Funding update for the BAE Systems Pension Scheme - BAE Systems Section

Published
2025-09-17T14:05:26.575+02:00 25 February 2025
Business Pensions
The Trustee of the BAE Systems Pension Scheme (‘the Scheme’) is pleased to announce that agreement has been reached with BAE Systems plc (‘the Company’) on the actuarial valuation for the BAE Systems Section (‘the Section’) of the Scheme as at 31 March 2024.
Funding

An actuarial valuation is carried out at least every three years and is a formal review of the investment strategy and funding requirements, with the goal of ensuring the Section remains well funded. As at 31 March 2024 the Section’s assets (the Section’s investments and bank balances) were valued at £19.2bn and the Section’s liabilities (the expected present value of benefits the Section will have to pay to members and their dependants in the future) were valued at £18.4bn. This means the Section had a surplus of £0.8bn as at 31 March 2024. The previous valuation was undertaken as at 31 March 2021 which showed the Section had a funding level of 100%. The valuation as at 31 March 2024 shows that the Section’s funding level had improved to 104%.

Before agreeing the basis and outcome of this valuation, the Trustee took independent professional advice and consulted the Pensions Regulator. The Trustee will shortly be issuing a funding update to all members which will include more information. The effective date of the Section's next actuarial valuation will be no later than 31 March 2027.

The Airbus Section of the Scheme undertook its last valuation as at 31 March 2023, with the Airbus Section’s next valuation due no later than 31 March 2026.