Update on the financial health of your pension

For the NatWest* Group Pension Fund (the Fund)

We review our financial health regularly. Our latest check is at 30 June 2020 and we’re pleased to confirm that we continue to be in good shape.

*Reminder: the Fund changed its name from 1 August. See the communication we sent you in late summer for details.

Why this matters to you

The value of your benefits depends broadly on how long you work/previously worked with the bank and the salary that counts towards your pension when you stop work. But monitoring the Fund’s financial health means that over time we can adjust to meet our commitments to all members and reassures you that your benefits are secure and well managed.

If you’re not yet receiving a monthly income from the Fund, check the value of your benefits built up to date and what they mean for your future. Log on to your pension record at www.natwestgrouppensionfund.co.uk > Your pension record > Quotes.

The Fund’s 30 June 2020 results

All four sections remain in good financial shape, despite the market volatility in the first half of 2020. Read more below about the estimated funding positions for each section of the Fund as at 30 June 2020.

Unsure which Section you’re in? Log in to your pension record at www.natwestgrouppensionfund.co.uk > Your pension record.

AA Section

Assets£1,182 million

Liabilities£1,104 million

Surplus£77 million

Funding level107 %

This compares to a funding level of 109% at the last full actuarial valuation (31 December 2017)

NWM Section

Assets£318 million

Liabilities£295 million

Surplus£23 million

Funding level108 %

This compares to a funding level of 91% at the last full actuarial valuation (31 December 2018)

RBSI Section

Assets£95 million

Liabilities£88 million

Surplus£7 million

Funding level108 %

This compares to a funding level of 112% at the last full actuarial valuation (31 December 2018)

How the bank supports the Fund

The bank pays a lot of money into the Fund to pay member benefits. To address any funding shortfalls, the bank pays additional contributions. Read more below to see a summary of the latest contributions.

Additional contributions

AA Section

As there was no shortfall in funding at the last valuation, no deficit contributions were required.

NWM Section

In 2019, the bank paid £52.7 million into the NWM Section.

RBSI Section

As there was no shortfall in funding at the last valuation, no deficit contributions were required.

Ongoing contributionsThe bank also pays contributions to each Section for active members who are still building up benefits in the Fund to meet the cost of other running expenses such as administration and legal expenses. The contribution rates are agreed between the Trustee and the bank as part of the actuarial valuation based on advice from the Actuary. The bank contribution rates, before allowing for any member contributions, are as follows:

AA Section

Members with a Normal Pension Age of 6565.2%

All other members73.7%

Basis for contributions% of Pensionable Salary

NWM Section

Members with a Normal Pension Age of 6538.8%

All other members38.8%

Basis for contributions% of Contribution Salary

RBSI Section

Members with a Normal Pension Age of 6541.8%

All other members41.8%

Basis for contributions% of Contribution Salary

Your questions answered

Select a question to find out more:

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Where to find out more if you want to

Explore the Funding and investment section at natwestgrouppensionfund.co.uk/documents/funding-and-investment. Here you’ll find:

  • More details in the Full actuarial valuation reports.
  • Key actuarial assumptions for the valuations in the Statements of Funding Principles.
  • How much money is being paid into the Fund, together with the Actuary’s certificate which confirms that the Schedule meets current requirements in the Schedule of Contributions.
  • The Fund’s income and expenditure for the latest year in the Annual Report and Accounts.
  • The Trustee’s investment policies in the Statements of Investment Principles.