Docusign Envelope ID: 7C50003C-051D-4E0C-907A-F452AD5C4EA2
UNITED TECHNOLOGIES CORPORATION (UK) PENSION SCHEME YEAR ENDED 31 DECEMBER 2023
TRUSTEE’S REPORT
Equalisation of Guaranteed Minimum Pension (GMP) liabilities
In October 2018, the High Court determined that benefits provided to members who had contracted out of the state second pension must be recalculated to reflect the equalisation of state pension ages between May 1990 and April 1997 between men and women. In November 2020, a further ruling by the High Court determined that transfers out of a scheme in respect of members who had contracted out of the state second pension must also be recalculated to reflect the equalisation of state pension ages between May 1990 and April 1997 between men and women. The Trustee is continuing to review, with its advisers, the implications of this ruling on the Scheme. As soon as this review is finalised and any liability quantified, a communication will be issued to affected members.
Investments
The Trustee has produced a Statement of Investment Principles dated 22 August 2023 (which replaced the previous version dated 27 September 2021) as required by Section 35 of the Pensions Act 1995 and a copy is appended to this annual report and financial statements. All Scheme investments are held within The UTC Common Investment Fund (‘ CIF ’) except for Asset Backed Funding arrangements and Insurance policies relating to Sutrak section members as detailed below and Additional Voluntary Contributions (‘ AVCs ’) . The day to day management and the safe custody of the Scheme's investments has been delegated by the Trustee to UTC Pension Trust Limited, the Administrator of the CIF (‘the CIF Administrator’) as shown on page 3 of this report. The CIF Administrator oversees the CIF on behalf of participating pension plans of RTX Corporation in the United Kingdom. The Statement of Investment Principles agreed by the Trustee of the Scheme determines the parameters within which the Administrator of the CIF must act in respect of the Scheme. Having regard to the Scheme’s Statement of Investment Principles, the CIF Administrator prepared a n Investment Implementation Policy. A copy of the latest Investment Implementation Policy agreed by the CIF Administrator is dated 2 February 2024 and a copy is available on request. In the event that more than one pension scheme participates from time to time in the CIF, the Trustee holds separately identifiable assets within the CIF rather than a single holding representing the total value of the combined asset classes. This gives the Scheme flexibility in the selection of asset classes.
The CIF report and financial statements for the year ended 31 December 2023 are appended to this annual report and financial statements.
Throughout 2023 and as at 31 December 2023 the Scheme was the only current participating pension scheme within the CIF.
The Scheme’s investment strategy is set out in the CIF report and financial statements.
The investment managers are remunerated through unit pricing or on an invoice basis, based on the value of investments under their management. Where unit pricing results in charges that are greater than amounts agreed between the Scheme and the manager, rebates are received as cash or additional unit holdings. Investment manager fees are reviewed on a periodic basis by the CIF Administrator.
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