- Rolls-Royce has transferred £4.6bn of its pension scheme to Legal & General in a deal which covers assets and liabilities relating to some 33,000 of the 76,000 pensioners enrolled in its Rolls-Royce UK Pension Fund.

The transfer would fully insure benefits payable from the fund at the same time as reducing Rolls-Royce's post-retirement obligations by some £4.1bn. The residual obligations, which remained well funded, would be smaller with less risk for the trustee and Rolls-Royce to manage in the future, the company said.

"This is a significant transaction which represents another step on our journey to simplify, de-risk and strengthen the company," said Stephen Daintith, CEO.

The deal would see Rolls-Royce make an exceptional cash contribution of around £30m. Free cash flow guidance for the Full Year remained unchanged, Rolls-Royce said. The £4.6bn asset transfer would result in a reduction in net assets of around £0.5bn, although funding levels remained unchanged, the company said.

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