Rosalind Connor comments in Pensions Expert on Nortel’s £2.4bn buyout
British insurer Legal & General has taken on £2.4bn in pension liabilities from Nortel Networks.
The buyout covers 15,500 pensioners and about 7,200 deferred members of the Nortel Networks UK Pension Plan.
Rosalind Connor commends Nortel’s use of communication explaining changes in simple terms and how they pre-briefed a large independent financial advice firm on the scheme to ensure that members could pick a trusted adviser:
“The Nortel scheme is a classic example of what happens if people think carefully about communications and do them well.”
Rosalind urged other schemes to take the same approach, and to make steps like cleaning up and securing any extra data needed as soon as possible, in order to show insurers they are committed to the transaction (Please see our Safe Settlement page for more information).
Rosalind also highlights the questions that remain over the extent to which the PPF can export its powers globally in similar cases:
“It’s always quite a challenge to enforce internationally,” said Connor. “Not unreasonably, most countries’ law is not particularly embracing to money going overseas.”
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