Doorpost
An excellent question. I wish I had asked it that way.
The company pay 12% and you pay 6% of pensionable pay.
Pensionable pay is based on the long haul basic scale and is 75% of basic for first 4 years, 80% thereafter.
Basic pay pay point 1 is £44040, pensionable pp1 is £33030. Gross about £60K. Basic increases about 4% a year and captains pay is 25% more than FO. The pension calculator that you won't have access to factors in the 4% but not captains pay.
Some rough calculations have been done and assuming command at pp18, the pension fund will be:
After 20yrs, £290K 25yrs, £450K 30yrs, £650K.
You then buy an annuity which might pay about £3.5K to 4.5K per £100K of fund. Because the BARP is contracted into S2P (state 2nd pension) you would get the basic state pension of £5K and S2P of £6K as well (expect government to chop S2P in the future though!).
For 20yrs service the pension calculator quotes a pension of between £6100 and £9180. Then add state pension. So basically PISS POOR.
Note captains basic pay at pp20 is £115406 and pensionable is £92325. Retirement is going to bring one hell of a shock. PP24 is the top.
Other equivalent airlines make contributions based on gross earnings. Cathay 15.5% and 15 years free housing. Virgin 15%. Career earnings about the same as BA.
Our boss has stated there will be no increase to company contributions in BARP. He is also trying to lumber increased future final salary contributions on NAPs members and reduce accrual. The market forces affecting BA at present are: no need to recruit for next 5 years due to retirement age change to 60. No expansion.
You can at least now make a reasoned decision. Acknowledged that there are far worse airlines than BA. You are likely to be able to pay in up to 30% of gross using AVC's from april 06 if you can afford it and/or want to.
