Travers Smith LLP has advised Nortel Networks UK Pensions Trust Ltd (“Trustee”) on the third and final phase of a landmark insurance transaction, with the total value of transactions between the Nortel Networks UK Pension Plan ("Plan") and Legal & General ("L&G") being £2.5 billion.
This transaction, was the final stage of a multi-phase buyout which started in October 2018. At that time, the Trustee entered into a buyout with L&G which covered around 15,500 pensioner members and 7,225 deferred members and allowed the Plan to exit its 10-year Pension Protection Fund ("PPF") assessment period and provide Plan members with benefits significantly better than those they would have received in the PPF. This was larger than any previous PPF-plus buyout.
Partner Dan Naylor said: "This was the culmination of a highly sophisticated de-risking transaction requiring careful innovation and pragmatic, member-focussed solutions to technical legal developments. A highly-collaborative adviser team worked closely with the Trustee allowing an outcome where members received benefits well above PPF levels".
Our team was led by Partner Dan Naylor, Partner and Head of Pensions Susie Daykin and Senior Counsel Chris Widdison.
