Regulator to impose financial support direction

Posted on Feb 24, 2010

The Pensions Regulator is going to court in Canada in connection with its intention to impose a financial support direction in relation to the Nortel Pension Scheme in the UK.

The Nortel Group has underfunded pension schemes in the UK, the US and Canada, and the UK scheme has entered a Pension Protection Fund Assessment Period.

The Regulator notified the UK scheme trustees on 25 January of its intention to seek a financial support direction against the parent company requiring them to make good the funding shortfall which could be as much as £2.1bn.