L&G completes £4.6bn Rolls-Royce pension scheme deal

Rolls-Royce has completed a record £4.6bn pension deal with Legal and General (L&G), the UK's largest buyout to date.

Rolls-Royce will transfer the assets and liabilities of approximately 33,000 members in the bulk annuity transaction.

The Rolls-Royce UK Pension Fund (RRPF) chair of trustees, Liz Airey, said that she was “delighted to have achieved this outcome” for its members.

She continued: “The transaction will provide greater security and certainty around the retirement benefits our members have been promised.

“This has been made possible by careful risk management over many years and a strong collaboration between the trustee, Rolls-Royce and our advisers."

L&G has been providing investment management services to the RRPF for 20 years and will continue to do so for “a significant proportion” of its remaining £8.4bn asset portfolio.

L&G Retirement Institutional CEO, Laura Mason, added: "We have developed an excellent relationship over many years with Rolls-Royce, providing both investment and pension de-risking expertise and support.

“This transaction, which demonstrates the strength and expertise of the L&G team, is excellent news for the pension plan and the sponsor. It will provide enhanced security for plan members and the quality customer service for which L&G is known."

The RRPF has a total of 76,000 members and the deal will fully insure benefits payable from the fund and provide permanent security for the 33,000 covered, while reducing Rolls-Royce’s retirement obligations by around £1.4bn.

L&G had previously completed a buyout, in 2016, for 11,000 members of the Vickers Group pension scheme, which is part of the Rolls-Royce Group.

    Share Story:

Recent Stories


Re-shaping the future of fiduciary management?
Pensions Age Editor, Laura Blows, speaks to River and Mercantile co-head, Ajeet Manjrekar, about the future of fiduciary management in the UK

GLOBAL EQUITIES: CURRENT PERSPECTIVE AND OUTLOOK
Pensions Age Editor, Laura Blows, speaks to Christopher Rossbach, CIO and Portfolio Manager of the J. Stern & Co. World Stars global equity strategy about the investment opportunities for global equities in these unprecedented times.

Fixed income markets during coronavirus disruption
Laura Blows speaks to Ewan McAlpine Senior Client Portfolio Manager, Royal London Asset Management about fixed income markets during coronavirus disruption