Certain events are taking place which ROPA is monitoring very carefully on behalf of us all:
- The dramatic fall in equity investments has hit pension funds in general, and BAE’s in particular very hard. The Main Scheme has a high percentage in equities, and must be facing a huge deficit currently. The RO scheme is small fry compared to the Main Scheme, with a much lower percentage in equities, but its deficit will have increased also.
- Rumours were circulating a few months ago about a possible sale of the Royal Ordnance part of BAE, possibly including the pension scheme, following the success of the Lands System business in winning a major munitions order from the UK MoD. In the light of these concerns, ROPA sought on your behalf assurances that there was no substance to these rumours. The Chairman of the RO Pension Fund has since confirmed to us that no discussions have taken place with potential buyers and says “It is unrealistic to contemplate the transfer of the Pension Fund with the divestment of any part of BAE Systems (other than the sale of BAE Systems plc itself ).” This assurance is very welcome to us all.
- BAE is getting more and more involved in the US, and certain commentators have speculated that BAE might become a primarily US company in future. What that might mean for the future security of our Pension Fund is something the ROPA Council is watching very closely.
We have no reason to believe payment of your pension is at all threatened at this stage, but these are all issues that make it imperative that ROPA, the only independent representative of RO pensioners, remains strong, and able to speak to the company on members' behalf. |
See also the Security of the RO Pension Fund |
