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.