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
1st Dividend FST holdback
+ 2nd Dividend
|Monthly in-Pay||Increase1 + Retro-payment2||Jan 2020||Jan 2020|
|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
|All non-Ontario Monthly in-Pay||Increase1 + Retro-payment2||Sep 2020
(Sun Life or RQ)
(BMO or RQ)
|Bank Forms Mailed||??||Aug 2019|
|Transfers as Forms Received Starting:||Sep 2020||Jan 2020|
Multi-jurisdiction and Pooled Prov.
|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