On the go: Rolls-Royce has completed a partial buy-in on the way to buyout in excess of £4.6bn, securing the benefits of around 33,000 members of the Rolls-Royce UK Pension Fund.
The deal is the biggest of its kind in the UK. Liabilities worth around £4.1bn will be transferred to Legal & General, with the Rolls-Royce trustee also transferring around £4.6bn in assets. It also included the transfer of a hedging portfolio and the restructuring of an existing longevity swap held by the Rolls-Royce UK Pensions Fund.
Rolls Royce will make an exceptional cash contribution of around £30m as part of the transaction. The deal represents about 30 per cent of the RRPF’s assets and 25 per cent of the market cap of Rolls-Royce Holdings Plc.
The scale of the transaction provides further opportunities for us to invest directly in the UK economy and make a positive difference in our towns and local communities
Laura Mason, Legal & General
Joel Griffin, Rolls-Royce’s head of global pensions and benefits, said: “We’re delighted to be able to offer greater stability and certainty for the members of the Rolls-Royce UK Pension Fund.” He thanked the trustees and advisers for ensuring the scheme was well-funded.
Laura Mason, CEO of Legal & General Retirement Institutional, said: “The scale of the transaction provides further opportunities for us to invest directly in the UK economy and make a positive difference in our towns and local communities.”
