Your Defined Contribution (DC) Plan
The BAE Systems DC Retirement Plan ('the DC Plan') is a valuable part of your employment package. All new eligible employees become members of the DC Plan when they start working for the Company.
The DC Plan provides you with a range of benefits including a Trust Based Pension provided by Standard Life Assurance Limited, to support you and your family both now and in the future. Contributions paid by you and the Company are invested in your Account within the DC Plan.
Hargreaves Lansdown has been appointed to provide a Retirement Service for members with DC and Additional Voluntary Contribution (AVC) benefits, to help them make an informed choice about their retirement options. The service is provided on a non-advised basis. Find out more.
- The DC Plan gives you the flexibility to choose the options that suit your circumstances and best match your future plans.
- The Company pays 6% of your basic salary into your Account within the DC Plan and you pay an additional 4%.
- You have the opportunity to pay in an extra 1% or 2% to your Account within the DC Plan, which the Company will also match.
- You can also pay AVC's and make lump sum contributions.
- The DC Plan provides for a lump sum death benefit of six times your basic salary if you die whilst you are an In Service member.*
- The DC Plan provides partial income protection for In Service Plan members, if you meet the relevant insurer's policy terms and conditions.*
- Contributions to your Account within the DC Plan (excluding AVCs) can be paid under SMART Pensions. Paying your contributions in this way means that you could pay lower National Insurance Contributions.
- You can choose your target retirement age.
*The Death in Service and Income Protection are not provided by Standard Life Assurance Limited. For more information on these products please contact Equiniti using the contact details below.
Read more about the DC Plan in the Preparing for your future – Your guide to the BAE Systems DC Retirement Plan booklet. Standard Life Assurance Limited are not responsible for the content of this booklet.
You choose how much you pay, where you invest and when you aim to access your Account within the DC Plan to suit your circumstances and future plans. It is therefore important that you take control of your pension savings by thinking about these things. To allow you to keep a close eye on your pension investments, Standard Life Assurance Limited's online pensions services are available to all DC Plan members. These provide information specific to your Account within the DC Plan. Register for the service so you can:
- See the current value of your Account within the DC Plan
- Change your investment funds
- Access information regarding the funds you can invest in and the historic performance of these funds
- Use online tools to produce an estimate of the benefits you might receive at your Target Retirement Age (TRA)
- Investigate the impact of paying different levels of contributions and / or changing your TRA
- Learn about the retirement income options available to you
After your first contribution has been received, Standard Life Assurance Limited will send you a membership certificate containing your individual DC Plan number, which will enable you to register for online services. Once you have completed the simple registration process you will be able to manage your Account within the DC Plan online. If you have any problems accessing this service please call Standard Life Assurance Limited on 0345 606 0098, between 8am and 6pm Monday to Friday.
In addition to the online service there is also an Investment Guide which gives details on the basic principles of investing, the funds you can invest your money in and the charges that apply to these funds.
Pension Scheme Trustee
The BAE Systems Pension Scheme Trustee is responsible for managing the DC Plan in line with current law and the Trust Deed and Rules, and looking after the members’ best interests. The Trustee appointed Standard Life Assurance Limited to provide administration services and support for the DC Plan.
The BAE Systems Pension Scheme Area Committees exist to promote a better understanding of typical pension issues which DC Plan members may face. Representatives of these Committees are able to support members. If you would like to discuss a matter, please refer to the Consultative Committees page for further information and here you can access contact details of the current representatives.
Get the most from your Account within the DC Plan
You can choose how much you pay, where you invest and when you want to start taking money from your Account within the DC Plan. The choices you make will affect how much money you could have at retirement.Explore your contribution options >
Continued membership of the DC Plan is not compulsory - you can opt out during the onboarding process or at any time thereafter. The decision to opt out is yours alone. Neither the Company nor the Plan Trustee is permitted by law to give financial advice. You may wish to take independent financial advice before making a decision. Visit Unbiased to find out how to contact your nearest independent financial adviser. If you are considering opting out, please note the following:
- You will lose the benefit of the Company paying in to your DC Plan
- You will lose the life assurance cover
- You will lose the partial income protection if you have to stop working because of ill-health
- You will lose the potential opportunity to reduce your National Insurance contributions (if your pension contributions are paid under SMART Pensions)
- If you change your mind, you can re-join the DC Plan at any time, however evidence of good health may be required to ensure certain insured benefits are not restricted
You're a deferred member if you have left the DC Plan or if your contributions to your Account within the DC Plan have stopped but you've chosen to keep your benefits in the DC Plan.
The Trustee has provided you with the following useful documents. Standard Life Assurance Limited are not responsible for the content of these documents.