Business

L&G agrees to £105m buyout with pension plan

The Nortel Networks UK Pension Plan buyout will provide additional benefits to around 8,200 retirees and 4,300 deferred members

Legal and General Assurance Society (L&G) has announced it has agreed a £105m buyout with the Nortel Networks UK Pension Plan.

The buyout of the pension plan will provide additional benefits to around 8,200 retirees and 4,300 deferred members.

This transaction comes after that £2.4bn buyout between L&G and the Nortel Network’s plan in 2018, which secured benefits in excess of PPF levels for members.

Rachel Cutts, origination and execution director for Legal & General Retirement Institutional, said: “The success of this transaction is a direct result of the solutions-driven framework that we put in place in 2018 in collaboration with the Trustee and its advisers, which has now allowed us to further enhance the benefits for so many of Nortel’s pension plan members.

“It’s another important milestone for the Plan and we look forward to continuing to work with the Trustee to complete its journey from PPF assessment to fully securing benefits above PPF levels for its members.”

She added: “This transaction builds on Legal & General’s track record of structuring and delivering beneficial outcomes for members of pension schemes that enter PPF assessment.”

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