Nortel Networks Corporation – 85
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 – firstname.lastname@example.org
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.