Under the deal, which requires court approval, Nortel will continue to administer its negotiated pension plan and its managerial and non-negotiated pension plan until the end of September when a new administrator will be appointed.
The company will also continue to make the current service and special payments it has been paying through March 31. It will make only current service payments until the end of September.
Nortel will pay income benefits to LTD beneficiaries and to those receiving survivor income benefits and survivor transition benefits through December 31.
Medical and dental benefits to Nortel pensioners and survivors and Nortel LTD beneficiaries will also be paid until the end of the year. Life insurance benefits will also continue unchanged until Dec. 31.
The settlement is worth $57 million.
The deal came as the Ontario government said Monday that it will pay into its Pension Benefits Guarantee Fund so that the Nortel pensioners will be able to receive up to $1,000 per month.
