Greens Call for Long Term Disability Pension Funds be Protected by Law
OTTAWA – Severely sick ex-employees of Nortel on long term disability are about to lose benefits they paid for over many years. Former engineers, scientists and managers diligently contributed to their employer’s long term disability (LTD) fund under the assumption their contributions were protected by law as other insurance programs were. Unfortunately, there are no laws requiring LTD benefits to be insured.
As once the darling of the Canadian economy with over 100 years of history, Nortel’s promise to preserve pensions and benefits was seen by employees as one that would be kept. The reality is their pension trust is severely under-funded, which leaves more than 400 employees on LTD with no coverage.
Peter Burns, 54, a representative for the 400 employees on long term disability, has lived independently since the age of 18. After spinal tumour surgery, a stroke, and recovering from paralysis he is left with severe chronic pain requiring $3,000 in medicine each month to manage his pain. His coverage is about to vanish, while executives enjoy tens of millions of dollars in bonuses.
“Most employers offer long term disability benefits to their workers. But such LTD plans are not required to be insured, leaving hard-working Canadians with a false sense of security,” said Jean-Luc Cooke, Green Party candidate for the Ottawa riding of Nepean—Carleton. "Ottawa is host to thousands of ex-Nortel employees who are distressed to find that promises are not being kept," he added.
“Time is running out to protect the most vulnerable employees affected by Nortel’s collapse,” said Elizabeth May, Leader of the Green Party of Canada. “Emergency changes to the Bankruptcy and Insolvency Act would address their immediate needs, and changes to the Insurance Companies Act to include LTD as a regulated insurance product will prevent future fiascos.”
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Debra Eindiguer
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C: 613.240.8921
media@greenparty.ca
www.greenparty.ca
