Rolls-Royce UK Pension Fund has completed the buyout of all 36,000 members of the scheme to Pension Insurance Corporation (PIC), nine months after agreeing a £4.3bn full buy-in with the scheme’s trustee.

The transaction means responsibility for paying members’ benefits has transferred from the fund to PIC, with members becoming individual PIC policyholders.

To maintain continuity of service, including the scheme trustee’s digital-first approach, PIC appointed Brightwell as its administration partner.

Brightwell has opened a dedicated office in Derby, while the existing Rolls-Royce pensions administration team, which was already based in the city, has transferred to the administrator.

PIC said the arrangement would retain the team’s knowledge and expertise while combining it with Brightwell’s technology platform.

Rolls-Royce UK Pension Fund chair of trustees, Liz Airey, described the transition as “exceptionally smooth”, particularly given the scheme’s size and the simultaneous transfer of its administration services.

“I want to thank the whole team at PIC and Brightwell for their focus on the needs of the members," she said.

“I have no doubt that we made the right choice and that the members will be exceptionally well looked after as PIC policyholders.”

PIC head of new business delivery, Pete Rennalls, stressed that the close relationship between the parties had enabled the transition to be completed within nine months.

“This transition is a great example of what can be achieved with good preparation, expert partners, close working relationships, a supportive sponsor and an unwavering focus on members’ needs,” he stated.

PIC head of pension services, Andy Rose, added that the completion represented an important milestone in the insurer’s long-term commitment to providing customer care for its policyholders.

“I’d like to express my thanks to Liz and the whole team at Rolls-Royce and Brightwell for their incredible support and collaboration over the past nine months,” he continued.

“Looking ahead, we are excited to work with our new partner Brightwell to provide a high-quality, outcome-focused customer experience, making sure our policyholders continue to receive the support and care they deserve for the long term.”

Brightwell head of member services operations, James Pearson, described the transition as a “major collaborative effort”.

“By retaining the existing Rolls-Royce administration team and combining that experience with our technology platform, we can continue to deliver a reliable and high-quality service to policyholders on behalf of PIC,” he said.

This article was first published on our sister website, Pensions Age.

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