Since we began the 2012 membership drive last October, over half of our members have renewed their membership for 2012. But time is running out. 2011 memberships expire at the end of March 2012, so it is important that you make your payment ASAP to avoid losing your membership benefits including regular newsletters and website access. This year will be a pivotal year for the former employees of Nortel and your membership is crucial since membership fees are our only source of funding to keep this volunteer organization running and to establish our Special Action Fund suitable for any future litigation that we may need to undertake on your behalf.

    There is political strength in numbers, so please encourage any of your former Nortel colleagues who have not yet joined to do so.  We need to continue to press our issues with the federal and provincial politicians and in the mediation process between the UK, US and Canada for the distribution of Nortel's assets.

You can check the status of your membership by logging on to this website and then clicking the "My Subscription" command that will appear in the bottom left side of the screen under "User Menu".  Clicking the "Upgrade/Renew" button on the My Membership status page will then take you to the Annual Membership page where you can then click the PayPal or Offline payment options.

This revised message is being sent to correct an inaccuracy that was contained in the first paragraph of the message you received previously, and also to provide an important clarification about the method of payment for some individuals.  

Important Clarification:  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.   

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

In November 2010, the Court approved a methodology for the allocation of the assets held in Nortel’s Health and Welfare Trust (HWT). In accordance with the court-approved methodology, pensioner Life Insurance (LIFE), LTD Life, LTD Optional Life and the Survivor and LTD Income Benefits will share in the assets of the HWT on a pro rata basis.  A small group of LTD employees challenged that decision and it was not until June 2011 that the challenge was dismissed by the Supreme Court of Canada making the way clear for a distribution for Pensioner LIFE.

Because of the August 2011 cutbacks in pensioner payments, the NRPC pushed for a year end payout for pensioners from the HWT. The first instalment from the assets of the HWT is now being mailed by E&Y as a cheque. We expect the bulk of these mailings (over 8,100 cheques) to happen this week, but some 600 are awaiting clearance and may take until December 16^th 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 on your Form A (in the claims package recently mailed to you by E&Y), you have an amount beside the line: “Pensioner Life (including ADB, if applicable)”, you should shortly be receiving a cheque for 20% of that 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 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 (2012/13/1?).

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.

Regards,

Communications Department
Koskie Minsky LLP