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Nortel Networks Inc., et al. (Committee of Retired Employees)
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Welcome to the Information Website of the Official Committee of Retired Employees of Nortel Networks, Inc., et al.
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**May 3, 2013 Update: Certificates of Group Health Plan Coverage and HRA Accounts**
By now, all Nortel Retirees who were participants under the Nortel Networks Inc. Retiree Medical Plan as of January 31, 2013 should have received a Certificate of Group Health Plan Coverage. This Certificate will be necessary for obtaining alternative insurance coverage given that Nortel will terminate the Retiree Welfare Plans and all coverage and benefits thereunder at 11:59 pm on June 30, 2013.
The VEBA HRA accounts are expected to go live on July 1, 2013, and they can be used for claims for eligible medical expenses that are incurred on or after July 1, 2013. Any claims incurred prior to July 1 should be processed as they normally would be processed under the Nortel Retiree Welfare Plans provided that they are submitted not later than the 60th day after June 30, 2013. You can expect to receive an information package with instructions from the HRA provider later this month or during early June concerning access to and use of HRA accounts.
**April 18, 2013 Update: Election Forms for LTD & COBRA Plan Participants**
The Debtors have mailed election forms to LTD & COBRA plan participants for use pursuant to section 8(a) of the Retiree Settlement Agreement.
The Debtors and the Retiree Committee reserve the right to deny participation in the Retiree Settlement Agreement if it is determined that an electing individual has not satisfied the eligibility criteria set forth in section 8(a) of the Retiree Settlement Agreement.
To access the LTD Retirement Election Form click here.
To access the COBRA Election Form click here.
**April 9, 2013 Update: Certificates of Creditable Coverage and Termination Notices**
The Retiree Committee is working with Nortel to coordinate the mailing of the Certificates of Creditable Coverage and Termination Notices that retirees will need when procuring alternative insurance coverage. The Retiree Committee has asked Nortel to send those notices to you prior to the June 30, 2013 termination date.
We will mail revised and final Individual Claim Forms from the Retiree Committee on or about June 1, 2013.
**April 3, 2013 Update: Bankruptcy Court Approves Retiree Committee Settlement Agreement**
On April 2, 2013, the Bankruptcy Court entered an Order Approving the Settlement Agreement between Nortel and the Retiree Committee.
You can access that Order by clicking here.
NORTEL ALSO AGREED TO EXTEND THE TERMINATION DATE OF THE RETIREE WELFARE PLANS TO JUNE 30, 2013. You can access the notice confirming this extension by clicking here.
This means that Nortel will terminate the Nortel Retiree Welfare Plans, and all benefits and coverage provided thereunder, on June 30, 2013 at 11:59 pm (prevailing Eastern Time). Settlement amounts will be funded to HRA accounts in favor of eligible participants under the Settlement Agreement.
**March 19, 2013 Update: Results of Ballot Concerning VEBA Medical Plan**
Pursuant to the Ballot that was approved and authorized by the Bankruptcy Court, the VEBA would be authorized to purchase the VEBA Sponsored Medical Plan only if the Election Threshold was met. Pursuant to the Notice Procedures Order and the Ballot, the Election Threshold could be met if: (a) at least 50% of the number of Eligible Participants voted in favor of offering the VEBA Sponsored Medical Plan, and (b) Eligible Participants entitled to at least two-thirds of the Medical Settlement Amount voted in favor of offering the VEBA Sponsored Medical Plan. Ballots not received by KCC on or before March 12, 2013 at 4pm EST are counted as a vote against the VEBA Sponsored Medical Plan.
The Certification of the Retiree Committee's Noticing Agent with Respect to the Tabulation of Ballots has been filed with the Bankruptcy Court and can be accessed by clicking here.
Based on the tabulation of voting results, the Election Threshold was not met and the VEBA Sponsored Medical Plan WILL NOT BE OFFERED.
If the Settlement Agreement between Nortel and the Retiree Committee is approved by the Bankruptcy Court, Nortel will terminate all benefits under the Nortel Retiree Welfare Plans on May 31, 2013 at 11:59 pm (prevailing Eastern Time), and settlement amounts will be funded to HRA accounts in favor of eligible participants under the Settlement Agreement.
** Information Resources Concerning Medicare and The Affordable Care Act**
During the Raleigh, North Carolina town hall meeting, retirees asked about information resources for assistance in understanding Medicare options and the impacts of the Affordable Care Act. While the Retiree Committee does not endorse any particular resource, the following may be of assistance:
To access Healthcare.gov – Main Search page, click here.
To access Healthcare.gov – Need Insurance Options, click here.
To access Healthcare.gov – Find Insurance Options, click here.
**February 22, 2013 Update**
**Information Concerning HRA Accounts and What Constitutes Eligible Medical Expenses**
An HRA is a benefit plan that reimburses employees, or retirees for qualified medical expenses incurred by such individuals and their eligible dependents. Participating individuals are generally not taxed on reimbursements for eligible medical expenses received from an HRA. Typically, an HRA is used to pay insurance premiums or deductibles, copays and other eligible expenses not covered by insurance.
Expenses that may be reimbursed from an HRA generally include the following:
1) Costs of diagnosis, cure, mitigation, treatment, or prevention of disease, and costs for treatments affecting any part or function of the body, including:
a) costs of medical services rendered by physicians, surgeons, dentists, and other medical practitioners;
b) costs of equipment, supplies, and diagnostic devices needed for the medical care (such as crutches, dentures, blood sugar test kit, eyeglasses, wheelchair, hearing aid); and
c) costs of prescribed drugs (although insulin need not be prescribed);
2) Amounts paid for transportation to obtain eligible medical care;
3) Costs of medical insurance premiums; and
4) Cost of long-term care insurance premiums, up to applicable IRS
annual limits, which are based on the individual’s age.
**February 7, 2013 Update - Years of Service**
Retirees have inquired about the years of service listed in their individual claim forms.
Retirees' welfare benefits are calculated based on the retirees' years of service, not years of employment. Under the Nortel Retiree Medical Plan, years of service begin to accrue at age 40 unless the retiree was granted special "grandfathered" status. "Grandfathered" employees' years of service are calculated from their initial employment by Nortel or certain companies that Nortel acquired. For the vast majority of retirees, if you were at least age 50 and had at least one year of service as of April 30, 2000, and elected to remain in the Traditional Plan, you are "Grandfathered." Nortel's Retiree Medical Plan Summary Plan Descriptions provide additional relevant information.
**January 23, 2013 Update**
On January 23, 2013, the Bankruptcy Court entered an order approving Nortel's Motion Approving Forms and Methods of Notice of Hearing to Consider the Settlement Agreement with the Retiree Committee [Docket No. 9324] .
The hearing to consider approval of the Settlement Agreement is scheduled for April 2, 2013.
You will receive notice of the proposed Settlement Agreement from Nortel shortly. Subsequently, and separately, you will receive notice and additional information from the Retiree Committee.
**January 18, 2013 Update**
On January 18, 2013, in connection with the filing of Nortel's Motion for Entry of Orders (A) Approving Settlement Notification Procedures And, Subsequently, (B) Approving a Settlement Agreement with the Official Committee of Retired Employees [Docket No. 9224] (the "Notice Procedures Motion"), the Bankruptcy Court entered an Amended Scheduling Order [Docket No. 9297] suspending the document discovery deadlines regarding Nortel's prior Termination Motion, which was filed on July 30, 2012 [Docket No. 8066].
Upon approval of the Notice Procedures Motion, the Official Committee of Retired Employees will post an update to this website regarding applicable deadlines concerning the Motion for Entry of Order Approving a Settlement Agreement with the Official Committee of Retired Employees.
** December 19, 2012 Update **
Motion to Terminate Update: On December 19, 2012, the Bankruptcy Court entered an Amended Scheduling Order [Docket No. 9155] which (i) extends the document discovery deadline regarding the Termination Motion to January 18, 2013, and (ii) extends to and including February 5, 2013 as the date for any party wishing to oppose the entry of an order approving the Termination Motion to file a written response or objection with the Clerk of the United States Bankruptcy Court for the District of Delaware, 824 Market Street, 3rd Floor, Wilmington, Delaware 19801.
Additionally, the deadlines that had not already occurred in the August 30, 2012 Scheduling Order [Docket No. 8365] are suspended.
As a result of the revised schedule, the U.S. Nortel Debtors will not be able to terminate retiree welfare benefits until the earlier of (i) the completion of a trial on the Termination Motion, or (ii) the approval of a settlement to resolve the Termination Motion.
The Retiree Committee and the Nortel Debtors will continue confidential negotiations under the supervision of a Court-appointed mediator [Docket No. 7560].
2013 Open Enrollment Update: The U.S. Nortel Debtors have advised the Retiree Committee that retiree benefits enrollment for 2013 commenced the first week of November. Questions concerning the 2013 retiree benefits enrollment process should be directed to the Nortel HR Shared Services call center at (direct): 919-905-9351 or (toll-free): 1-800-676-4636.
** November 28, 2012 Update **
Motion to Terminate Update: On November 28, 2012, the Bankruptcy Court entered an Amended Scheduling Order [Docket No. 9026] which (i) extends the document discovery deadline regarding the Termination Motion to December 19, 2012, and (ii) extends to and including January 11, 2013 as the date for any party wishing to oppose the entry of an order approving the Termination Motion to file a written response or objection with the Clerk of the United States Bankruptcy Court for the District of Delaware, 824 Market Street, 3rd Floor, Wilmington, Delaware 19801.
Additionally, the deadlines that had not already occurred in the August 30, 2012 Scheduling Order [Docket No. 8365] are suspended.
As a result of the revised schedule, the U.S. Nortel Debtors will not be able to terminate retiree welfare benefits until the earlier of (i) the completion of a trial on the Termination Motion, or (ii) the approval of a settlement to resolve the Termination Motion.
The Retiree Committee and the Nortel Debtors will continue confidential negotiations under the supervision of a Court-appointed mediator [Docket No. 7560].
2013 Open Enrollment Update: The U.S. Nortel Debtors have advised the Retiree Committee that retiree benefits enrollment for 2013 will commence the first week of November. Questions concerning the 2013 retiree benefits enrollment process should be directed to the Nortel HR Shared Services call center at (direct): 919-905-9351 or (toll-free): 1-800-676-4636.
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Main Debtor: Nortel Networks, Inc. - Case No. 09-10138 (KG) |
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Filing Date: January 14, 2009 |
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Judge: The Honorable Kevin Gross |
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Debtors' Bankruptcy Information Webpage: Please click here to view the Debtors' case-specific webpage. |
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Unsecured Creditors Committee Webpage: Please click here to view the Unsecured Creditors Committee's case-specific website. |
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Long Term Disability Committee Webpage: Please click here to view the Long Term Disability Plan Participants Committee's case-specific website. |
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Canadian Monitor: Ernst & Young LLP |
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U.K. Administrator: Allen Bloom and Stephen Harris, Ernst & Young LLP
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FOR ADDITIONAL INFORMATION,
PLEASE CONTACT THE RETIREE HOTLINE AT THE TOLL FREE NUMBER AT (877) 634-7178 |
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Note:
Kurtzman Carson Consultants LLC ("KCC") maintains this website for the Official Committee of Retired Employees. KCC maintains this website for the public's convenience and, while KCC makes every attempt to assure the accuracy of the information contained herein, this website is not the website of the United States Bankruptcy Court and does not contain the complete, official record of the Bankruptcy Court. All documents filed with the Court are available for inspection at the United States Bankruptcy Court for the District of Delaware.
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