Rolls-Royce, Goodwood, England, insured £4.1 billion ($5.2 billion) in liabilities through a buyout with Legal & General Assurance Society, the firm said in a statement Thursday.
The deal covers the transfer of assets and liabilities of 33,000 retires of the Rolls-Royce U.K. Pension Fund.
"This is a significant transaction, which represents another step on our journey to simplify, de-risk and strengthen the company," Stephen Daintith, chief financial officer of Rolls-Royce, said in a news release. "Rolls-Royce and the trustees of the Rolls-Royce U.K. Pension Fund have worked intensely to ensure that the fund continues to have the resources it requires to meet its obligations. This agreement is a further step towards ensuring benefits for our pensioners,"
Rolls-Royce will make a cash contribution of about £30 million to the plan following the deal.
Legal & General previously insured £1.1 billion buyout for Rolls-Royce's Vickers Group Pension Scheme in 2016.
Rolls-Royce U.K. Pension Fund had £13 billion in assets as of Sept. 30, 2017.