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Gas Paths words on his pension briefing echo my thoughts,
However as I understand it pensions in payment are ring fenced, ie money is earmarked outside the fund for retirees. However this does not apply to any future indexing.
So yes I expect even APS to be in deficit, but of course NPS must be in an even worse state. I believe this total deficit to be circa stg 3B.
However if BA does decide to close NAPS completely at least they start to crystalise the loss and please the city. This may? allow them to borrow their way out of this crisis.
They are still liable for outstanding pension debts but this could be spread over many years, (approx 50% in years of the last claimant)
However if they go bankrupt, this will allow them to escape this committment, as the government pension protection kicks in, This does have an upper limit stg 29K I think & indexation of 2.5% max
As I said earlier I don't think the goverment scheme has enough funding.
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