The Vickers Group Pension Scheme, Derby, England, completed a £1.1 billion ($1.3 billion) buyout with Legal & General Group PLC.
Vickers is part of engineering company Rolls-Royce Group.
The deal covers more than 11,000 participants, said a news release Monday by L&G. The relationship between Vickers and L&G began in 2007 with a liability-driven investing strategy to derisk the pension fund, which is “now culminating in a full buyout,” said Kerrigan Procter, managing director of Legal & General retirement, in the release. “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 QE and latterly the outcome of the EU referendum before reaching the point where buyout was appropriate and achievable for all scheme members.”
Joel Griffin, head of pensions at Rolls-Royce, added in the same release: “This is a great testimony to the work of the trustees and the company working collaboratively over many years to ensure that this scheme is well funded with a prudent investment strategy to enable this excellent outcome for former Vickers employees.”
L&G also worked with Mercer as the adviser to the trustees.
Further comment could not be obtained by press time.