Your pension continues to be well funded, despite rising interest rates
The investments the Fund uses to back your pension include UK government bonds. These bonds have been in the news recently because of rising interest rates
In the short-term, the value of these bonds has fallen. However, this has not affected our ability to pay for your pension.
In fact, rising interest rates mean we expect to receive higher investment returns from these bonds in the long run. Therefore we won’t need to invest in as many bonds in the future.
Your pension is safe. The Fund remains financially secure, and continues to be well managed by the trustees. And your benefits are guaranteed by the Fund’s participating employers, who will contribute to the Fund if it ever needs any extra money.