There is a lot of rumor flying around about NAPS and the deficit. We are in need of some facts:
1. The company say the deficit is down to 2 things, living longer and low interest rates. In fact, of the 928 Million deficit, only 75 Million was attributed to living longer. Hardly a huge problem, being less than 10% of the deficit. Low interest is surely a problem, but long term it should even out, if we fix things in the interim.
2. The fact the tax laws have changed have not been discussed by BA at their briefings - this is one of the real problems.
3. We as pilots had no real control over whether NAPS was closed or not. BARP is no good, but how could we have done anything else? We were short of pilots and there would be no recruitment without agreeing on the pension, so what do we do? Watch the company die a slow death while we work extremely hard, or vote for an "industy leading pension" for the new bods, knowing full well that there are hardly any final salary pensions left open in the country.
4. I am in NAPS, not APS, but I don't have any hard feelings for those who are. I can't crystallise, nor do many things they can, but APS closed and NAPS opened. I will work to protect NAPS as that is what I was promised and signed up to. I will work to better BARP too, as you signed up to an "industry leader" not the poor cousin you have been given. The current Pilots are not guilty of ruining pensions, the government and other things are.
5. It is well acknowledged that the pension is in difficulty - I don't think anyone disagrees. What is important is that any changes are reversible. So we might have to reduce accrual and pay more in, but if we can increase accrual and decrease contributions when we are making loads more money, then I can't see a problem. I can see a problem if the fix is irreversible. If it is, then when we start making tons of cash all we have done is give our pensions to the share holders. If we never make tons of cash again - then so be it, at least we will have put in place a way of bettering things when we can.
6. In NAPS, accrual rate was increased a few years ago - this may have been a mistake, it may not have been. Accrual rates have been changed before, so why not change it again and review in a few years time?
7. With a deficit, interest is paid, rather than earned, so almost by definition it will get worse without changes being made.
8. If the pension pays out more than it gets in, if the gap is plugged by BA, then a deficit will continue to form - we do need to determine whether this is a one off, or a constant leak - so far no one has given us a clear message on this.
9. If interest rates stay low "for ever" then no one will be able to afford a house in a few years time. Gold is at a 200 year high at the moment, is that likely to stay too? I doubt it. These things swing one way and the other.