Disclosure of information relating to BAE Systems' pension arrangements

The Trustees of all BAE Systems pension schemes have to make certain information available to members via a publicly accessible website. In accordance with the legislation governing this area this page has been created to house this information.
The Chair’s Statement
 
The latest Chair's Statement for the BAE Systems Pension Scheme and for the BAE Systems Executive Pension Scheme can be found as pdf documents on the right hand side of this page. They explain how the Defined Contribution (DC) arrangements within each Scheme provide value for members.
 
In summary the Chair’s Statement covers the following:
  • The governance structure around the investment fund options available to members
  • How the Trustee monitors the administration service to ensure core financial transactions are processed efficiently
  • Information regarding transaction charges
  • Confirms the Trustee’s view that the Scheme provides good value
  • An independently scored assessment of the Scheme in the areas of investment, administration and communication
  • Confirmation that Trustee knowledge and understanding is being maintained at the highest level
 
Statement of Investment Principles
 
A Statement of Investment Principles (SIP) is a written statement which sets out the investment policy for a pension scheme.

The Defined Benefit Statement of Investment Principles (DB SIP) for the following BAE Systems pension schemes can be found as pdf documents on the right hand side of this page:
  • BAE Systems Pension Scheme – BAE Systems Section
  • BAE Systems Pension Scheme - Airbus Section
  • BAE Systems Executive Pension Scheme
  • Royal Ordnance Pension Scheme
  • Royal Ordnance Senior Staff Pension Scheme
In addition, the DC Statement of Investment Principles (DC SIP) covering both Sections of the BAE Systems Pension Scheme and for the BAE Systems Executive Pension Scheme, can also be found as pdf documents on the right hand side of this page. 

Each DB SIP (which covers a scheme’s Additional Voluntary Contribution (AVC) arrangement, or legacy AVC arrangements, as applicable) sets out the Trustee's investment strategy, including the investment objectives and investment policies for assets held for the purpose of providing defined benefits and AVCs under each BAE Systems pension scheme (as applicable).

Each DC SIP sets out the Trustee's investment strategy, including the investment objectives and investment policies for assets representing members' money-purchase or defined contribution benefits under the BAE Systems Pension Scheme (save for the legacy AVC arrangements) and the BAE Systems Executive Pension Scheme (as applicable).

For each DB and DC section of the BAE Systems Pension Scheme and the BAE Systems Executive Pension Scheme, the relevant DB SIP and DC SIP together comprise the Statement of Investment Principles required by section 35 of the Pensions Act 1995.