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OTTAWA -- Ontario finance minister Dwight Duncan is expected to announce a bailout package for Nortel pensioners.
The Ontario Government will pay into the Pension Benefits Guarantee Fund (PBGF) so that Nortel pensioners will receive up to $1,000 per month.
Currently Nortel's pension plan is about 30% underfunded, but the PBGF doesn't have enough money in it to cover the difference.
Minister Duncan is expected to announce Sunday afternoon that the Ontario government will top up the heavily used, 30-year-old PBGF so Nortel pensioners affected by the company's bankruptcy protection will still get pension benefits.
Ontario is the only province with a PBGF, so the announcement is expected to only affect Nortel pensioners who were based in Ontario.
doug.hempstead@sunmedia.ca