2022 has been another highly eventful year for us all, including for the Trustee Directors of the Fund and for Abbott’s pension team.
As you know, we fully re-launched The Abbott Laboratories Pension Fund website. Member feedback told us that you wanted to see a fresh and modern design, more topical articles on the site and easier navigation to help you find what you need. The new site went live on 8 February and member feedback has been highly positive. We add news articles often. You told us that you did not like needing a password for access, so now there isn’t one.
February also saw the Russian military invasion of Ukraine. The Trustee Directors investigated to make sure that the Pension Fund’s investments would not be threatened by the consequences. You can see the reassuring outcome of this work in the Russia, Ukraine and your Fund Pension article.
The recent dramatic economic volatility has overall been positive for the Fund and the funding level reached an all-time high during the year. There were scary reports in the media about pension funds and the investment approach known as ‘Liability-Driven Investments (LDI)’. The Fund was not impacted because we were not using LDI.
We are very aware of the importance of responsible investment of the Fund. Due to the importance of Environmental, Social and Governance issues we revised and expanded our Statement of Investment Principles. We published, as we do every year, an engagement statement of how we are implementing those principles. They are in the Documents section.
It has been good to see members who are approaching retirement making the most of the facility which Abbott set up with Origen for financial advice on their options at retirement from a fully informed advisor and at a discounted cost. Still, it appears that most members are making their pension decisions without even knowing what all their choices are, and we would encourage everyone to seek regulated financial advice before deciding.
For many people, the recent economic circumstances have made these times difficult financially. The Trustee Directors have no power to pay any benefits above members’ entitlements under the Rules. We would like to remind you of The Clara Abbott Foundation, which is able to help Abbott employees and former employees in various circumstances. You can find information here: Financial Assistance - The Clara Abbott Foundation.
Happily, we have had no changes to the Trustee Board this year. The stability has given us a strong team who have developed good knowledge and understanding of the Fund. Next year will include our regular nomination process for the Member-Nominated Directors. It is a fascinating role. You may like to consider whether you will be a candidate to serve over the coming three years.
On behalf of all the Trustee Directors: Season’s Greetings and very best wishes for success and happiness in 2023.
John Rankin
Chairman of the Trustee