UK insurance giant Legal & General has completed the second largest ever pensions buyout today – snapping up Nortel Networks UK Pension Plan, nearly a decade after its telecommunications sponsor, collapsed, for £2.4 billion.
In a report released by City AM it was outlined that the benefits of 15,500 pensioner members and 7,200 deferred members would be protected by the deal. The scheme had originally been placed on to the Pension Protection Fund as far back as 2009 when its sponsor slipped into administration.
“The collaborative relationship built up with KPMG and the trustee, working closely together, enabled us to deliver a complex solution to meet the needs of the trustee and plan members, while delivering to tight timescales,” said Laura Mason, chief executive of L&G Retirement Institutional.
“This transaction continues to demonstrate our solutions driven proposition, while providing wider benefits for the pension environment and the UK economy as we deliver further direct investments.”
According to David Davies, chair of the pension scheme’s board of trustees, as quoted by the publication, the buyout will provide members with enhanced flexibility to choose between pension options.
The largest ever pensions buyout took place in 2014 between Legal & General and TRW.
