In Service Defined Contribution Members

The BAE Systems DC Retirement Plan ('the Plan') is a valuable part of your remuneration package. All new eligible employees become members of the Plan on joining the Company.

This page is designed to provide you with general information about the Plan. If you have a specific question there is a Quick help page or alternatively you can contact the Pensions Service Centre. There is also a link to the Guide to the Plan on the right hand side of this page.

The Plan provides you with a range of benefits to support you and your family both now and in the future. Contributions paid by you and the Company are invested in your individual DC account with Standard Life.
Benefits of the Plan
  • The Plan provides flexibility to allow you to choose options that suit your circumstances and match your future plans
  • The Company pays 6% of your basic salary into a DC account and you pay 4%
  • You have the opportunity to pay an additional 1% or 2%, which the Company will match
  • The Plan provides for a lump sum death benefit of six times your basic salary if you die whilst you are an in service member
  • The Company provides partial income protection for in service Plan members, subject to applicants meeting the relevant insurer's policy terms and conditions
  • Core and Matching contributions to the Plan can be paid under SMART Pensions. Paying your contributions in this way means that you could pay lower National Insurance Contributions.
Monitoring your DC account
You choose how much you pay, where you invest and when you aim to access your DC account to suit your circumstances and future plans. It is therefore important that you take control of your pension savings by thinking about these things. To allow you to keep a close eye on your pension investments, Standard Life's online pensions services are available to all Plan members. These provide information specific to your individual DC account. Once registered for the service, you can:
  • See the current value of your DC account
  • Change your Plan investment funds
  • Access information regarding the funds you can invest in and the historic performance of these funds
  • Use online tools to produce an estimate of the benefits you might receive at your Target Retirement Age (TRA)
  • Investigate the impact of paying different levels of contributions and / or changing your TRA
  • Learn about the retirement income options available to you
After your first contribution has been received, Standard Life will send you a membership certificate containing your individual Plan number, which will enable you to register for their online services via Standard Life. Once you have completed the simple registration process you will be able to manage your DC account online. If you have any problems accessing this service please call Standard Life on 0345 606 0098, between 9am and 5pm Monday to Friday. Alternatively, there is a link to the Standard Life website on the right hand side of this page.
In addition to the online service there is also an Investment Guide which gives details on the basic principles of investing, the funds you can invest your money in and the charges that apply to these funds.
Opting Out
Continued membership of the Plan is not compulsory - you can opt out during the onboarding process or at any time thereafter. The decision to opt out is yours alone. Neither the Company nor the Plan Trustee is permitted by law to give financial advice. You may wish to take independent financial advice before making a decision. Visit Unbiased to find out how to contact your nearest independent financial adviser. If you are considering opting out, please note the following:
  • You will lose the benefit of the Company's contributions into your DC account
  • You will lose the life assurance cover (the sum of six times salary that would be paid to your beneficiaries)
  • You will lose the partial income protection if you have to stop working because of ill-health
  • You will lose the potential opportunity to reduce your National Insurance contributions (if your pension contributions are paid under SMART Pensions)
  • If you change your mind, you can re-join at any time, however evidence of good health may be required to ensure certain insured benefits are not restricted.

Consultative Committees
The BAE Systems Pension Scheme Area Committees exist to promote a better understanding of typical pensions issues which Plan members may face. Representatives of these Committees are able to support members. If you would like to discuss a matter, please refer to the Consultative Committees page for further information and access to contact details of current representatives.