UNITED TECHNOLOGIES CORPORATION (UK) PENSION SCHEME YEAR ENDED 31 DECEMBER 2024
Financial development of the Scheme
The financial statements have been prepared and audited in compliance with regulations made under section 41 (1) and (6) of the Pensions Act 1995.
Significant developments affecting the financial position of the Scheme during the year include:
The overall value decreased by £140.14m from £1,582.28m at 31 December 2023 to £1,442.14m at 31 December 2024, comprising:
o Negative return on investments £64.57m. o Reduction from dealing with members £75.57m.
Report on actuarial liabilities
promised retirement benefits.
Under section 222 of the Pensions Act 2004, every scheme is subject to the Statutory Funding Objective, which is to have sufficient and appropriate assets to cover its technical provisions, which represent the present value of benefits to which members are entitled based on pensionable service to the valuation date. This is assessed at least every three years using assumptions agreed between the Trustee and the employers and set out in the Statement of Funding Principles, a copy of which is available to members on request.
The latest valuation as at 31 December 2021 was prepared on a market related basis and was signed on 31 January 2023.
A summary of the funding position, in accordance with the Statutory Funding Objective, at the valuation date, was as follows:
Value of assets available to meet technical provisions
£2,535m £2,288m
Value of technical provisions
Past service surplus
£247m
Funding ratio
111%
At 31 December 2023, the Scheme Actuary estimated that the funding position was as follows;
Value of assets available to meet technical provisions
£1,562m £1,459m
Value of technical provisions
Past service surplus
£103m
Funding ratio
107%
Within the actuarial valuation as at 31 December 2021, Asset Backed Funding arrangements were valued at £376.8m. This had reduced to £220.0m as at 31 December 2023 following an assessment of the probability of the Trigger-off mechanism being activated over the period to June 2036. On a basis consistent with that adopted for the latest actuarial valuation, the funding ratio at 31 December 2023 would be 114%.
The next actuarial valuation is due as at 31 December 2024 and this is currently in progress. Until this valuation is concluded, no further data is available on the funding position at 31 December 2024.
The actuarial method used in the calculation of the technical provisions is the Projected Unit Method. The value of technical provisions is based on Pensionable Service to the valuation date and assumptions about various factors that will influence the Scheme in the future. The following significant actuarial assumptions have been used in the calculations:
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