We regularly check how much money is in the Scheme (our assets) and how much might be needed in the future to pay everyone’s benefits (our liabilities). The Scheme’s actuary reviews the Scheme formally every three years. This is known as an actuarial valuation and the last valuation of the Scheme was on 30 September 2022.

In the years in between valuations, we issue a funding update. This year’s update summarises the funding position of the Scheme on 30 September 2024.

Our funding level has remained about the same
The table below shows the results from the latest funding update. This includes how the Scheme performed since the previous funding update, which showed the position on 30 September 2023. The funding level shows the amount of money we hold (our assets) against the amount we need in order to pay members’ benefits (our liabilities).

As you can see, both our assets and liabilities increased over the year, and our funding level has gone down very slightly from 111% to 110%. A funding level over 100% means we estimate that we still have more than enough to continue paying members’ benefits, now and in the future.

Our investment strategy continues to work well
Like many other pension schemes, the Scheme holds some of its assets in government bonds. This means we loan money to the government. We do this because bonds are considered one of the most secure places to put money.

The Scheme’s investment strategy is designed so that movements in the assets are matched to changes in the liabilities, and this has continued to work successfully despite changes in interest and inflation rates over the year. This has resulted in a broadly unchanged funding position since our previous update.

Our second way of valuing the Scheme also shows a strong position
There’s another way to value the Scheme which we are required to do by law. We look at how much we would have to pay an insurance company to pay members’ benefits if the Scheme were ever ‘wound up’ (there are currently no plans to do this).

At the time of the last valuation at 30 September 2022, it was estimated there would have been a deficit of approximately £0.11 billion if the Bank stopped supporting the Scheme on this date and the Scheme was transferred to an insurer. Based on the latest update at 30 September 2024, it is estimated that this gap has been closed. So the Scheme would have approximately enough assets to meet the full cost of paying an insurance company to provide members’ benefits.

This way of valuing the Scheme allows for insurers taking a very cautious view of the future and the fact that they need to make a profit. This can change over time as insurance companies change their prices.

How money comes in and out of the Scheme

The Scheme works as a fund that pays pensions and some lump sum benefits to all members and eligible dependants. The money in that fund comes from:

• our investments, which are managed by the Trustee
• contributing members of the Scheme
• the Bank, which pays contributions for a small number of active members who are still building up their benefits, and for the cost of the Scheme’s expenses

The contribution arrangements we have with the Bank are being reviewed as part of the next formal valuation. Work for this began on 30 September 2025.

There have been no other changes since our last update
We’re legally required to inform you that, since our last update, the Scheme hasn’t paid any money to the Bank. The Pensions Regulator hasn’t modified the Scheme and hasn’t imposed any directions or a schedule of contributions on the Scheme.

Want to know more?

You’ll find more information about how the Scheme works on our Downloads page.

Read about your pension and climate change
Our Climate Change Report outlines how the Trustee monitors and manages climate-related risks and opportunities. Read it online or ask Capita to send you a hard copy.

Plus you can download our:

• Statement of Investment Principles (SIP): how the Trustee invests the money you pay into the Scheme.
• Implementation Statement: how the Scheme follows and acts on the principles outlined in the SIP.