Rolls-Royce North America purchases annuity to terminate DB plan

Rolls-Royce North America Inc. purchased a $145 million group annuity contract from Legal & General Retirement America to complete the termination of one of its U.S. pension plans, a spokeswoman for Legal & General said in an email.

The new contract transferred the remaining liabilities of the Retirement Plan for Rolls-Royce North America, affecting about 1,200 participants, the spokeswoman said.

LGRA said in a Dec. 1 news release that it has "long-standing relationship" with Rolls-Royce, providing both investment and pension derisking expertise and support in the U.K.

"As well as providing further security for pension participants, the transfer strengthens and derisks our balance sheet which is good for our business, employees and investors," said Fiona Brown, group head of pensions, Rolls-Royce, in the news release.

Reinsurance broker Aon advised Rolls-Royce on the transaction, the release noted.

As of Dec. 31, the Retirement Plan for Rolls-Royce North America had $340 million in assets, according to its most recent Form 5500 filing.

Stefanie Haigh, head of compensation and benefits, Americas, at Rolls-Royce, could not be immediately reached for further information.