Rolls-Royce UK Pension Fund completes £4.3bn buy-in with PIC

Written by Sophie Smith

11/08/2025

The Rolls-Royce UK Pension Fund has completed a £4.3bn buy-in with Pension Insurance Corporation (PIC), securing all of the fund's total remaining liabilities.

LCP acted as lead transaction adviser to the trustees, whilst Mercer acted as scheme actuary and investment adviser. Legal advice was also provided to the fund by Linklaters.

PIC, meanwhile, received legal advice from Addleshaw Goddard as its main adviser, with additional support from Herbert Smith Freehills Kramer on aspects of the transaction.

The trustee said that maintaining the current commitment to high levels of customer care and support was a key focus during the transaction, which covers 36,000 people, including 15,000 pensioners and 21,000 deferred members.

"We have invested significant time and effort over a number of years to provide our members with exceptional customer service," Rolls-Royce UK Pension Fund trustee chair, Liz Airey, explained.

"It was critical for us that we selected an insurer to secure our members’ pensions which is able to continue this.

"We are really delighted that PIC, which has a long track record of excellence in customer service, brought us such a strong proposition. We feel our members are in safe hands.”

Mercer partner, James Maggs, also emphasised the member focus, stating that the deal had set "a new standard in prioritising the member experience”, while LCP partner and lead transaction adviser, Michelle Wright, held up the "ground-breaking" transaction as the epitome of what it means to put pension scheme members at the heart of decision-making.

"From start to finish, we have been guided by the trustee’s clear 'member-first' principles, which have significantly raised the bar for member-centric insurance solutions," she explained.

"We are delighted to have been part of such an innovative, landmark transaction, which paves the way for other large pension schemes seeking a best-in-class solution for their members.”

Rolls-Royce CFO, Helen McCabe, also highlighted the deal as a "win-win" for all stakeholders, stating: "We are proud to have been able to fully fund and secure the pension promises made to colleagues, former colleagues and their families.

"This deal is also another step on our journey towards simplifying Rolls-Royce."

Adding to this, PIC chief origination officer, Mitul Magudia, said: “It has been a pleasure working on this innovative transaction with the trustees and their advisers.

"We were delighted to be selected and proud that the trustees have entrusted us with helping to continue to deliver this service to the members.

“Following the announcement of our acquisition by Athora, which is subject to regulatory
approval, we expect to have strong appetite to complete many more ground-breaking
transactions like this in the future.”

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