1 Introduction
1.1. This Statement of Investment Principles has been prepared by UTC Pension Trustee Ltd (‘the Trustee ’) of the United Technologies Corporation (UK) Pension Scheme ( ‘ the Scheme ’ ). It sets down the principles that govern the decisions about investments that enable the Scheme to meet the requirements of:
• the Pensions Act 1995, as amended by the Pensions Act 2004;
• the Occupational Pension Schemes (Investment) Regulations 2005 as amended by the Occupational Pension Schemes (Investment) (Amendment) Regulations 2010;
• the Occupational Pension Schemes (Investment and Disclosure) (Amendment and Modification) Regulations 2018; and
• the Occupational Pension Schemes (Investment and Disclosure) (Amendment) Regulations 2019.
1.2. The Scheme is a defined benefit arrangement, with a smaller proportion of funds accrued in respect of Additional Voluntary Contributions (‘AVCs’) and historical transfers invested on a defined contribution basis. This Statement focuses on the principles governing the investment of assets backing defined benefit liabilities. The approach taken for assets supporting benefits provided on a defined contribution basis is discussed in Section 11.
1.3. In preparing this statement the Trustee consulted Ceesail Ltd (‘the Principal Employer’) as well the Principal Employer’s ultimate parent, RTX.
1.4. The Trustee has obtained associated investment advice from its investment consultant, Barnett Waddingham LLP. Barnett Waddingham LLP is authorised and regulated by the Financial Conduct Authority.
1.5. This statement has also been prepared with regard to the 2001 Myners review of institutional investment (including subsequent updates), and relevant scheme funding legislation.
1.6. The investment powers of the Trustee are set out in the Trust Deed and Rules dated 2 January 2009, as amended. This statement is consistent with those powers.
1.7. The Trustee will review this statement at least every three years or if there is a significant change in any of the areas covered by the statement.
2 Governance arrangements
2.1 The Trustee has ultimate responsibility for decision making in relation to the Scheme’s investments and, in particular, for setting the Scheme’s benchmark asset allocation and target hedging ratios.
2.2 T he Trustee invests the majority of the Scheme’s assets through a common investment fund – the UTC Common Investment Fund (‘the CIF’). The CIF allows the Scheme’s assets to be managed in common with those of other pension arrangements associated with the participating employers and the wider group.
UTC (UK) Pension Scheme | Statement of Investment Principles | 22 August 2023
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