Category Nortel Pension

Nortel pensions: Why CV/LIF value is less than annuity value for Nortel’s Ontario pensioners?

 In a nutshell The bottom line is that for Ontario Nortel pensioners only, CV is calculated (as defined in the legislation and the same as for deferred pension plan beneficiaries) on windup date life expectancy and some of the CV is considered to have already been collected since windup, so it’s worth less now. Whereas […]

Annuity or Lump-Sum (LIF): Upcoming Nortel pensioners’ decision

In a nutshell In this blog I address the “annuity or lump sum?” and the  “if, when and how much  to annuitize?” questions with a discussion of the pros, cons and other qualitative considerations that go into this very personal decision. “Annuity or Lump-sum?” One could very simply just take the annuity option (“status quo […]

Nortel bondholders poised to get $1.25/dollar while pensioner might get $0.15/dollar?

In a request for political action “Immediate actions to improve your outcome in the Nortel Insolvency” the NRPC is calling on all retirees and former employees who have Canadian claims to contact Minister of Industry Paradis, their senior regional MP and their own local MP to request immediate legislative changes to  “block the vulture bond funds from getting […]

New Ontario pension windup flexibility is great but must include ‘self-administration’ option

New Ontario pension windup flexibility is great but must include ‘self-administration’ option It is wonderful to read that Ontario Finance Minister Duncan decided to broaden the available options upon pension wind-up, rather than forcing pensioners into an annuity. The Nortel pensioner group NRPC’s announcement in the context of the so called Financial Sponsorship Model-FSM (ominously) […]

Nortel Pensions-Bankruptcy

Nortel Pensions The past week was a sad and painful one not just for pensioners, but for all current and past employees of the company. Retired pensioners tend to be older and mostly out of the work-force and would likely be especially hard hit by any reduction to their pensions. For many it would be […]

Nortel seeks legal advice on exploring bankruptcy

Nortel seeks legal advice on exploring bankruptcy This is a sad day for current and ex-Nortel employees. The implication on pension plan members is difficult to determine as yet, but those who have read my earlier blogs on pensions may have a sense on the possible outcomes. A CAW note on potential pension outcomes in […]

Q&A: Take Commuted Value or “Pension”? (Laid-off from Nortel in the summer of 2009)

Q&A: Take Commuted Value or “Pension”? (Laid-off from Nortel in the summer of 2009) Q: A friend of mine was in the latest round of (Nortel) lay-offs, and is trying to decide whether to take his pension as a lump sum, or stay in the plan. Of course, in the current mess, there is no […]

Doomed Nortel Pensioners? Outside-the-box Pension Options and Path to Pension Reform

Doomed Nortel Pensioners? Outside-the-box Pension Options and Path to Pension Reform (Originally posted July 15, 2009 and retargeted to new platform March 2012) In a nutshell The pension system failed Nortel pensioners; it is now time to let pensioners control their own destiny. We are where we are and we need to generate the best […]

Too little, too late- A 50% interim CV payment would be more appropriate than the proposed 69%!

Too little, too late- A 50% interim CV payment would be more appropriate than the proposed 69%! You may have missed the story not mentioned in the title of Bert Hill’s Ottawa Citizen article “Court names Toronto law firm to represent Nortel pensioners” unless you actually read the article itself, is Nortel’s request for permission […]

Systemic Failure in Canada’s Private Pensions: Who could have prevented it? What could be done now?

Systemic Failure in Canada’s Private Pensions: Who could have prevented it? What could be done now? (Originally published April 17, 2009, and re-hosted on WordPress March 5, 2012) There has been much ink spilled already about the destruction of Nortel, Canada’s technology icon. As an almost 30 year employee of Bell-Northern Research/Nortel and now a pensioner, I […]