Rolls-Royce the engine maker has offloaded £4.6bn chunk of their pension scheme to Legal & General which covers 33,000 of their members, the biggest deal of its kind.
In total Rolls-Royce covers 76,000 pensions in total said the remaining pension assets will offer “smaller with less risk” for the group.
Joel Griffin, head of global pensions and benefits at Rolls-Royce said, “This agreement will result in increased security for Rolls-Royce pensioners and reduced risk for our business.
“Legal & General is one of the world’s leading insurance companies and as a result of this deal the provision of benefits will be governed by stringent funding requirements, resulting in a secure pension environment for our pensioners.”
Laura Mason, chief executive of Legal & General institutional retirement 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.”