20th October 2022

Current market situation and the implications for your Defined Benefit (final salary) pension

Team meeting

Despite the recent market turmoil, GSK pension schemes' Liability Driven Investments are working as planned.

This means your benefits remain secure.

GSK (who sponsor the schemes) is in a strong position and continues to stand firmly behind the schemes.

Pensions in the news

You may have read articles published in the press about the position of UK Pension schemes during this period of uncertainty in investment markets. In particular, the volatility in UK Government Bond markets and the impact on Liability Driven Investments.

What is Liability Driven Investment?

Liability Driven Investing is an investment strategy used by many UK Defined Benefit pension schemes and involves investing mostly in UK Government Bonds.

The value of your benefits changes when interest rates and inflation change. Therefore, interest rate/inflation changes also change the amount of assets schemes need to hold in order to back future pension payments. Liability Driven Investing tries to manage that change so that schemes are able to pay benefits regardless of market conditions.

How are the GSK schemes impacted?

Despite the recent market turmoil, the GSK pension schemes' Liability Driven Investments are working as planned. The assets remain conservatively positioned and the Trustees and their advisers, are confident in their continuing ability to navigate market uncertainty. Most importantly, member benefits remain secure.

On behalf of the Trustee of the GSK pension plans

October 2022