On the go: The BAE Systems Pension Scheme is fully funded following its latest actuarial valuation, according to a July update.
An actuarial valuation for October 31 2019 revealed a funding deficit of £1.9bn and prompted the defence engineering group to accelerate the payment of £1.3bn in deficit repair contributions. That month, the assets and liabilities of six of the group’s schemes were consolidated into a single scheme.
In September 2021, the trustee and company decided to bring forward the subsequent valuation date from March 31 2022 to March 31 2021.
“This was a positive step for the section as it would allow a full funding strategy review and covenant assessment to be undertaken a year earlier,” a statement on the BAE Systems pensions website read.
The latest valuation revealed a funding level of 100 per cent, improved from its level of 92 per cent at the prior valuation.
The group’s 2021 annual report stated that its UK schemes have a range of “longevity risk management strategies in place”. Its US pension plan transferred around $1bn (£856mn) of pension liabilities to an insurer in 2020.
The trustee will issue a funding update to members later this year. The scheme’s next actuarial valuation must be dated no later than March 31 2024.
The Airbus section of the scheme carried out its last valuation as at March 31 2020, with its next valuation due no later than March 31 2023.
All of its smaller schemes are in surplus and do not require contributions from the group, according to the annual report.
