Legal & General Completes PRT Deal with Rolls-Royce North America
Legal & General completed the pension risk transfer for $145 million.
Legal & General Retirement America completed a $145 million pension risk transfer transaction with Rolls-Royce North America, Inc., the companies announced Thursday.
The deal, which closed in July, covered approximately 1,200 participants from the Retirement Plan for Rolls-Royce North America, according to a press release.
Rolls-Royce did the deal in part to secure retirement income for pension beneficiaries, added Fiona Brown, group head of pensions at Rolls-Royce.
“We are pleased to have secured the retirement income for our former colleagues and their families, which is the result of prudent funding of our pension plan over many years,” she said in the press release. “As well as providing further security for pension participants, the transfer strengthens and de-risks our balance sheet which is good for our business, employees and investors.”
Pension risk transfer allows defined benefit retirement plan providers to remove some or all the obligation to pay guaranteed retirement benefits to plan participants.
“We are thrilled to expand the relationship between Legal & General and Rolls-Royce with this transaction, ” said George Palms, president of Legal & General Retirement America, in the release.
Legal & General previously secured a transaction with the Rolls-Royce UK Pension Fund and a buyout for the Vickers Group Pension Scheme, a company subsidiary, the release adds.
Legal & General Retirement America is a business unit of Legal & General America, headquartered in Urbana, Maryland,
that specializes in pension risk transfer for U.S institutional clients. The Legal & General America companies are part of the Legal & General Group, a British multinational financial services and asset management company headquartered in London.
As of December 31, 2021, Legal & General had $1.7 trillion in total assets under management, according to the press release.
Neither Legal and General Retirement America nor Rolls Royce responded to questions about the deal.