Cornflake,
What would help would be if the 2006 actuarial valuation is carried out using the assumption future accrual continues as contracted to NAPS serving staff members. i.e at the benefit level we get at present, 1/52 per year of service for flying staff with a 55 retirement age.
That way we would know by how much the deficit has changed on a like for like basis with the new realistic mortality figures and bond rates of growth.
Then any negotiation with staff groups could be based on fair and correct assumptions.
Instead BA wants to gain the pension concessions before the valuation takes place, so that it gains the benefit, through its negotiated contribution rates with the scheme trustees.
There is no reason why a valuation could not take place now, before next years required one. If you remember valuations must take place every 3 years, but BA brought the 2001 valuation forward to 2000 because it suited them when they were trying to merge APS and NAPS.
Merry Christmas all
Tim Byatt
PS Cornflake, I'll try and find a link with the new Pensions Act 2004 order of payment of liabilities on. I know your AVC payments now have a very high priority compared with the old order.
Cornflake,
I'm not computer literate enough to create a link, but the new order of payments of pension liabilities following the winding up of a scheme is on a pdf by the pru.
Do a UK only Google search for "A new priority order pru" and the first result should be this Prudential pdf with all the details you require.
regards
Tim.
Last edited by Tim Byatt; 24th December 2005 at 16:35.