| September 12, 2022
Ready to go: BAE Systems’ pension plan is fully funded following its latest actuarial valuation, according to a July update.
An actuarial valuation for October 31, 2019 revealed a funding shortfall of £1.9billion and prompted the defense engineering group to accelerate the payment of £1.3billion in contributions to repair the deficit. That month, the assets and liabilities of six of the group’s plans were consolidated into one plan.
In September 2021, the trustee and the company decided to advance 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 review of the funding strategy and assessment of covenants to be undertaken a year earlier,” a statement on BAE’s pensions website said. Systems.
The latest assessment revealed a funding level of 100%, an improvement from its level of 92% in the previous assessment.
The group’s 2021 annual report said its UK schemes had a range of “longevity risk management strategies” in place. His US pension scheme transferred around $1bn (£856m) in pension liabilities to an insurer in 2020.
The administrator will post a funding update to members later this year. The next actuarial valuation of the plan must be dated no later than March 31, 2024.
The Airbus section of the plan performed its last valuation as of March 31, 2020, with the next valuation scheduled no later than March 31, 2023.
All of its smaller plans are in surplus and do not require group contributions, according to the annual report.