(Reuters) -Pension Insurance Corporation (PIC) has completed a 4.3 billion pound ($5.78 billion) deal to full buy-in of the Rolls-Royce UK Pension Fund, securing pensions for 36,000 members, it said
Rolls-Royce Transfers UK Pension Fund to PIC in £4.3 Billion Deal
Overview of the Rolls-Royce Pension Fund Sale
(Reuters) -Aircraft engine maker Rolls-Royce sold its UK pension fund to Pension Insurance Corporation (PIC) in a 4.3 billion pound ($5.78 billion) deal, PIC said in a statement on Sunday.
Details of the Transaction
The deal will cover Rolls-Royce's entire outstanding liabilities to its workers, comprising the pensions of 36,000 people.
Impact on Stakeholders
"This is a win-win for all our stakeholders" Rolls-Royce CFO Helen McCabe said in the statement, adding that it is a step towards simplifying Rolls-Royce.
Market Trends in Pension Schemes
The transaction follows PIC's announced acquisition by Athora, pending regulatory approval. The deal was first reported by Bloomberg News earlier this week.
PIC specializes in defined benefit pension schemes, known as bulk annuities. Demand for bulk annuities has surged in the last few years as companies seek to shed defined benefit, or final salary, pension schemes from their balance sheets.
($1 = 0.7435 pounds)
(Reporting by Rajveer Singh Pardesi in BengaluruEditing by David Goodman, Elaine Hardcastle)
