2013 Annual Enrollment
To get the most out of Nortel’s benefits and our online resources, you need to take action. It’s up to you to evaluate your options and choose the benefits that make the best sense for you and your family. The external www.nortel-us.com/current/ site contains resources and tools to help you understand your benefits choices and make the right decisions and get answers 24/7.
A few reminders:
- If you do not enroll, most of your 2012 selections will be the default for 2013. There is one exception:
- If you elect to cover a spouse/domestic partner under the medical plan, you will automatically be charged the $50 per-pay-period spousal/domestic partner access fee in 2013, unless you certify or recertify before November 21, that your enrolled spouse/domestic partner doesn’t have access to other employer-provided medical coverage. Per plan rules, you must recertify before each new plan year. The spousal/domestic partner certification can be found on the enrollment form mailed to employees.
- Because of the current situation at Nortel, the choices you’ve made in previous years may no longer be best for you. www.nortel-us.com/current/ contains information to help you choose the right plans.
- You may also want to start now to explore potential alternatives, as some spousal plans may not allow transfers or changes during a plan year.
Changes to the benefit Plans for 2013 are summarized below:
- The CIGNA Well Aware Disease Management Program is being phased out as of December 31, 2012. Please note that participants will not receive any additional coaching calls under this program after December 31, 2012.
- All other plan provisions and premiums will remain the same.
On July 30, 2012, the Debtors filed the Motion for Entry of an Order Pursuant to 11 U.S.C. §§ 105, 363 and 1108 Authorizing the Debtors to Terminate the Debtors’ Long-Term Disability Plans and the Employment of the LTD Employees [D.I. 8067] (the “LTD Benefit Termination Motion“) in the United States Bankruptcy Court for the District of Delaware (the “Delaware Bankruptcy Court“). The LTD Benefit Termination Motion seeks approval from the Delaware Bankruptcy Court to terminate certain of the Debtors’ employee benefit plans, including those plans offering medical insurance, dental, vision and hearing insurance, life insurance, AD&D insurance and long-term disability income continuation benefits. If the LTD Benefit Termination Motion is approved, these benefit plans would be terminated with respect to all of the Debtors’ current employees and their dependents, including those receiving long-term disability benefits. Anyone receiving COBRA benefits under any of the terminated plans would also be affected.
The Debtors also filed a Motion For Entry of an Order Terminating Retiree Benefits and Approving a Settlement Proposal Pursuant to 11 U.S.C. § 1114 [D.I. 8066] (the “Retiree Benefit Termination Motion” and, together with the LTD Benefit Termination Motion, the “Motions“) in the Delaware Bankruptcy Court on July 30, 2012. The Retiree Benefit Termination Motion requests that the Delaware Bankruptcy Court authorize the termination of certain retiree benefit plans, including those plans providing medical insurance, life insurance and long-term care insurance. The rights of all current and prospective retirees to receive such benefits would be affected if the Retiree Benefit Termination Motion is approved.
The Delaware Bankruptcy Court will hold hearings on the Motions prior to authorizing the Debtors to take any action with respect to the relevant benefit plans. The hearings have not taken place yet. Additional information about the Motions and the related hearings is available at http://chapter11.epiqsystems.com/nortel.
For retirees, learn about your benefits in the Retiree Annual Enrollment Guide.