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.
 
Implementation Statement
 
An Implementation Statement (IS) sets out how trustees have complied with their scheme's Stewardship and Engagement Policy over the year. An IS needs to be prepared in accordance with the requirements of the Occupational Pension Schemes (Investment and Disclosure) (Amendment) Regulations 2019. 
 
The Implementation Statements 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 Executive Pension Scheme
  • Royal Ordnance Pension Scheme
  • Royal Ordnance Senior Staff Pension Scheme
 
BAE Systems Pension Scheme: Climate-related Financial Disclosures (‘TCFD’)
 
In 2015, an international treaty on climate change known as the Paris Agreement was signed by 196 countries. The long-term goal of the Agreement is to limit temperature increases to well below 2°C – ideally below 1.5°C. It is widely accepted that doing so will limit damage to ecosystems and human health and wellbeing. To achieve this, the global economy will need to undergo a complete transformation to drastically reduce emissions. This transformation of the economy is expected to create risks and opportunities for companies, and therefore for investors who finance them Investment risks and opportunities are also expected to be created by the physical effects of climate change, for example as a result of the increased frequency of extreme weather events and warmer temperatures. It is now widely believed that such factors should be considered by investors in their decision-making. This includes pension scheme trustees, who should consider how these risks might affect the assets, liabilities, and employer covenant of their schemes. 
 
The DWP has provided recommendations for UK pension scheme trustees for integrating the Task Force on Climate-related Financial Disclosures (‘TCFD’) framework into their investment and governance processes. The Trustees of schemes with relevant assets of £5bn or more have been in scope from 1 October 2021 and must publish the Report on a publicly available website within seven months of the end of the scheme year. The BAE Systems Pension Scheme (“the Scheme”)  has assets in excess of £5bn and therefore is obliged to provide a TCFD report. The deadline for the is 31 October 2022.
 
This report is the  first annual TCFD statement by the Trustee the Scheme, covering the defined benefit (‘DB’) and defined contribution (‘DC’) Sections of the Scheme over the Scheme’s financial year ending 31 March 2022.
 
The Scheme is divided into two separate sections – the BAE Systems Section, and the Airbus Section.   The BAE Systems and the Airbus Sections each have defined benefit (‘DB’) and defined contribution (‘DC’) members. The Governance  section of the report (pages 3-8) explains how this report relates to the different membership categories of the Scheme.  
 
The TCFD report covers how all four elements of the TCFD framework – Governance, Strategy, Risk Management and Metrics and Targets – have been applied to the Scheme. The key points for each element have been summarised in the Executive Summary under the Forms and downloads.
 
Provided here is:
 
  • A message to members from Andrew Gallagher, Chair of the Trustee Board
  • The detailed Report
 
 

Forms and downloads

TCFD - BAE Systems Pension Scheme Summary - 2022 

1.79 MB

TCFD - BAE Systems Pension Scheme - 2022

3.05 MB

Chair's Statement - BAE Systems Pension Scheme - 2022

5.09 MB

IS - BAE Systems Pension Scheme - 2022

300.25 KB

SIP - BAE Systems Pension Scheme - BAE Systems Section - 2020

352.16 KB

Chair's Statement - BAE Systems Executive Pension Scheme - 2022

5.36 MB

IS - BAE Systems Executive Pension Scheme - 2022

244.8 KB

SIP - BAE Systems Executive Pension Scheme - 2020

267.12 KB

SIP - BAE Systems Executive Pension Scheme - DC Section - 2020

654.38 KB

SIP - BAE Systems Pension Scheme - Airbus Section - 2020

255.3 KB

SIP - BAE Systems Pension Scheme - DC Section - 2020

815.66 KB

SIP - Royal Ordnance Pension Scheme - 2022

581.38 KB

IS - Royal Ordnance Pension Scheme - 2022

299.06 KB

SIP - Royal Ordnance Senior Staff Pension Scheme - 2022

256.72 KB

IS - Royal Ordnance Senior Staff Pension Scheme - 2021

122.59 KB