With plans for a major restructuring, Nortel Networks is also planning to overhaul its pension plans.

After announcing it would reduce about 1,100 North American positions, Nortel also said it would introduce a Capital Accumulation Plan for all current and future employees beginning Jan. 1, 2008.

Those employees who are already in a defined contribution plan will remain in the plan with an automatic employer contribution of two per cent of employees’ eligible earnings and a 50% match on contributions up to 6% of earnings.

Also, current post-retirement healthcare benefits will be eliminated for employees who are not age 50 with five years of service on July 1, 2006.

Nortel employees will keep their defined benefit earnings which they can collect upon retirement or leaving Nortel.

To comment on this story email joel.kranc@bencan-cir.rogers.com.

Copyright © 2020 Transcontinental Media G.P. Originally published on benefitscanada.com

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