L&G completes pension plan buyout
Deal: Legal & General Group has completed its buyout of the Nortel Networks UK pension plan.
The insurance giant bought out the plan, which covers approximately 15,500 pensioner members and 7,200 deferred members, for £2.4bn. Nortel went into administration in 2009, and the plan then entered a pension protection fund assessment period as insolvency proceedings progressed.
With these proceedings now resolved, the Nortel plan has secured benefits above pension protection fund levels and will leave the fund upon the buyout by Legal & General.