Nortel Pensioners Awaits Good News

The news has been favorable to the ears of the Nortel pensioners since they will be the one benefited once the changes will become effective. Along with this news, a working group was launched to study pensions was led by the Liberal Party. The said reforms were expected to be announced this Tuesday by Jim Flaherty, the minister of the Federal Finance.

Nortel retirees will surely be delighted with the upcoming announcement. In fact, according to the representative of the Nortel retirees Mr. Don Sproule who is currently the national chairman of the group, politicians finally seen to be listening. In addition, he implied in his statements that what people seem to think about the re-emergence of Nortel is now improbable because of the posing bankruptcy of the company. He also stated that the people now understand the implications to the people who are owed money from the Nortel state which includes the pensioners.

Ever since bankruptcy protection was filed by Nortel in January where their units have been sold piece by piece, the government has been regularly visited by Nortel retirees. Of course, these pensioners are worrying about the loss of some of their pensions once Nortel stops operating. As a result, they will become unsecured creditors of the company where they have to wait with uncertainty for their pension, in case Nortel becomes totally bankrupt.

At the end of the day, Sproule finally acknowledged that pension from Nortel is the responsibility of the province and that the part of the pension plans being regulated by federal government is only about 10%.