Lehman Brothers Pension Scheme – funding agreement announced

Published at 11:30 AM on 19 August 2014

The Joint Administrators of Lehman Brothers International (Europe) (“LBIE”) and the Trustees of the Lehman Brothers Pension Scheme (the “Scheme”) are pleased to announce that they have reached an agreement on the funding of the Scheme deficit. 

The agreement provides for LBIE to fund the defined benefit pensions promised under the Scheme.   In due course it is expected that the benefits will be secured under a bulk annuity policy with an insurance company.  It is also expected that members will receive their pension benefits in full. 

Whilst the funding to the Scheme is provided by LBIE, as part of the settlement agreement significant financial contributions have also been made by certain other companies in the Lehman group.  The details of the agreement remain confidential.

This agreement brings to an end litigation and negotiation which has taken place between the parties since the Pensions Regulator started action in 2010 seeking a Financial Support Direction (FSD) against LBIE and other Lehman companies. 

 

Tony Lomas, joint administrator of LBIE and PwC partner, said:

 

“The conclusion of this significant pension scheme deficit issue is another milestone on the path to resolving the administration of LBIE.  The agreement benefits LBIE’s creditors by securing significant contributions to the cost of the settlement from other Lehman group companies, and alleviates concerns for pension scheme members about the provision of their pension benefits.” 

 

Peter Gamester, Chairman of Trustees of the Lehman Brothers Pension Scheme, added:

 

“This negotiated outcome is a good result for defined benefit members of the Lehman Brothers Pension Scheme. It has been made possible by the underlying financial strength of Lehman Brothers in the UK , and the successful administration of LBIE and other UK companies.  The Trustees would like to thank members for their patience during the difficult period following the collapse of Lehman Brothers in September 2008; but at least this patience has been rewarded by the commitment to provide funding to secure pension entitlements in full. We will be contacting members shortly to explain in detail the next steps.”

ENDS

For more information, contact

David Jetuah

PwC | Media Relations, Assurance and Business Recovery Services
02072121812

Notes to editors

 

  1. AV Lomas, SA Pearson, PD Copley, R Downs and JG Parr were appointed as Joint Administrators of Lehman Brothers International (Europe) to manage its affairs, business and property as agents without personal liability. AV Lomas, SA Pearson, PD Copley, R Downs and JG Parr are licensed in the United Kingdom to act as insolvency practitioners by the Institute of Chartered Accountants in England and Wales.

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© 2014 PwC. All rights reserved

 PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see www.pwc.com/structure for further details.

 


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About PwC

At PwC, our purpose is to build trust in society and solve important problems. We’re a network of firms in 157 countries with more than 208,000 people who are committed to delivering quality in assurance, advisory and tax services. Find out more and tell us what matters to you by visiting us at www.pwc.com.

PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see www.pwc.com/structure for further details. © 2016 PwC. All rights reserved

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