Press releases

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.

11 May 2021

Full press release

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.

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

Further information


Margrit Williams

Director of External Engagement

Legal & General Capital

Notes to editors

Established in 1836, Legal & General is one of the UK's leading financial services groups and a major global investor, with £1.2 trillion in total assets under management1 of which 40% is international. We have a unique and highly synergistic business model, which continues to drive strong returns. Legal & General provides powerful asset origination and management capabilities directly to clients, which also underpin our leading retirement and protection solutions. We are a leading international player in Pension Risk Transfer, in UK and US life insurance, and in UK workplace pensions and retirement income. Our purpose is to improve the lives of our customers and create value for our shareholders. Through inclusive capitalism, we are investing in long-term assets, such as real estate and infrastructure, that can help build a better society for the future.

1Data as at 31 December 2023.

Legal & General Retirement Institutional (LGRI) works with trustees and sponsoring companies of defined benefit (DB) pension schemes of all sizes to settle their pension obligations and secure scheme members’ benefits, through a full range of buy-ins, buyouts and other de-risking solutions. Our Client Services’ 12-month rolling Net Promoter Score (NPS) is above +70, which is widely regarded as being at a “world class” level. Legal & General is the UK’s longest-standing active bulk annuity provider.

Our UK Retirement annuity book stands at an estimated £86.1 billion at 31 December 2023. Across the group over £30 billion is invested in direct investments that deliver positive social and environmental impacts, such as clean energy and affordable housing. Legal & General provides income and pension security to more than a million retirement customers around the world.