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Atomic Weapons Establishment Pension Scheme

06 July 2022

Proposing MP
Horsham
Type
Written Ministerial Statement
Department
Ministry of Defence

At a Glance

Issue Summary

The Ministry of Defence is creating a new contingent liability associated with providing a Crown Guarantee to the Atomic Weapons Establishment Defined Benefit Pension Scheme trustees.

Action Requested

The MOD has agreed with HMT to provide a Guarantee to ensure the scheme's assets are sufficient to meet its liabilities, and plans to bring the scheme’s assets and liabilities into central government control subject to feasibility study completion. This will be effective from July 21, 2022.

Key Facts

  • The contingent liability will become effective from 21 July 2022.
  • AWE has been sponsored and wholly owned by the MOD as an NDPB since 1 July 2021.
  • The MOD will note a liability of £150 million over 20 years in its accounts.
  • The study will identify accounting and budgeting implications on the MOD, pension law compliance, and value for money considerations.
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