Benefits Overview

Important:  Pursuant to the terms of the settlement agreements with the Retiree Committee and LTD Committee (the “Settlement Agreements”) and the bankruptcy court’s orders approving the Settlement Agreements, the U.S. Debtors have terminated the Retiree Welfare Plans and the LTD Plans, as defined under the Settlement Agreements, in their entirety and have discontinued the provision of benefits thereunder as of June 30, 2013.  The information on this site is available solely for purposes of filing claims for the payment or reimbursement of benefits incurred under the Retiree Welfare Plans and the LTD Plans prior to June 30, 2013 in accordance with and subject to the terms of the relevant benefit plans and the Settlement Agreements.  For more information on the Settlement Agreements, please visit the site for “Former Employees.”

Important:  Pursuant to the bankruptcy court’s order approving the Joint Motion Pursuant to Sections 363 and 105 of the Bankruptcy Code, and Bankruptcy Rules 9019 and 7023 to (I)(a) Preliminarily Approve the Settlement Agreement Regarding Long-Term Disability Plans and Claims, (b) Conditionally Certify a Class for Settlement Purposes Only, (c) Approve the Notice Procedures, and (d) Schedule a Fairness Hearing; and (II)(a) Finally Approve the Settlement Agreement, (b) Finally Certify a Class, (c) Authorize the Debtors to Terminate the LTD Plans, and (d) Grant Related Relief (the “Joint Motion”), the U.S. Debtors terminated the LTD Plans, as defined in the Joint Motion, in their entirety and have discontinued the provision of benefits thereunder, as well as the continuation of coverage through COBRA, as of June 30, 2013.  Please note that the final order approving the relief sought in the Joint Motion is binding on all individuals who were receiving or were eligible to receive benefits under the LTD Plans, including the U.S. Debtors’ COBRA participants.  The information on this site is available solely for purposes of filing claims for the payment or reimbursement of benefits incurred under the Retiree Welfare Plans and the LTD Plans prior to June 30, 2013 in accordance with and subject to the terms of the relevant benefit plans and the Settlement Agreements.  For more information on the Settlement Agreements, please visit the site for “Former Employees.”

How Benefits Work at Nortel

Once you have become a full-time or part-time employee of Nortel regularly scheduled to work 20 or more hours per week, you automatically receive coverage for core benefits-which are fully paid by Nortel. You cannot opt out of core coverage. In addition, you can choose to enroll for optional benefits that provide higher levels of coverage than your core benefits. In most cases, you’ll share the cost of these optional benefits with Nortel.

Core Benefits Optional Benefits
Nortel automatically provides you with these benefits at no cost to you You can enroll in these benefits and either share the cost with Nortel or pay for them on your own.
  • Employee life insurance equal to one times your Benefits Earnings, up to $1 million.
  • Short-term disability (STD) coverage equal to 100% of your pre-disability Benefits Earnings for 6 weeks, then 66-2/3% of your pre-disability Benefits Earnings for an additional 20 weeks.
  • Long-term disability (LTD) coverage equal to 50% of your pre-disability Benefits Earnings up to a maximum monthly benefit of $5000 after you’ve been on STD for 26 weeks. (Applies only to employees actively at work on 1/1/2011 who may be eligible).
  • The Employee Assistance Program (EAP), which provides free and confidential short-term counseling and work-life services.
  • Medical coverage.
  • Dental/vision/hearing care coverage-this is bundled coverage; if you enroll, you’ll receive coverage for all three.
  • Additional employee and dependent life insurance.
  • Employee and dependent accidental death and dismemberment (AD&D) insurance.

Paying for Benefits

Nortel pays the full cost of your core benefits and subsidizes the cost of your medical and dental/vision/hearing care benefits. In addition, Nortel provides you with Benefits Credits that you can use toward the purchase of optional medical benefits. See your enrollment worksheet for your 2013 benefits prices.

  • If your benefits choices cost more than your Benefits Credits: You’ll pay the difference either with before-tax or after-tax dollars through payroll deductions, depending on the benefit.
  • If your benefits choices cost less than your Benefits Credits: You will receive them as additional taxable pay throughout the year.

Medical Benefits and the Employee Assistance Program (EAP)

Your Nortel medical option covers many health care expenses, including hospitalization, physicians’ and specialists’ services, and diagnostic tests and procedures.

Nortel offers the following medical options:

  • If you live in a network area:
    • No coverage
    • The 80/60 Preferred Provider organization (PPO) option, offered through Anthem or CIGNA HealthCare
    • The 90/70 PPO option, offered through Anthem or CIGNA HealthCare.
  • If you live in a non-network area:
    • No coverage
    • The Out-of-Area Comprehensive option, offered through CIGNA HealthCare

The PPO and Comprehensive options cover the same services; however, the level of medical coverage and your out-of-pocket costs for medical care may vary depending on the option.

Under the PPO and Comprehensive options, prescription drug benefits are provided through Medco Health Solutions, and mental health and substance abuse treatment benefits are provided through OptumHealth Behavioral Solutions.

When you enroll, you can choose from four coverage levels:

  • You only
  • You and your spouse/domestic partner
  • You and your children and/or your domestic partner’s children
  • You and your family (spouse/domestic partner, your children, and/or your domestic partner’s children)

You can choose different coverage levels for your medical option and your dental/vision/hearing care option. For example, you can choose medical coverage for you and your family and dental/vision/hearing care coverage for just you and your spouse.

Important Note: Don’t Let the Spousal/Domestic Partner Access Fee Catch You by Surprise

Remember, you’ll be charged the $50 spousal/domestic partner access fee each pay period in 2013 if you choose to cover your spouse/domestic partner under your Nortel medical plan and he or she has medical coverage available though his or her employer. If your covered spouse/domestic partner doesn’t have access to employer-provided medical coverage elsewhere, you won’t have to pay the access fee if you recertify to this fact during this fall’s Annual Enrollment.

Just like last year, you will have to recertify that your spouse/domestic partner does not have access to other employer-provided medical coverage each year when you enroll or continue to enroll him or her for Nortel medical coverage. Otherwise, you’ll automatically be charged the $50 spousal/domestic partner access fee each pay period in 2013 unless you experience a qualified status change. Go to http://www.nortel-us.com/current/benefits/ and click on “Explore Plans/Services” to view the Affidavit of Status Change under Forms.

Planning to Retire in 2013?

If you plan to retire in 2013, you must be actively enrolled in a Nortel Medical Plan immediately before retirement to be eligible for the Nortel Retiree Medical Plan when you retire. For other retiree medical plan eligibility requirements, see the Nortel Networks Retiree Medical Plan Summary Plan Description (SPD), which can be found at http://www.nortel-us.com/current/benefits/ under “Explore Plans and Services”.  For additional questions or to initiate enrollment in the Nortel Retiree Medical Plan, please call HR Shared Services toll-free at 1-800-676-4636.

Remember the EAP

In addition, you and your eligible dependents automatically are eligible for the Employee Assistance Program (EAP), which is provided by OptumHealth Behavioral Solutions. You don’t have to enroll, and the EAP is available at no cost. The EAP provides confidential, expert counseling; referrals for child/elder care, legal/financial assistance, education, and other work-life services; and information on a range of work-life issues that may affect your health and well-being.

Consider This—Health Benefits

  • As you compare how you used your 2012 health benefits with your current and anticipated needs, look at what you paid in out-of-pocket costs vs. what you paid for coverage out of your paycheck.
    • If you paid for a high level of coverage but didn’t incur a lot of out-of-pocket costs, you may want to think about buying a lower level of coverage for 2013.
    • On the other hand, if you elected a lower level of medical coverage for 2012 and ended up paying more out of pocket, you may want to elect a higher level of coverage for 2013.
  • Is other health coverage available to you? If your spouse/domestic partner works, check out any health benefits coverage offered by your spouse/domestic partner’s employer to see if you, your spouse/domestic partner, and/or your children should enroll in your spouse/domestic partner’s coverage rather than Nortel’s.

Look to Your Health Plan for Additional Support

Anthem and CIGNA both offer programs to help you and your family manage your health. These confidential, voluntary health management programs are available to you (if you’re under age 65) and your eligible dependents at no cost. Offerings include:

  • Toll-free numbers where you can talk with a registered nurse 24/7 and access pre-recorded health information.
    • Anthem: 1-877-5NORTEL (566-7835)
    • CIGNA: 1-800-257-2702
  • Web siteswhere you can find health information, use online health tools, send an e-mail to a nurse, link to other health Web sites, and more. You’ll need to register to take advantage of all the sites have to offer.

Dental, Vision, and Hearing Care Benefits

Nortel offers two dental/vision/hearing care options that cover a range of services:

  • Comprehensive
  • Plus

You can choose any option you wish, regardless of which medical option you choose. Dental, vision and hearing care are bundled together, so if you enroll for coverage, you’ll receive coverage for all three as a package. Keep in mind that there is only one vision plan—the Select option—so your vision coverage is the same whether you choose the Comprehensive or Plus dental/vision/hearing care option.

When you enroll, you can choose from four coverage levels:

  • You only
  • You and your spouse/domestic partner
  • You and your children and/or your domestic partner’s children
  • You and your family (spouse/domestic partner, your children, and/or your domestic partner’s children)

Remember, you can choose different coverage levels for your medical option and your dental/ vision/hearing care option. For example, you can choose medical coverage for you and your family and dental/vision/hearing care coverage for only you and your spouse.

Dental and hearing care benefits are provided through CIGNA HealthCare. Vision care benefits are provided through EyeMed Vision Care.

Short-Term Disability (STD)

STD benefits are intended to replace a portion of your income if you’re totally disabled for five consecutive days (or the equivalent of your standard workweek) due to an approved, documented illness or injury. STD benefits are payable for up to 26 weeks of absence.

Long-Term Disability (LTD)

Employees whose leaves began in 2010 or before will continue on the previous LTD self-insured plan until the benefit ends or the plan is terminated. Please refer to the STD and LTD SPD at http://www.nortel-us.com/current/benefits/ under “Explore Plans and Services” for additional information about when the benefit may end or the plan terminated.

Effective 1/1/2011, employees actively at work in 2013 who begin an STD in 2013 and are unable to return to work after exhausting 180 days of STD may be eligible for a fully-insured LTD plan administered by Metlife. Nortel provides this LTD coverage at no cost to you. If eligible, you will receive coverage equal to 50% of your pre-disability benefit earnings up to a maximum monthly benefit of $5000.

Life Insurance

Life insurance helps protect your family’s finances in the event of your death. In addition to receiving Nortel-paid core life insurance coverage, you can supplement your coverage as follows:

Optional Employee Life Insurance
Choose from additional available coverage options of one to five times your annual Benefits Earnings, rounded up to the next $1,000 increment, up to a maximum of $3 million of core and optional life insurance combined. Evidence of insurability (EOI) application and approval are required for coverage levels of four and five times your Benefits Earnings. The EOI application is also required if you want to increase the amount of your current optional employee life insurance during annual enrollment.

Optional Spousal/Domestic Partner Life Insurance
Choose optional coverage equal to $10,000, $25,000, $50,000, $75,000, or $100,000. EOI is required for any increases in spousal/domestic partner life insurance if the coverage amount will be over $25,000.

Optional Children’s Life Insurance
Choose optional coverage of $5,000, $10,000, or $15,000 for each eligible dependent child. EOI is not required for this coverage.

You’ll pay for optional life insurance coverage with after-tax payroll deductions. Coverage for both core and optional life insurance coverage is provided through Prudential.

Important Reminder

Optional life insurance rates for you are based on gender, current age and “smoker status.” You’re eligible for the non-smoker rate if you haven’t smoked or used a tobacco product for 12 continuous months. Nortel doesn’t require proof of your non-smoking status, but if you are found to be a smoker and are paying non-smoker rates, your beneficiary may be denied payment of life insurance benefits.

Consider This—Life Insurance Benefits

  • Do you have dependents who rely on your income? If so, how much will they need to meet future expenses if you were to die?
  • Do you have other long-term debts that need to be paid?
  • Do you have any personal life insurance policies outside of Nortel? If you have a mortgage, do you have mortgage insurance?
  • Do you have other significant assets or sources of income that your dependents can count on if you were to die?
  • How’s your health? If you want to increase your life insurance coverage, you’ll need to provide EOI, and your increased coverage won’t take effect until the date Prudential approves your application.

Additional Benefits

Optional AD&D Insurance
Optional accidental death and dismemberment (AD&D) insurance provides coverage in the event of accidental death or loss of a limb, sight, hearing or speech. AD&D insurance is provided through Prudential.

You can choose to enroll in optional AD&D insurance coverage, as follows:

  • Optional AD&D Insurance (employee only). Choose optional coverage for yourself of one to five times your annual Benefits Earnings, rounded up to the next $1,000 increment, up to a maximum of $1 million or 5X Benefits Earnings, if less.
  • Optional AD&D Insurance (employee and family).Choose optional coverage for yourself of one to five times your annual Benefits Earnings, rounded up to the next $1,000 increment, up to a maximum of $1 million or 5X Benefits Earnings, if less. The amount that will be paid if one or more of your family members were to die is as follows:
    • If you have a spouse/domestic partner only: 60% of your optional AD&D coverage amount.
    • If you have a spouse/domestic partner and dependent children: 50% of your optional AD&D coverage amount for your spouse/domestic partner and 15% of your optional AD&D coverage amount for each child.
    • If you have dependent children only: 20% of your optional AD&D coverage amount for each child.

You pay the entire cost of any optional AD&D insurance you choose to purchase; Nortel doesn’t contribute to the cost. You’ll pay for optional AD&D insurance coverage with Benefits Credits and/or after-tax payroll deductions.

Learn More

Additional information about each benefit area is available: