The Scheme is no longer open to new employees but remains open to existing members. The Scheme provides a pension on retirement and also provides benefits on death.

The Scheme is flexible, allowing existing members as at 6 April 2003 to contribute at one of four levels (levels 125, 167, 187 and 200). Since 6 April 2003 employees have joined Level 100+. In addition to member contributions a generous Company contribution is paid on top.

When you retire, you can choose to take a pension or a reduced pension and a tax free cash sum.

The Scheme is a Final Salary scheme, sometimes known as a Defined Benefit scheme, which means that you get a pension based on your salary near to retirement. Therefore, your standard of living is reflected by your pension. Your pension is not dependent on the ups and downs in the value of investments on the day you retire, like a personal pension plan.

Members of the BAE Systems Pension Scheme are contracted-out of the State Second Pension (S2P), the second tier of the State Pension. This means that the Scheme replaces some of the pension that the second tier of the State Pension would have paid to you at retirement. Your basic State Pension (the first tier) remains unaffected and you remain eligible to receive it in addition to your pension from the BAE Systems Pension Scheme.