Many of you will be concerned about the current news headlines and the recent market volatility and we want to provide you with some reassurance about what this means for the Plan. 

In terms of the impact of the rising bond yields and subsequent action taken by the Bank of England, we are working with our specialist investment advisers who are monitoring this situation very closely. The Trustee Directors take a long term view of investment strategy, but they do have contingency plans in place for extreme market events. The Trustees have already been in discussions with their advisers and are in a position to act very quickly to protect the Plan if required.   

The HP Plan is a large pension fund, with several billion of assets under management and the Trustee monitors the funding level and these assets at least monthly. The monitoring process ensures that there is adequate liquidity and diversity in the Plan’s assets.  Ensuring adequate cashflow for the needs of the Plan and its investment requirements is the Trustee’s priority.  

Members’ benefits are defined by the Plan rules and are therefore unchanged by short term changes in funding levels.  

We recognise that these are worrying times but can reassure you that the Trustee will continue to monitor the position closely, take advice from its specialist advisers and act where required to protect the Plan.

Paul Early
Chair of Trustees