The Trustee Boards of the BAE Systems Group Pensions Schemes (BAE Systems) have appointed Hymans Robertson to provide scheme actuary services across all of its pension schemes. The seven schemes, which collectively hold around £21 billion of defined benefit (DB) assets under management, have over 200,000 members.
BAE Systems is an international company engaged in the development, delivery, and support of advanced defence and aerospace systems in the air, on land, at sea, and in space. The company designs, manufactures, and supports military aircraft, surface ships, submarines, radar, avionics, communications, electronics, and guided weapon systems.
In line with the company’s ambition to boost the efficiency and management quality of its pensions schemes, BAE Systems recently held a competitive tender process to find a new, preferred scheme actuary. “In the interests of good governance, we put the schemes out to tender with the objective of hiring one firm to provide scheme actuary services to enable a more joined up approach. We were looking for a pragmatic, collaborative team to work across the individual schemes, with proven expertise and innovation in services, grounded by robust project management skills,” comments Nigel Tinsley, Pensions Director at BAE Systems.
Out of the six firms that were initially involved, BAE Systems at the end of the line picked the services of Hymans Robertson, one of the largest independent actuarial firms in the UK. Tinsley on the rationale behind the decision: “Hymans Robertson’s approach is in complete alignment with our objectives. We had first-hand experience of how they worked through two of our schemes and are confident they will be able to deliver a consistent approach across the relationship with all of them. The firm also demonstrated strong project management credentials and put forward a team that showed the necessary strength, depth and breadth to service the needs of our wide-range of schemes.”
“We’re delighted not only to have retained, but also to have grown the relationship with the trustees of the BAE Systems group of pension schemes. We look forward to helping the trustees deliver their pensions promises to members in a risk-controlled and cost effective framework,” says Ronnie Bowie, Senior Partner at Hymans Robertson. Susan McIlvogue will serve as the Client Relationship Actuary, sitting across all schemes, steering a joined-up team. She will actively facilitate collaboration between the underlying scheme actuaries, who have been appointed by each of the individual schemes from within Hymans Robertson.
Bowie concludes: “Building on the strong foundations and hard work already carried out by BAE Systems’ team of in-house experts, we’ll proactively build a collaborative and transparent working environment, generating trust and consensus across the schemes and with the company and other stakeholders.”