trustee’s Joinder – Closing Brief

Reply submissions were filed on September 10th, 2014 and are provided below:

• CCC Reply Closing Brief
• Monitor and Canadian Debtors Rebuttal Post-Trial Brief
• US Interests Post-Trial Reply Brief
• Ad Hoc Group of Bondholder
• EMEA Debtors Post-Hearing Reply Submissions
• UKPT Post-Trial Reply Brief
• Wilmington Trust Post-Trial Response Brief
• Monitor and Canadian Debtor Supplemental finding of Fact

Closing arguments for the trial to determine the allocation of Nortel’s assets were heard on September 22-24, 2014.

• Trial Summary Day 22 (Day 1 of Closing Submissions)
• Trial Summary Day 23 (Day 2 of Closing Submissions)
• Trial Summary Day 24 (Day 3 of Closing Submissions)

UPDATE (December 5, 2017):

Latest Developments:

Morneau Shepell has implemented increases for pensioners-in-pay who chose the annuity option under both the Negotiated and Managerial Pension Plans pursuant to addenda filed with Financial Service Commission of Ontario (“FSCO”) subject to certain exceptions described below. The increases were made with the November 25^th deposit for both the Plans and a retroactive payment has been made as a separate direct deposit.

Those who elected a lump sum transfer of their commuted value will be provided with lump sum amounts in the first or second quarter of 2018.

Please note that the increases do not include:

• Ontario pensioners covered by the Pension Benefits Guarantee Fund (PBGF) with benefits of $1,000 or less;
• Quebec pensioners who elected the RQ option in the Negotiated Plan, which the RQ will make at a later date in 2018; and
• Estates where as a result of the death of a pensioner (or survivor) monthly payments are no longer being made, however, a retroactive payment is owed, which will be made some time in 2018.

In addition, amounts relating to Ontario service do not include the CCAA recovery for indexation. The court appointed Representatives filed an objection with the Superintendent of Financial Services with respect to the proposed distribution of amounts recovered for indexation in an addendum to the wind up report filed by the administrator of the Nortel pension plans, Morneau Shepell.

The Representatives object to the amounts recovered for indexation on behalf of Ontario members entitled to indexation from being incorporated in the calculation on the funded ration and ultimately being used  to reduce the PBGFs obligation towards the pension plans, rather than going directly to each member’s individual claim for lost indexation. In aggregate, the advisors for the Representatives believe the amount in dispute could be worth up to $100 million that would go to eligible Ontario members instead of the PBGF.

Submissions are being exchanged by the parties at this time and the possible next step may include an appearance before the Financial Services Tribunal of Ontario.

If you have any questions regarding the increases to pension benefits, retroactive payments or QRLSP forms that were included with Morneau’s Notice of the increase, please contact Morneau Shepell directly at:

• Negotiated Pension Plan: 1-877-392-2073
• Managerial and Non-Negotiated Pension Plan: 1-877-392-2074

Background

On October 1, 2010, Morneau Shepell Ltd. (“Morneau Shepell”) was appointed as the Administrator of:

1. the Nortel Networks Negotiated Pension Plan (the “Negotiated Plan), and
2. the Nortel Networks Limited Managerial and Non-Negotiated Pension Plan (the “Managerial and Non-Negotiated Plan”)

(together the “Plans”), for the purposes of winding up the Plans, and settling the pension benefits for all members and retirees.

Managerial and Non-Negotiated Plan

The wind up report for the Managerial Plan was approved by the Superintendent of Financial Services on June 30, 2016. Morneau commenced mailing option forms on August 30, 2016.

Members had until January 31, 2017 to return option forms with certain exceptions. However, due to legislative requirements, members with employment in Quebec had until February 28, 2017 to return their forms.

Failure to return the Option Form, or to make a selection, resulted in the default option being imposed.

In order to assist you with the completion of the option forms, Morneau Shepell  conducted information sessions in October and November of 2016 in person and by webinar.

In order to assist members in making their selection and to provide information about the available options, live sessions were held across the country.

Webinars:

• November 24, 2016 (10 am EST) Non-Québec Members in English:
  • Accessible online at: http://bell.media-server.com/m/p/77mpcaa2
• November 25, 2016 (10 am EST) Québec Members in French
  • Accessible online at: http://bell.media-server.com/m/p/4t736eqt
• November 25, 2016 (1 pm EST) Québec Members in English
  • Accessible online at: http://bell.media-server.com/m/p/csotu6m2

To view a detailed agenda of the Member Meetings including venue addresses please click here.

Additional information for Managerial Plan Members is available at the links below:

• Morneau Shepell’s Ontario and Pooled Jurisdictions Slides
• Morneau Shepell’s Quebec Member Meeting Slides (English)
• Morneau Shepell’s Quebec Member Meeting Slides (French)
• Guide to making your Nortel Pension Payment Choice: Important Issues to Consider (for members who retired in Ontario);
• Summary of Important Issues to Consider (for those whose last Managerial Plan Participation was in Ontario or Quebec);
• Summary of Important Issues to Consider (for those whose last Managerial Plan Participation was in Ontario or Quebec) (French);
• Guide to making your Nortel Pension Payment Choice: Important Issues to Consider (for those whose last Managerial Plan Participation was not in Ontario, Quebec, or Nova Scotia);
• Guide to making your Nortel Pension Payment Choice: Important Issues to Consider (for those whose last Managerial Plan Participation was in Quebec).
• Guide to making your Nortel Pension Payment Choice: Important Issues to Consider (for those whose last Managerial Plan Participation was in Quebec) (French).
• Koskie Minsky Legal Update regarding the Settlement Agreement
• Option: Pension Administered by Retraite Québec – Member Information Meeting slides

In addition, the following two Frequently Asked Questions (FAQ’s) have been prepared to address some questions we have received with respect to the Managerial Plan wind up:

1. FAQ regarding Pension Adjustment
2. FAQ regarding recalculation of transfer values (ON service)

Negotiated Plan

The wind up report for the Negotiated Plan was approved by the Financial Services Commission of Ontario (“FSCO”) on September 15, 2015.

Morneau commenced mailing Option Forms to Negotiated Plan members on Monday November 16, 2015 and expects the mailing to be completed by November 23, 2015. Members had until February 16, 2016 to return their option forms.

In order to assist members in making their selection and to provide information about the available options, live sessions were held across the country.

The full meeting schedule for Negotiated Plan members who retired outside of Quebec is available here.

The full meeting schedule for members who retired from Nortel in Quebec is available here.

The archived webinars (slides + audio) are available at these links:

Additional information for Negotiated Plan Members is available at the links below:

Non-Quebec Negotiated Plan members – English

• Webinar slides (no audio).

• Guide to making your Nortel Pension Payment Choice: Important Issues to Consider (for members who retired in Ontario).
• Guide to making your Nortel Pension Payment Choice: Important Issues to Consider (for members who retired in provinces other than Ontario, Quebec or Nova Scotia).
• Summary of Important Issues to Consider.

 Quebec Negotiated Plan members – English

• Webinar slides (no audio).
• Guide to making your Nortel Pension Payment Choice: Important Issues to Consider (for members who retired in Quebec), including discussion of options with the Régie des Rentes du Québec and your alternatives.
• Summary of Important Issues to Consider.

Quebec Negotiated Plan members – French

Pour consulter une copie du diaporama du webinaire du Québec et obtenir de plus amples renseignements, veuillez cliquer ici pour vous rendre sur la version française de cette page.

Morneau has now finalized and settled most benefits. If you have any questions regarding your option please contact Morneau Shepell at 1-877-392-2073.

Impact of the Allocation Litigation

The wind up of the two Plans was being completed irrespective of the status of the allocation litigation. This means that distributions for the claim against the Nortel Estate for the pension deficit was not available at the time certain actions were taken by the administrator (including the payment of lump-sum amounts and adjustments).

For more information on the status of the allocation litigation please visit our Allocation Litigation tab by clicking here.

On July 19, 2011 the CRA issued Advance Income Tax Rulings stating that lump sum payments made in connection with the termination of group term life insurance coverage out of the HWT (which includes benefits that are often referred to in the Nortel insolvency proceedings as Pensioner Life, LTD Basic Life and LTD Optional Life) and in connection with the termination of Survivor Income Benefits and Survivor Transition Benefits out of the HWT, are to be included in income and subject to tax. A similar ruling was issued by Revenu Québec.

At the request of the Court-appointed Representatives in the Nortel insolvency, Koskie Minsky LLP was instructed to test the correctness in law of the Advance Income Tax Rulings. An agreement was entered into with the Department of Justice, which represents the CRA in tax appeals, to treat four appeals representing each category of payment as Test Case Appeals in the Tax Court of Canada.

On Friday, November 10, 2017, the Tax Court of Canada released a decision in the Test Case Appeals (2017 TCC 224).

In his decision, the Honourable Mr. Justice Sommerfeldt held that the distributions from the Health and Welfare Trust in respect of the loss of group term life insurance policy for pensioners and disabled members are not taxable under subsection 6(4) of the Income Tax Act and cannot otherwise be included under paragraph 6(1)(a).

The Tax Court decision, however, held that both Survivor Income Benefits (SIB) and Survivor Transition Benefits (STB) are taxable as payments in lieu of death benefits under section 56(1)(a)(iii) of the Income Tax Act.

To date, the CRA and Revenu Québec have held the notices of objection in abeyance pending the resolution of the Test Case Appeals. Neither the CRA nor Representative Counsel will be appealing the decision. We will provide updates on the handling of the objections once we confirm with the CRA and with Revenu Québec.

To view Frequently Asked Questions and Answers regarding the Tax Test Case Appeal please click here.

Update: March 11, 2015

On March 11, 2015, the Ontario Superior Court of Justice (Commercial List) increased the maximum amount that can be applied for from the Hardship Fund as follows:

i. Former employees (including LTD beneficiaries) are now eligible to apply for a maximum payment of up to 16 weeks of salary based on a maximum weekly salary of up to $1,200 per week. A further $5,000 can be awarded at the discretion of the hardship committee in the case of medical or other emergency (for a total maximum of $24,200); and

ii. Pensioners and Survivors are now eligible for a maximum payment of $10,000.

The increases were recommended by the Monitor in recognition of the ongoing hardship being experienced by claimants as the proceedings have continued longer than originally anticipated when the Hardship Process was established.

The eligibility requirements and criteria have not changed and are available below as well as the Application:

Application for Hardship Payments

Eligibility Requirements and Procedure with Respect to Hardship Payment Applications

By Order dated July 30, 2009, the Ontario Superior Court of Justice (Commercial List) appointed a representative, Susan Kennedy, to act on behalf of all Disabled Employees of Nortel, (subject to certain exceptions, including those who are represented by Unifor, formerly CAW. To view the Representation Order, please click here.

The Canadian Nortel Employees on Long-Term Disability (“CNELTD”) committee was formed shortly after the Representation Order was made. For more information on the CNELTD, please send an email to SteeringCommittee@cneltd.info.

Report Mailings

Representative Counsel regularly sends mailing to former employees who were in receipt of disability income.

The most recent report was mailed on November 15, 2016 and can be viewed here.

To see the past mailings, please see the News Release & Reports tab at the following link.

Please also refer to the main page to keep up to date with the Latest Developments on issues including the Allocations Litigation, the Pension wind-up and other general issues.

Hardship Fund

On July 27, 2012 the Court approved the expansion of the scope of Nortel’s Hardship Fund to include Nortel LTD Beneficiaries, including those who are receiving CPP-Disability or the Quebec Equivalent.

On March 11, 2015, the Ontario Superior Court of Justice (Commercial List) approved an increase to the maximum a former employee (including LTD’s) can apply to receive from the Hardship Fund. For further information on the increased maximum please click here.

Payments from the Hardship Fund are treated as an advance on future distributions from the Nortel estate, so any amount awarded will be deducted from the recipient’s ultimate Compensation Claim recovery from the Nortel estate.

If you are in a position of immediate financial hardship, you may request a payment from the Fund by completing a Hardship Payment Application. Koskie Minsky can help you complete this form. This will be a private and confidential process, and you will not be required to share your personal information with anyone other than the Monitor, who is responsible for assessing your application, and your Representative Counsel.

For more information regarding the Hardship Fund, please see the Hardship tab, which can be accessed at the following link.

The Monitor continues to review the Personal Information Change Forms (Form B) and Proof of Claim Forms (Form C) it received before the deadline of 4:00 pm EST on January 6, 2012.  The review is being completed in no particular order and a response is being sent as soon as the review is completed.

For those individuals who have received a response from the Monitor, either as a Monitor Corrected Personal Information form, Notice of Disallowance or Partial Notice of Disallowance, and would like to dispute the finding, please ensure that you complete a Dispute Notice within twenty-eight (28) calendar days after the response has been sent to you by the Monitor.

Please note that the deadline to submit most changes to your Form A (Your Information Statement Package) and Proof of Claims (Form C) passed as of 4:00pm EST on January 6, 2012.

If you have any questions about the Timing and Deadlines, please review the Timing and Deadlines FAQ that has been prepared on this topic. Please contact us by email at nortel@kmlaw.ca or telephone at 1.866.777.6344 if you have any questions or concerns.

To view Frequently Asked Questions and Answers, please click here.

For employees submitting a claim for a severance contingency, please click here.

A description of what actions – if any – are required has been posted on the Monitor’s website.

Material relating to the Compensation Claims Process can be accessed by clicking on the following links:

• Compensation Claims Procedure Order – October 6, 2011
• Compensation Claims Methodology Order – October 6, 2011
• Guide to Using Form B – English
• Guide to Using Form B – French
• Termination and Severance Claim Methodology
• Patent Award Methodology
• Proof of Claim Document Package – English
• Proof of Claim Document Package – French
• Mercer 2011 Non-Pension Benefits Valuation
• Mercer 2011 Non-Registered Pension/Pension Accrual Valuation
• Applicants’ Motion Record, Tabs 1 – 3 (Including the Monitor’s 75th Report)
• November 2011 Webcast Slides

*Please refer to the Address Change Information tab for information on how to submit an address change.

It is your responsibility to advise the Monitor/Representative Counsel and Administrator of the Pension Plan of any changes to your personal information.

Address Change Information

In order to report a change of address, please take the following steps:

1. Print the Change of Address Form
2. Complete the Change of Address Form and locate supporting documentation for your new address.  Examples of supporting documentation include a driver’s license or a recent utility bill.
3. Send the completed Change of Address Form, along with a photocopy of your supporting documentation, to Koskie Minsky at the address, email or fax number listed on the bottom of the Change of Address Form.
4. Once your change of address has been accepted, Koskie Minsky will communicate the address change to the Monitor. You do not need to contact the Monitor.

Important Note:  If you are a registered pension plan member then you must also contact Morneau Shepell directly to advise of a change of address.  Morneau Shepell can be reached at:

Negotiated Plan Members: 1.877.392.2073
Managerial Plan Members: 1.877.392.2074

If you have any questions about the Change of Address Form, please contact Koskie Minsky by email at nortel@kmlaw.ca or at 1.866.777.6344

Notification of Death

In order to notify us of death, please take the following steps:

1. Print the Notification of Death Form
   
2. Complete the Notification of Death Form and locate supporting documentation.
3. Ensure you provide supporting documentation that includes:

             a. Notarized Death Certificate; and
             b. Notarized Last Will and Testaments; and
             c.  Certificate of Appointment of Estate Trustee with a Will; and
             d.  Copies of documentation supporting the address for each authorized representative (i.e. a utility bill or drivers’ license)

4. Send the completed Notification of Death Form, along with the supporting documentation, to Koskie Minsky at the address, email or fax number listed on the bottom of the Notification of Death Form.
5. Once your information has been accepted, Koskie Minsky will communicate the address change to the Monitor. You do not need to contact the Monitor.

Important Note:  If you are a registered pension plan member then you must also contact Morneau Shepell directly to notify them of the death.  Morneau Shepell can be reached at:

Negotiated Plan Members: 1.877.392.2073
Managerial Plan Members: 1.877.392.2074

If you have any questions about the Notification of Death Form, please contact Koskie Minsky by email at nortel@kmlaw.ca or at 1.866.777.6344

Please also read the frequently asked questions regarding Changes to Personal Information available here.

August 25, 2009 Webcast Slides

September 1, 2010 Webcast Slides

July 22, 2011 Webcast Slides

Nortel Compensation Claims Process Webinar

Nortel Compensation Claims Process Webinar (Session for Disabled Employees)

November 2011 Webcast Slides

February 14, 2013 – Webinar on Member Information Profile Mailings – Nortel CCAA Update

On November 9, 2010, the Ontario Superior Court of Justice granted the Monitor’s motion with respect to the proposed methodology for the allocation of the corpus of Nortel’s Health and Welfare Trust. To view a copy of the decision, please click here.

Relevant documents relating to the HWT Allocation Methodology include:

Nortel Health and Welfare Trust: Illustrative Allocation Scenarios

Draft Health and Welfare Trust Allocation Order

Mercer Valuation of the Obligations of the Non-Pension Benefits as at December 31, 2010

Nortel Beneficiary Statement

Relevé de la somme estimative attribuée au bénéficaire

Fiducie de santé et de bien-être de Nortel

Starting in January 2011, distributions were made from the Health and Welfare Trust based on the Court-approved HWT Allocation Methodology.  The distributions included the following:

On December 2, 2013, the Monitor posted a Notice of Declared Distribution (“Notice”) on its website. The Notice is posted in accordance with an order of Justice Morawetz of the Ontario Superior Court of Justice dated November 19, 2013, which can be accessed here.

The Notice provides information regarding the HWT distribution and can be accessed here.

To date, through the series of interim distributions, the Income Beneficiaries and LTD Beneficiaries have received 35% of the value of their Income Benefits, LTD Life and LTD Option Life Benefits. Interim distributions made to date on account of Pensioner Life have represented 20% of the Pensioner Life amount determined using the Compensation Claim Methodology.

The November 19, 2013 approval of the HWT distribution to Participating Beneficiaries now brings the total distribution to 38% of Participating Benefits, subject to individual adjustments for methodology and any data corrections. For Pensioners, the total distribution also takes into account a reduction for 2010 premiums paid to continue Pensioner Life coverage in 2010. Please see the Notice for further information regarding the amounts payable, which is available here.

The distribution to LTD and Survivors was paid on December 6, 2013.

The distribution on account of Pensioner Life to Pensioners  was paid on March 28, 2014.

Distributions other than those on account of LTD Income were considered to be taxable and subject to withholding of applicable taxes at source. Koskie Minsky is appealing the taxability of these amounts. For more information please visit the Nortel Tax Appeal information by clicking here.