Pension news releases

During 2025, in line with good governance expectations, the trustees of the four BAE Systems defined benefit pension schemes initiated a formal review of their actuarial services provider arrangements.

The BAE Systems Pension Scheme needs a variety of actuarial factors to apply to benefits, for example if you choose to take your pension earlier than your Normal Retirement Date or choose to exchange some of your pension for tax-free cash at retirement.

Do you want to boost your pension savings before the end of the tax year? As well as being able to pay Additional Voluntary Contributions (AVCs) at any time from your salary, you can also choose to pay some or all of your annual bonus as a lump sum AVC.

The BAE Systems Pension Scheme is flexible and allows you to change the basis upon which your pension builds up each year for members of the BAE Systems Pension Scheme – Level 125, 167, 187 or 200 Benefits, Alvis Benefits and SIPS Benefits (VSEL and Portsmouth)

We are delighted to announce that the BAE Systems Retirement Savings Plan, our defined contribution pension scheme, has again been awarded the prestigious Pension Quality Mark. This is a nationally recognised accreditation that confirms the high standards and quality of our scheme.

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.

The BAE Systems Pension Scheme uses a variety of factors to convert one benefit into another, for example if you choose to exchange some of your pension for tax-free cash at retirement or if you transfer your pension to another arrangement.

The BAE Systems Pension Scheme is flexible and allows you to change the basis upon which your pension builds up each year for members of the BAE Systems Pension Scheme – Level 125, 167, 187 or 200 Benefits, Alvis Benefits and SIPS Benefits (VSEL and Portsmouth)

The BAE Systems Pension Scheme uses a variety of factors to convert one benefit into another, for example if you choose to exchange some of your pension for tax-free cash at retirement or if you transfer your pension to another arrangement.

On 1 January 2024, Aptia UK Limited (Aptia) purchased Mercer's UK pension administration business. As a result of this change, your pension benefits are now being administered by Aptia. If you are a member of a BAE Systems UK Defined Benefit pension scheme you will start to receive communications referring to Aptia. 

It is important that the Trustees of the BAE Systems pension schemes perform regular tracing activities, this is to verify the continued existence of our members and also to ensure up to date address details are held. Target work alongside the Pensions Administrator to carry out tracing activities for all members.

This update follows on from the article dated 15 November 2023 and subsequent letters issued to all Defined Benefit UK pension schemes pensioner members. We understand that a number of pensioners have been issued with a new tax code since the automatic connection between the pension schemes administrator, Mercer, and HMRC was re-opened earlier this month. If on receiving your BAE Systems pension at the end of November or early December you have a query about the tax code HMRC has applied, the next three paragraphs of this update outline the action you should take, explain why and point you to the guide we have prepared to help you if you need to contact HMRC.

Following on from the article dated 5 September and subsequent letters issued to all pensioner members of our UK pension schemes listed below in September, we can now provide an update regarding our BAE Systems’ UK Defined benefit pension schemes and the tax codes applied to them. This update is also being sent to all pensioners in a letter being issued week commencing 20 November.