Docusign Envelope ID: 7C50003C-051D-4E0C-907A-F452AD5C4EA2
UNITED TECHNOLOGIES CORPORATION (UK) PENSION SCHEME YEAR ENDED 31 DECEMBER 2023
NOTES TO THE FINANCIAL STATEMENTS
24 Related party transactions
Transactions with related parties of the Scheme comprise:
Key management personnel
G P Smart and A R Smith who are directors of the Trustee of the Scheme are in receipt of a pension from the Scheme in accordance with the Scheme rules. Trustee fees paid in the year are disclosed in note 7.
Employer and other related parties
There have been no direct employer related investments in the year. Asset Backed Funding arrangements are disclosed in note 13. VAT on Scheme expenses amounting to £529k was recovered in the year through participating employers.
25 Contingencies and commitments
In the opinion of the Trustee, except as noted below, the Scheme had no contingent liabilities at 31 December 2023 (2022: £nil).
Investments At 31 December 2023, the Scheme had unfunded commitments to invest via the CIF in Secure Income Funds amounting to £11.0m (2022: £120.0m). These commitments were with the following investment managers;
Aviva £nil (2022: £72.2m)
BlackRock £11.0m (2022: £47.8m)
Review of benefit specifications A review of a number of historic benefit calculations and specifications is on-going, and it has become apparent that adjustments may become necessary to both past and future benefit payments. The Trustee is reviewing, with its advisers, the implications of these adjustments. As soon as this review is finalised and any liability quantified, a communication will be issued to affected members and the financial impact will be accounted for. Guaranteed Minimum Pension (GMP) 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 issues to affected members.
26 Subsequent events
Disposal of Aviva Secure Income Fund investment Following a vote by Unitholders in May 2024, the Aviva REALM Multi sector Fund (Secure Income Fund) entered a managed wind-down period. As a consequence of the wind-down, the CIF has filed a redemption notice in respect of its entire holding. It is anticipated that the wind-down and receipt of disinvestment proceeds might take approximately five years to achieve.
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