L&G completes £1.1bn Rolls-Royce pension buyout

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Legal & General has completed its largest pension risk transfer deal this year with the £1.1bn buyout of a Rolls-Royce pension scheme covering over 11,000 members.

The buyout relates to the Vickers Group pension scheme, after Rolls-Royce acquired engineering group Vickers in 1999 in a £576m deal.

Rolls-Royce has been working with Legal & General Investment Management to derisk its pension schemes.

L&G retirement managing director Kerrigan Procter says: “We look forward to welcoming the 11,000 members of the Vickers group pension scheme to L&G.

“We are pleased to have worked closely with the Scheme trustees, their advisers Mercer, and Rolls-Royce Group to achieve a full buyout.

“We are grateful for being able to play a part as the trustees, with patient and careful management, steered their way through the financial crisis, recession, the consequences of quantitative easing and latterly the outcome of the EU referendum before reaching the point where buyout was appropriate and achievable for all scheme members.”

Rolls-Royce head of pensions Joel Griffin says: “This is a great testimony to the work of the trustees, their advisers and the company who have worked collaboratively over many years to ensure that this scheme is well funded with a prudent investment strategy.

“This has ultimately enabled us to deliver this excellent outcome for former Vickers employees.”