BA Company Contribution
BA Letter states that the company will pay 12% of pensionable salary and the employee must pay 5% of the same.
As stated by Nigel on Draft, BA pensionable salary is 75% of basic pay (excl any allowances).
The wording in the BA Retirement Plan documentation reads more like the employee pays 5% and the company will make this up to 12% of pensionalble salary!!!
I have been assured by personnel that the letter supercedes the plan documentation.
BTW Where does the definition of Pensionable Salary come from?
According to the Inland Revenue, it is defined as the salary uopn which pension contributions are made (how helpful).
Where have BA come up with this arbitrary 75% from? Is it 75% at each pay pont and how are training / management increases factored in?
For Info: In Virgin, as long as the employee pays in 6%, then the company will pay in 15%, again all of pensionable salary. The big difference is that in Virgin the pensionable salary is the Basic Pay excl. allowances/flight pay.
I underrstand that the BA DEP DC scheme is still not finalised and that BALPA are hoping for a bigger company contribution.
At least if the pensionable salary equalled basic pay (which is slightly less than in VS for starters!) then we'd be on the road to a more comparable scheme to other companies, if still a way off industry leading.
Surely the company can afford to put more in as the main reason for having a DC scheme over a DB scheme is that the company is not liable to make up any shortfall in the investment. The current offer is way short of the final salary scheme so must be saving BA a fortune as well as reducing future liability. Shame it's at the expense of the staff.