Nortel Networks UK pension plan has completed a third and final buyout deal to insure the final tranche of members’ benefits.
The plan entered a Pension Protection Fund (PPF) assessment after Nortel Networks went into administration in 2009. The plan was able to secure material additional funds from the Nortel insolvency process while in PPF assessment in order to improve member benefits.
In 2018, the plan completed a £2.4 billion buyout deal with Legal and General to secure members’ benefits in excess of PPF levels. This transaction included provision to secure additional benefits for members on receipt of further recoveries from the Nortel insolvency process. This was followed by a second £105m buyout deal with Legal and General in 2021.
Isio advised the trustee on the transaction, while Willis Towers Watson acted as scheme actuary, and Travers Smith and Pinsent Masons provided legal advice. PWC and Hogan Lovells provided advice regarding financial recoveries for the plan, while Clifford Chance provided legal advice to Legal and General.
Clive Gilchrist, chair of trustees, said: “I am delighted that after 15 years of hard work by the trustee board and advisers we have completed the final buy out, having successfully recovered significant funds to provide members with benefits well above PPF levels.”
