The previous valuation was undertaken as at 31 October 2019, following which the Company accelerated payment of its remaining deficit recovery contributions of £1.3bn.
The next actuarial valuation was expected to be undertaken at 31 March 2022. However in September 2021, the Trustee and Company agreed to bring the date forward to 31 March 2021. This was a positive step for the Section as it would allow a full funding strategy review and covenant assessment to be undertaken a year earlier. A covenant assessment is an assessment of the strength of the Company and its ability to financially support the Scheme. This review has provided the Trustee and Company with clarity on the Section’s strategy and funding requirements.
The actuarial valuation as at 31 March 2021 shows the Section is in balance with a funding level of 100%. This is an improvement from the last valuation when the funding level was 92%.
Before agreeing the basis and outcome of this actuarial valuation the Trustee took independent professional advice and consulted The Pensions Regulator.
Later in the year the Trustee will provide Section members with a Funding Update which will include further information about this actuarial valuation.
The effective date of the Section's next actuarial valuation must be no later than 31 March 2024.
The Airbus Section of the BAE Systems Pension Scheme undertook its last valuation as at 31 March 2020 with that Section’s next valuation due no later than as at 31 March 2023.