The Quebec government said that it will move to try and safeguard the remaining pension assets of 3,750 Nortel employees in the province if their pensions are terminated while the company is under bankruptcy protection.

Under the deal, Quebec's pension plan would take charge of the pension assets and try to grow the retirement savings on behalf of the Quebec beneficiaries.

Such an arrangement would last to a maximum of five years and the government called the measure a “special situation.''

The Quebec Nortel employees would be covered under provincial legislation covering bankruptcy provisions.

Bill 1 allows retirees whose benefits have been reduced following the termination of their pension plan due to their employer's bankruptcy to request that their pension be administered by the provincial pension plan up to a maximum of five years.

Nortel has been selling off its global operations piece by piece after seeking court protection from creditors in January.