Trustee news

The Fund is stronger than it’s been for a decade

Working with us, the bank has made clear progress in improving the Fund’s position. This includes a funding package of £2 billion from the bank, with a further £1.5 billion of dividend linked contributions payable in instalments from 2020. As a result, the Fund is in a stronger financial position now than it has been for over a decade. This means increased security for members’ benefits.

The most recent published figures for the funding position don’t take account of the new funding package. The figures at 31 December 2017 show the Main Fund Section has assets of £44.8 billion and liabilities of £46.5 billion. This compares to the previous year’s figures of £43.8 billion of assets and £44.3 billion of liabilities. In the RBS AA Section, 2017 figures show assets of £1.16 billion and liabilities of £1.06 billion. This compares to the previous year’s figures of £1.15 billion of assets and £1.08 billion of liabilities. These funding figures are on what’s known as a ‘technical provisions’ basis.

The Main Fund Section will be fully aligned to and supported only by the ring-fenced bank. The RBS AA Section will be fully aligned to and supported only by the NatWest Markets business outside of the ring-fence. This change makes no difference to the benefits that you receive from the Fund.

To support the bank in meeting its ring-fencing obligations, on 1 November 2018 two new sections were set up in the Fund. These are the NatWest Markets Section and the RBS International Section. These sections are supported by the non ring-fenced side of the bank.