Welcome to Nortel Pensions UK
The pension resource for former employees of Nortel Networks UK Limited and other acquired companies
Additional Benefits – Progress Update
The legal proceedings, referred to in our December 2020 Update below, are still ongoing. However, to the extent that our current assets can be allocated, we have sent a letter dated 22 February 2021 to all eligible members regarding our intended distribution later this year. If you do not receive such a letter, but have received previous letters about additional funds, then please contact the Plan administrators on 01707 607601.
Tax Planning – 2020/21 Tax Year
As we mention in the December 2020 Update below, we are not in a position to give any indication of when we might be able to distribute additional funds to members.
However, we can assure members that this will NOT happen in the current 2020/21 tax year.
Additional Benefits – December 2020 Update
Earlier this year, we sent a letter to eligible members explaining how additional funds being received by the Plan from the ongoing Nortel insolvency processes would be used to secure additional member benefits. In this letter, we conveyed our expectation that these additional benefits would be put in place during 2020.
We sent an update letter to all members in September 2020. If you have not received this and have previously received letters about additional funds then please contact the Plan administrators on 01707 607601. The update letter explains that, due to delays in the insolvency processes and, more significantly, a recent High Court Judgment, it is (now) clear that we will NOT be able to secure additional pension for members during 2020 or pay the cash lump sum options (where selected by eligible members) during 2020.
We understand that any delay in the distribution of additional Plan assets is disappointing news. We will continue to monitor developments in the legal proceedings and will work towards distributing additional funds when this becomes possible. Further updates will be provided as and when we are able to do so.
Please note that no further information is currently available at this time from the Plan’s administrator so please continue to check this website for the latest announcements.
Recoveries now finalised ……
We have now received all recoveries in respect of the global Nortel insolvency processes. When we first joined this process way back in 2009 our objective was to maximise the Plan’s share of available Nortel assets. The principal objective set out in our 2010 Update Letter was to secure better benefits than the minimum level guaranteed by the PPF. The same letter warned that concluding recovery proceedings might take more than another 12 months!
We are now delighted to report that the total recoveries from all sources are almost £1.27 Billion – a figure that would have been considered extremely optimistic in 2009.
Do check out The Nortel Story which gives details of the recovery process and the invaluable contribution made by our legal and financial advisers both in the UK and North America.
What does this mean going forward? We now know exactly where we stand in terms of funds available in our bank account without having to take a view about the amount and timing of further recoveries. Hence, it should be ‘full steam ahead’ to make further distributions to eligible members.
Unfortunately, as explained in the ‘Additional Benefits – December 2020 Update’ above and in a letter to eligible members dated 9 September 2020, the ongoing legal procedures could change the way in which we are required to allocate available funds. Our legal team are working hard to monitor developments in the legal proceedings with a view to distributing additional funds when this becomes possible.
November 16 2020
Administration changes – March 2020
Since the Plan left PPF assessment in October 2018, Willis Towers Watson (WTW) have been providing transitional administration services on behalf of Legal & General (L&G) to all members who had a policy secured with L&G.
This transitional arrangement is now ending, and administration of these policies will pass from WTW to L&G on March 1, 2020. L&G are sending a letter to all policyholders to formally advise them of the new arrangements.
This means that the contact point for any questions you may have may be different from March onwards depending on the nature of your query:
- If you have any question about your ongoing or future pension with L&G (e.g. change of address/bank details, change of beneficiary or notification of a death) or do not receive the letter referred to above then you should contact L&G on 0345 766 0813.
- If you have a question about the additional pension benefits referred to in the Member update below then you should contact WTW on 01707 607601 who will still be providing administration services to the Trustee.
- If you do not have a policy with L&G or are still unsure who to contact then you can call WTW for further guidance.
The Plan has left PPF assessment…
On October 8, 2018 the Plan left PPF assessment and members’ Plan benefits have now been secured in a number of different ways.
The benefits for most members who were already in receipt of a pension (together with some new pensioners) were secured with our chosen insurer, Legal & General, who became legally responsible for paying these pensions from November 1, 2018 onwards. The final monthly payment from the Plan was made on October 1, 2018 and some existing pensioners also received a one-off back payment arising from restrictions during PPF assessment.
Legal & General also assumed responsibility for most deferred members for whom a future pension has been secured.
A number of members (including some dependants) who had small pension benefits elected to receive a one-off lump sum payment instead of an ongoing pension.
Finally, a number of members who were not in receipt of a pension elected to transfer their Share of the Funds to approved alternative pension providers.
Members were sent a ‘discharge’ letter setting out details of amounts and how his/her pension benefits were secured. In March 2019, Legal & General sent a policy document to each member who had an ongoing or future pension secured with them.