The UK pension fund of the now defunct financial group MF Global has agreed a £52m (€61m) buyout for fund liabilities with Pension Insurance Corporation (PIC).

The buyout completion happened at the same time as the conclusion of settlement negotiations with KPMG as special administrators of MF Global UK, KPMG said.

MF Global, formerly known as Man Financial, was an international financial brokerage firm that went into special administration in the UK in October 2011 following the worldwide collapse of the group.

The UK pension fund entered a Pension Protection Fund (PPF) assessment period, and was significantly underfunded on a buyout basis, KPMG said.

After this, the trustees of the scheme discussed with the special administrators an early settlement of their claim against the MF Global group, it said.

The trustees were trying to secure benefits for fund members that were broadly the same as pension promises made before the corporate collapse.

The buyout deal was completed on 15 October, and the fund would now fully exit its PPF assessment period, KMPG said.

Chris Martin, managing director of Independent Trustee Services, the professional trustee to the fund, said: “I am delighted we have been able to help deliver such a successful outcome for all members.

“This has only been possible as a result of the open and constructive dialogue with the administrators, the creative approach of our advisers and PIC, and the tireless efforts of the whole trustee board.”

Richard Heis of KPMG said: “Using modelled returns between the different MFG companies, we ensured the deal is win-win for MFG and the members.”

The trustees were advised by LCP and Pinsent Masons.