Defined Benefit Pension Transfer

BAE Systems Pension Scheme

Do you have an old BAE Systems Pension Scheme you are thinking about transferring into a more flexible arrangement?

Below is a general overview of what the scheme benefits are, these might vary from member to member, depending on what category you belonged to.

If you would like to find out if transferring your pension is suitable for you, why not get started today and receive your free Pension Transfer Guide and arrange a free initial consultation.

BAE Systems Pension Scheme


The information we provide here is our understanding of the pension scheme and may not be the latest, there may also be some detail missing. It is provided in good faith as an overview of the details we hold. There has not been any endorsement or otherwise of these details by the pension scheme, their sponsoring employer or scheme administrators.

This is a partial summary of the complex benefits provided through potentially many schemes, where retirement options can be very different within the same scheme or the same individual sections of those schemes.

If you are either a current or deferred member of the pension scheme and wish specific information about your personal benefits, the scheme administrator will need to be contacted.


Administrator: Equiniti.


Scheme Retirement Age:

The Normal Retirement Age under the Scheme has always been age 65 for both men and women.

Are partial transfers allowed?

A partial transfer is only permitted if the receiving scheme is unable to accept the GMP liability.

Scheme Funding Position:

As at 31st October 2019 the deficit of the Scheme was £1,933m, equivalent to a funding level of 91%.


Increases inline with RPI up to a maximum of 5% for benefit after 5 April 2006 benefits and RPI up to a maximum of 2.5% for benefits after 5 April 2009 benefits.

In certain cases in the 2000 plan section, the pension at the date of calculation is calculated in three different ways, Basis 1, Basis 2 and Basis 3.

The pension payable at retirement will be the highest of the three.

Basis 1 will increase by inflation to a max of 5% for benefits prior to 2006.

Basis 2 pension will not increase.

Basis 3 is by credited interest, the rate of credited interest is determined yearly by the Trustee of the Scheme, on the advice of the Actuary.


Increases inline with RPI to a maximum of 4% for benefits prior to 6 April 1997 and any benefits up to 6 April 2006 by RPI to a maximum of 5%. Benefits after 5 April 2006 by inflation to a maximum of 2.5%.

Flexible Options

Some members may have a protected retirement age of 50 and are able to draw their pension from their 50th birthday.

Death in Deferment

If you die before your pension starts to be paid, the death in deferment lump sum can vary. This can range from the greater of 5 times your pension instalments and the total of your contributions paid into the scheme OR one and a half times the total contributions to the Plan, with credited interest.

This depends on which section of the scheme you are in. spouse’s pension of 50% of their pension accumulated to date of death is also payable for all members.

Death in Retirement

A spouse’s pension of 50% of the pension prior to commutation, plus increases in retirement. If the member dies within 5 years of the pension commencing, the remaining monthly instalments will be paid to the beneficiaries, either as monthly payments or as a one off tax-free lump sum.

Need BAE Systems Pension Transfer Advice?

If you are a member of the BAE Systems Pension Scheme and would like to know if transferring or cashing in your pension at 55+ is suitable for you, why not get started today and receive your free Pension Transfer Guide and arrange a free consultation.

Grove Pension Solutions Ltd is regulated by the Financial Conduct Authority and specialise solely in defined benefit pension transfer.

Pension Transfer Consultation

Get Started Today

Free Pension Transfer Guide & Consultation
If you would like to find out if transferring your pension or taking a cash lump sum is suitable for you, we can provide a free initial Pension Transfer Consultation known as abridged advice.

Simply complete your details below, and we will send you our Pension Transfer Consultation Pack and Enquiry Form.

As part of the consultation we will look at:

  • What existing pension plans you have in place.
  • What your plans are for retirement.
  • Your needs for flexibility and control.
  • The likely cost of more in-depth advice.

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Defined Benefit Pension Transfer Warning

Transferring away from a defined benefit pension scheme means you will lose valuable guarantees.

Taking benefits early will almost certainly reduce your pension income in retirement and is only suitable for a limited number of people and circumstances. This should not be seen as an easy option for raising cash.

If you release all your money from your pension early you will not have anything left to provide you with income in retirement.

When releasing cash from your pension, usually up to 25% is tax free, the balance is taxed at your marginal rate at the time and could change in the future.

Watch the FCA video explaining the expectations of financial advisers when advising you on defined benefit pension transfers.

Grove Pension Solutions Ltd is authorised and regulated by the Financial Conduct Authority (Reference number 465051).

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