Trust Deed and Rules
This is the legal document that established the Plan and governs how it operates. A new Trust Deed and Rules was signed on 18 December 2008.
You can download the latest Trust Deed & Rules (which runs to over 160 pages), by clicking the link below or you can request a paper copy from Willis Towers Watson
Nortel in Administration
Our sponsoring company, Nortel Networks UK Limited, was granted an Administration Order on January 14, 2009. This automatically triggered the commencement of a process for the Pension Protection Fund (PPF) to put the Plan into “PPF Assessment”. This has a number of consequences for members with pensions in payment and members with deferred pensions. Please refer to the Communications section for details of all letters sent to members and also the FAQ section
Statement of Investment Principles (SIP)
This sets out the principles governing investment decisions for the Plan. Each pension scheme has to have a SIP, in accordance with the Pensions Act 1995 (“the Act”) and subsequent legislation.
The Trustee is responsible for determining the Plan’s investment policy but is obliged to take into account the PPF’s view on investment strategy.
The SIP covers the Investment Objectives, Risk Management and Measurement,Strategic Asset Allocation, Day to Day Management of the Assets, Additional Assets, Realisation of Investments and Socially Responsible Investments and Corporate Governance.
Click here to view latest version of the SIP, which was approved by the Trustees on 12th September 2016. This document references the Investment Policy Implementation Document which can be found here.
Report and Accounts
The Trustee prepares report and accounts on an annual basis. The accounting period for the 2016 accounts was from 1 April 2015 to 31 March 2016, and these were approved by the Trustee on 26th October 2016. The full set of accounts for this year and previous years can be accessed below.
Report and Accounts as at 31st March 2016
Report and Accounts as at 31st March 2015
Report and Accounts as at 31st March 2014
Report and Accounts as at 31st March 2013
Report and Accounts as at 31st March 2012
Report and Accounts as at 31st March 2011
Report and Accounts as at 31st March 2010
Report and Accounts as at 13th January 2009
Following his appointment as Chairman in June 2007 David Davies carried out a review of the Governance of the Plan.
The Plan operates using sub committees to take on various functions and report back to the main Trustee Board. Details of the main sub committees appear below.
The Investment Committee is a forum established under Trustee authority with the purpose of dealing with and overseeing the management of the Plan assets.
The Committee has no formal decision making powers but is tasked to review and make recommendations to the Trustee on all investment matters. It is constituted as follows:-
1 Independent Chairman of the Trustee Board
1 Independent Trustee Director
1 Company nominated Trustee Director
1 Member Nominated Trustee Director
and by invitation:
Investment Adviser from Mercer
Administration Discretions & Benefits Committee (ADB Committee)
The Administration Discretions & Benefits Committee, under delegated authority of the Trustee, is responsible for overseeing the correct administration of the Plan, reviewing quarterly management accounts, cashflow statements, exercising discretions under the Plan/PPF Rules in relation to benefits and also dealing with the first stage of complaints via the Internal Disputes Resolution (IDR) procedure. It is constituted as follows:
1 Independent Trustee Director (appointed Chairman by the Trustee Board)
2 Member Nominated Trustee Directors
In recognition of the Trustee’s objective that the Plan will receive sufficient funds from Nortel global insolvency processes to secure benefits for members outside the Pension Protection Fund (PPF), the Trustee has decided to establish the Buy-Out committee (BOC) and to delegate certain actions and responsibilities to the BOC in accordance with the Trustee’s Articles of Association and Trust Deed and Rules.
The BOC will work closely with its advisers and the rest of the Trustee Board and is constituted as follows:-
1 Independent Chairman of the Trustee Board
2 Independent Trustee Directors (1 formerly nominated by the Company)
Please see the Trustee Board page
Conflicts of Interest
In accordance with the Pension Regulator’s guidance, the Board has adopted a policy to deal with conflicts of interest.