Rolls-Royce has reached an agreement to transfer its UK pension scheme to the Pension Insurance Corporation (PIC) in a transaction valued at £4.3 billion ($5.78 billion).

The arrangement, announced by PIC on Sunday, will cover all remaining pension commitments for around 36,000 former and current Rolls-Royce employees. This move effectively removes the company’s defined benefit pension liabilities from its books.

“This is a win-win for all our stakeholders,” said Helen McCabe, chief financial officer of Rolls-Royce.

PIC specializes in bulk annuities — financial arrangements that enable companies to transfer defined benefit pension responsibilities to an insurer — a market that has grown rapidly in recent years as firms seek to reduce long-term financial risks.