What's happening to the Nortel Networks UK Pension Plan?

julesjpg

Just to let people know that the FAQ section of the Nortel pensions website has been updated (www.nortelpensions.com) to provide a bit more clarity on the situation.

sebastianj

I am sorry to hear the plight of Nortel employees, know the company well as a Cable & Wireless employee. I don't understand why people defer their pensions, I believe that when you start to draw your pensions then one is protected, not sure how it works though.
seb

acc

sebastianj wrote: »

I am sorry to hear the plight of Nortel employees, know the company well as a Cable & Wireless employee. I don't understand why people defer their pensions, I believe that when you start to draw your pensions then one is protected, not sure how it works though.
seb

When someone with a company pension leaves that company at an age below the normal pension age and goes to a company that does not offer the option to transfer the pension in, then the pension has to be deferred.

The Pension Protection Fund compensation for a deferred pension is only up to 90%, and is further subject to a cap, as compared with 100% for a pension that has started.

Debt_Free_Chick

acc wrote: »

When someone with a company pension leaves that company at an age below the normal pension age and goes to a company that does not offer the option to transfer the pension in, then the pension has to be deferred.

The Pension Protection Fund compensation for a deferred pension is only up to 90%, and is further subject to a cap, as compared with 100% for a pension that has started.

It's only 100% for those in receipt of a pension AND over the scheme NRA. The cap still applies if you receive your pension, but are not over the NRA. Even if you are over the NRA, it's still not necessarily 100% as the annual increases are cut back to 2.5%, whereas the scheme would have paid RPI, capped at 5% pa.

Debt_Free_Chick

sebastianj wrote: »

I believe that when you start to draw your pensions then one is protected, not sure how it works though.
seb

Click on the link on my earlier post #2

Frankdunus

I would like to know if the PPF can change the terms and conditions of the plan, under the plan rules I could take early retirement at 50 ten years before my NPA albeit with penalties, according to the PPF website they do cater for early retirement but what is the chance they will change the terms of the nortel pention contract when they take it over. They do show a calculation chart which does allow me to calculated my pension if I was allowed to go ahead at 50 but will I still be able too ?

anyone can answer this would be much appriciated

julesjpg

Has anyone received an e-mail addressed to Nortel UK pension plan beneficiaries ? It's being forwarded round to people, basically suggesting that lawyers we all contribute £100 to engage a legal firm to advise all pension groups of their status under Administration so that each can judge their best response. They would also attend the Creditors Meeting on pension holders behalf, represent us to the Trustees and Ernst and Young, as well as hosting a conference call for pension holders to run through the various options.

Has anyone else received this ? Does anyone think this is a good idea ? If anyone wants the mail I can forward on....

shop-to-drop

My hubby received a letter re Nortel Pensions today. Anyone else?

Debt_Free_Chick

julesjpg wrote: »

Has anyone received an e-mail addressed to Nortel UK pension plan beneficiaries ? It's being forwarded round to people, basically suggesting that lawyers we all contribute £100 to engage a legal firm to advise all pension groups of their status under Administration so that each can judge their best response. They would also attend the Creditors Meeting on pension holders behalf, represent us to the Trustees and Ernst and Young, as well as hosting a conference call for pension holders to run through the various options.

Has anyone else received this ? Does anyone think this is a good idea ? If anyone wants the mail I can forward on....

I don't see that you need to spend money on a lawyer - heaven knows, there are enough "protection" laws around to ensure that you get what you're entitled to plus The Pensions Regulator and the Pension Protection Fund.

The Trustees are there to act in the best interests of the members, so I don't see the need for you to be "represented".

Waste of money IMHO. Far better to keep any "fighting fund" for any disputes or legal issues that might arise - if, indeed, they do.

kestra

aye my mum got her letter too this morning