Total 2024 £m	Defined Benefit (DB) £m	Defined Contribution (DC) (including Afterwork) £m	Total 2023 £m
Balance at the beginning of the Fund year	Total 2024 £m 24,502	Defined Benefit (DB) £m 22,616	Defined Contribution (DC) (including Afterwork) £m 1,886	Total 2023 £m 27,213
+ Money added in
Employer contributions (including salary sacrifice contributions)	Total 2024 £m 84	Defined Benefit (DB) £m 21	Defined Contribution (DC) (including Afterwork) £m 63	Total 2023 £m 137
Member contributions	Total 2024 £m –	Defined Benefit (DB) £m –	Defined Contribution (DC) (including Afterwork) £m –	Total 2023 £m 2
- Money paid out
Benefits payable	Total 2024 £m 1,012	Defined Benefit (DB) £m 986	Defined Contribution (DC) (including Afterwork) £m 26	Total 2023 £m 940
Payments to and on account of leavers	Total 2024 £m 242	Defined Benefit (DB) £m 143	Defined Contribution (DC) (including Afterwork) £m 99	Total 2023 £m 231
Administration and provider costs	Total 2024 £m 27	Defined Benefit (DB) £m 27	Defined Contribution (DC) (including Afterwork) £m –	Total 2023 £m 23
+/- Net investment returns (including investment expenses)	Total 2024 £m 1,745	Defined Benefit (DB) £m 1,408	Defined Contribution (DC) (including Afterwork) £m 337	Total 2023 £m (1,656)
Transfers between sections	Total 2024 £m –	Defined Benefit (DB) £m (17)	Defined Contribution (DC) (including Afterwork) £m 17	Total 2023 £m –
Balance at the end of the Fund year	Total 2024 £m 25,050	Defined Benefit (DB) £m 22,872	Defined Contribution (DC) (including Afterwork) £m 2,178	Total 2023 £m 24,502

These numbers are from our full UKRF Annual Report 2024, which have been checked or ‘audited’ by KPMG LLP.

For the UKRF’s Defined Benefits (for example in the 1964 Scheme or an Afterwork Credit Account).

Net return on investment was £1.41 billion

This is for all the benefits we manage on behalf of members.

Investing on behalf of members with Defined Benefits is different to investing for Defined Contribution members. For starters, our investment strategy is focused on meeting our liabilities rather than, say, prioritising investment growth.

To help achieve this, we invest in assets whose values are expected to move in similar ways to our liabilities. This helps us keep our ‘funding level’ (the ratio of assets to liabilities) more stable – even when the market is challenging.

This year’s increase in asset values was matched by a similar increase in our liabilities, which means overall, the UKRF’s funding position (and the security of members’ benefits) remains strong. It also tells us that our investments are performing as expected.

How do we decide where to invest?

Our decisions are guided by our Statement of Investment Principles which sets out our overall strategy and investment objectives, including a statement of the Trustee’s responsibilities, what we expect from our fund managers, and which risks we need to manage. Our Responsible Investment Policy is also integral to our investment choices and reflects our commitment to look at all the things that could influence a fund’s performance, including environmental, social and governance factors. You can read about this approach in the dedicated Responsible Investment section of the UKRF website and we will be updating our Responsible Investment Policy in 2025 following a review last year.

With the support of our advisers, we review these decisions regularly and monitor the performance of our assets and fund managers in the context of current market conditions. Close monitoring means we’re better able to recognise and anticipate risks early and ensure that the robust management controls we’ve put in place are working as they should.

What happened to our investments in 2024?

Hopes for lower interest rates at the start of the year were finally realised in summer 2024, having been delayed by central banks’ caution as a result of volatile levels of inflation. Private equity valuations have recovered, with the resiliency of global economic growth supporting corporate bonds.

Geopolitics have been a constant theme throughout the year, adding to the volatility surrounding inflation expectations, driven by activities such as European elections, ongoing Middle East tensions and the prelude to the US election in November 2024.

The Trustee remains comfortable with the broad and diversified range of investments held within the UKRF. We’ll keep monitoring the UKRF’s portfolio, and adjust as needed, to ensure we remain aligned with our long-term strategy.

Asset weighting changes over the period are a reflection of market movement, rather than a shift in asset strategy.

In 2024, compared to the previous year, our investment in:

• Cash assets and LDIs (assets that align to our future liabilities) plus High Quality Credit (lower risk assets, like long-term bonds, that have more predictable cash flows) represented a higher proportion of assets as strong economic data led to rising bond values. This naturally led to other asset classes representing a lower proportion overall.
• High return assets (including private equity and pooled hedge funds) reduced in value, driven largely by currency movements.
• Contractual cashflow assets (assets that provide fixed cashflow at certain times (like the portfolio of solar farms)) represented a lower proportion, despite a positive performance overall.

For the UKRF’s Defined Contribution benefits (including the Afterwork Investment Account) investments.

If you have Defined Contribution benefits, you can choose your own investments from a range of funds. You can see where your Defined Contribution account (including the Afterwork Investment Account) is invested by logging in to your pension account. If you want detailed information about the funds, including their latest performance, you’ll find a factsheet for each fund under the ‘Investment information’ tab.

Remember, you’re saving for the long term.

Your Defined Contribution savings build up over years (decades even), so you should expect economic ups and downs and periods of short-term market volatility. If you see a fall in the value of your Defined Contribution savings because of volatility, it’s important to focus on the long term and not make hasty decisions.

Markets do generally recover over time and making decisions during periods of high volatility, especially if you don’t need to, could have a negative impact on your Defined Contribution savings in the long run. What is important is that you keep an eye on where you’re invested and make sure your choices are suited to your circumstances and retirement aims.

If you’re planning to retire, you need to understand your options and ensure your choices are right for your circumstances. You should consider speaking with a financial adviser authorised by the Financial Conduct Authority to provide pensions-related advice. Visit MoneyHelper if you need help finding one. You can also get free guidance through the government’s Pension Wise service.