4. Benefits
The Scheme is primarily a defined benefit pension arrangement in which the majority of members’ pension and other benefits are based on formulae linked to service and earnings with a sponsoring employer.
provided on a defined contribution basis
The Scheme holds assets that provide benefits on a defined contribution basis in respect of a historical bulk transfer of assets and liabilities (known as “TACC Benefits”). In addition, the Scheme also holds a relatively small amount of assets in respect of Additional Voluntary Contributions (“AVCs”) that provide benefits on a defined contribution basis.
Members are given a range of options to select from in investing funds arising in respect of TACC Benefits and AVCs. The Trustee regularly reviews the associated providers and funds offered to members. There is no default arrangement applying to TACC Benefits or AVC funds.
In addition, specific defined benefits for certain members are subject to an underpin calculated with reference to the returns on a notional portfolio set by the Trustee from time to time. There are no assets invested on behalf of members in respect of such underpins.
5. How the SIP has been followed
In the Trustee’s opinion, and in relation to assets backing benefits provided on a defined contribution basis, the SIP has been followed over the year in the following ways:
• The Trustee offers a range of fund options, which give members a reasonable choice to build an investment strategy.
• The Trustee periodically monitors the performance of providers and funds to ensure that they are meeting their stated objectives.
• The Trustee delegates management of Environmental, Social and Governance related issues and risks to the providers of the funds offered to members.
Prepared by UTC Pension Trust Limited
5 March 2025
Version 1
UTC (UK) Pension Scheme | Statement of Investment Principles - Implementation Statement | 5 March 2025
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