Gilt yields had been increasing throughout 2022, but the recent upward spike is unprecedented.  Gilt yields are important for schemes like ours and articles in the media have suggested that pension schemes may potentially fail as a result.   
 
The Bank of England intervened last week to restore stability to the gilts market and will continue to do so at least until 14th October.  They have announced a programme to buy back around £65bn gilts, which has already reduced gilt yields quite significantly.  
The Trustee has been monitoring these unprecedented events closely and have been assessing the impact on the Scheme.  The Scheme was in a strong position before this upheaval and prompt and appropriate action has already been taken to ensure it remains so.  
 
 The Scheme is backed by the strong BAE Systems covenant and so the Trustee remains confident that they will continue to pay pensions and other benefits despite these exceptional events. 
 
October 13, 2022