Nortel Networks Corporation – September 2, 2020

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

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