The Trustee has recently reported an important and positive development by confirming it has entered into an agreement with Legal & General to fully insure the benefits being paid to around 33,000 members. These members were in receipt of pension payments as at 1st April 2018.

Your benefits are not included in this transaction, but the reduction in size of the remaining Fund means that it will be much easier for the Trustee and Rolls-Royce to manage in the future. This means that the security of the remaining members’ benefits has increased.

Ex Rolls-Royce Pension Fund members, who aren’t eligible for guaranteed increases on pension they earned before April 1997, will be pleased to hear that the probability of annual increases being regularly awarded in the future to members will improve following the Legal & General transaction. Rolls-Royce also commits that it will not propose any future agreement to transfer the payment of benefits without fully guaranteeing increases for pensions earned before April 1997.

Full details of the agreement are included in the letter issued to you on 5th June and in the accompanying Q&A. We have also put together an additional Q&A document that will be updated with answers to common questions we receive from members. We will keep this updated as and when additional questions arise.