We have the IRS ruling that confirms the NNRBT Trust will NOT be assessed taxes on the transfer of funds from Nortel to the Retiree Benefit Trust. This allows the balance of funds placed on “hold back” to be added to your Wage Works available funds balance. The Committee Chairman’s letter in the Documents tab has the details of the impact of the IRS ruling and an update on administration fees.
Greetings to our fellow Nortel retirees.
Welcome to the official website of the VEBA Committee for the NN Retirees Benefit Trust.
This website will be maintained to serve as a source of information for retirees who participated in Nortel’s retiree welfare benefits plans which are being terminated on June 30, 2013 in connection with the Nortel bankruptcy, and are eligible to participate in the retiree settlement. This website includes Frequently Asked Questions, Resource Links, Key Documents and Contact Information Tabs and will be updated periodically by the VEBA Committee.
By way of history…
On January 14, 2009, Nortel filed for bankruptcy. During the course of the bankruptcy proceeding, Nortel sought to terminate its retiree welfare benefit plans and, as a result, the U.S. Trustee appointed a Retiree Committee to represent the interests of Nortel retirees (including surviving spouses and dependents) with respect to those plans. The members of the Retiree Committee were Gary R. Donahee, Mark Haupt, Susan Kane, Mike Ressner, and John Zalokar. The Retiree Committee (the predecessor to the VEBA Committee) worked tirelessly for 24 months as volunteers, on behalf of retirees, to negotiate a settlement and to develop a mechanism to provide the settlement proceeds to retirees on a tax-advantaged basis.
As a result of these efforts, on December 28, 2012, Nortel and the Retiree Committee entered into a settlement. Under the settlement, Nortel agreed to pay $66,172,000 in satisfaction of all claims for retiree welfare benefits held by Nortel retirees, and will terminate its retiree welfare benefit plans on June 30, 2013.
The NN Retirees Benefit Trust (VEBA Trust) was established by the Retiree Committee to receive the settlement amount. The VEBA Trust is intended to constitute a tax-exempt VEBA (“voluntary employees’ beneficiary association”). The VEBA Trust has received the settlement proceeds and will offer the NN Retirees Benefit Trust HRA Plan (HRA Plan) to eligible retirees effective July 1, 2013.
The Here and Now...
The VEBA Committee
The VEBA Committee is the successor to the Retiree Committee and currently consists of Gary R. Donahee, Mark Haupt, Susan Kane, Mike Ressner, and John Zalokar. The VEBA Committee has been working diligently since the effective date of the settlement on implementing the terms of the settlement agreement and establishing the HRA Plan. The VEBA Committee has oversight responsibility for the management of the VEBA Trust assets and the administration of the HRA Plan.
The HRA Plan
Under the HRA Plan, each eligible retiree will be able to obtain reimbursement of qualified medical expenses incurred on or after July 1, 2013. The amount of a retiree’s reimbursements will be based on his or her allocable share of the settlement amount.
The VEBA Committee has selected WageWorks to administer the HRA Plan on a day-to-day basis. WageWorks will be the main source of information for retirees who have questions regarding the types of medical expenses that can be reimbursed under the HRA Plan and the process of obtaining reimbursements under the HRA Plan.
By July 1, 2013, eligible retirees should receive a welcome package from WageWorks containing important information regarding the HRA Plan and how to obtain reimbursements from the HRA Plan.
If you have any questions regarding the HRA Plan, PLEASE CALL WAGEWORKS Customer Service Monday through Friday, 8AM to 8PM (eastern) at 1-877-924-3967. It is anticipated that WageWorks will be able to field questions about the HRA Plan beginning with the last week of June 2013.
The best way to contact the NN Retirees Benefit Trust administration office is:
1.) Via the Questions Tab on this Web Site
2.) By US mail at:
NN Retirees Benefit Trust
P. O. Box 292877
Nashville, TN 37229
3.) By E-Mail: Patrick.Rykwalder@nnrbt.org
Through July 2013, urgent questions regarding the settlement process; please call the TEMPORARY RETIREE HOTLINE AT THE TOLL FREE NUMBER (877-634-7178).
Please do not contact Togut & Segal LLP as that firm is NOT participating in the implementation of the Settlement or the HRA Plan.
Questions in regards to the operations of the VEBA Trust may be directed to 615-678-3138.