Edition:
India

Rolls-Royce's UK Pension Trustee Transfers Some Pension Liabilities To Legal & General


Thursday, 6 Jun 2019 

June 6 (Reuters) - Rolls-Royce Holdings Plc ::ROLLS-ROYCE HOLDINGS - TRANSFER OF PENSION LIABILITIES TO LEGAL & GENERAL.COMPLETED A DEAL TO TRANSFER CERTAIN PENSION RISK LIABILITIES TO LEGAL & GENERAL ASSURANCE SOCIETY LIMITED.DEAL COVERS TRANSFER OF ASSETS AND LIABILITIES RELATING TO APPROXIMATELY 33,000 PENSIONERS.DEAL WILL SEE ROLLS-ROYCE MAKE AN EXCEPTIONAL CASH CONTRIBUTION OF AROUND £30M.FREE CASH FLOW GUIDANCE FOR FULL YEAR REMAINS UNCHANGED.TRANSACTION TO FULLY INSURE BENEFITS PAYABLE FROM FUND AND PROVIDE PERMANENT SECURITY FOR PENSIONERS.DEAL WILL FULLY INSURE BENEFITS PAYABLE FROM FUND.TRANSACTION TO REDUCE GROUP'S POST-RETIREMENT OBLIGATIONS BY AROUND £4.1 BILLION..DEAL WILL PROVIDE PERMANENT SECURITY FOR PENSIONERS, WHILE REDUCING GROUP'S POST-RETIREMENT OBLIGATIONS BY AROUND £4.1 BILLION.ROLLS-ROYCE TRUSTEE WILL TRANSFER AROUND £4.6BN OF ASSETS.ROLLS-ROYCE TRUSTEE'S TRANSFER OF ASSETS RESULTS IN REDUCTION IN NET ASSETS OF AROUND £0.5BN THOUGH FUNDING LEVELS REMAIN UNCHANGED.RESIDUAL OBLIGATIONS, WHICH REMAIN WELL FUNDED, WILL BE SMALLER WITH LESS RISK FOR TRUSTEE AND ROLLS-ROYCE TO MANAGE IN FUTURE.