Legal & General agrees second transaction with the Nortel Networks UK Pension Plan

Legal & General Assurance Society Limited (“Legal & General”) today announces that it has agreed a £105 million buyout with the Nortel Networks UK Pension Plan (“the Plan”), providing additional benefits to around 8,200 retirees and 4,300 deferred members.

This transaction follows a £2.4 billion buyout between Legal & General and the Plan in 2018, which secured benefits in excess of PPF levels for members. This was achieved through an innovative transaction structure and benefit design, which provided members with flexibility and options to reshape their benefits to suit their preferences.


The Plan originally entered PPF assessment following its sponsor, Nortel Networks UK Limited, going into administration in 2009. Since the transaction with Legal & General in 2018 the Plan has received additional recoveries through the sponsor’s insolvency proceedings. Today’s buyout uses some of these funds to provide additional benefits to Plan members on terms that were agreed alongside the original transaction. A further transaction is likely to follow in the future.


The Trustee was advised on the transaction by Isio and legal advice was provided by Travers Smith. Legal advice was provided to Legal & General by Eversheds Sutherland.

Read about Legal & General's first transaction with Nortel Networks here

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.


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

Rachel Cutts, Origination and Execution Director, Legal & General Retirement Institutional

For further information, please contact:

Margrit Williams

PR & Communications Director, Legal & General Retirement Institutional

Contact for:

DB/Final Salary pension schemes de-risking -buy-ins, buy-outs, longevity insurance
Alternative de-risking solutions – APP, ISS
Pension scheme administration
Re-insurance
(UK, USA, Canada, Bermuda and Ireland)

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