Earlier in the year, we made another significant investment totalling £1.4bn with two UK-regulated insurance companies known as a ‘buy-in’ or ‘bulk annuity’ policy. These were in addition to the two policies that were purchased last year.
This type of investment aims to increase the security of your pension because it transfers some of the risks being managed by the Trustee to the insurance companies for a large portion of members in the Scheme. These risks include life expectancy, interest rates and inflation.
The Trustee remains responsible for paying all pensions from the Scheme and your pension is not affected. If you’d like to know more about these investments, please click here.