Nortel Networks Corp. (NRTLQ.OB) announced that it, Nortel Networks Limited and their Canadian subsidiaries that have filed for creditor protection under CCAA have reached an agreement on certain employment related matters.
These related matters are regarding former Canadian Nortel employees, including Nortel's Canadian registered pension plans and benefits for Canadian pensioners and Nortel employees on long term disability or LTD, the company said.
The Settlement Agreement provides that Nortel will continue to administer the Nortel Networks Negotiated Pension Plan and the Nortel Networks Limited Managerial and Non-Negotiated Pension Plan until September 30, 2010, at which point these pension plans will be transitioned, in accordance with the Ontario Pension Benefits Act, to a new administrator appointed by the Superintendent of Financial Services, the company said.
Nortel and the Monitor will take all reasonable steps to complete the transfer of the administration of the pension plans to the new administrator.
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