BMI FINAL SALARY PENSION D Day
I have been banging on for the last 3 years about acting early about the obvious problems that would occur with the BMI final salary pension and now D day has arrived.
I have also been banging on about the fact that the union should have been asking questions and seeking remedies far earlier. I even mentioned it in this forum but no one thought it was a problem.
Well now the Deputy Chief Executive has confirmed my worst fears that there will be approximately around £21 million pound deficit each year! Perhaps now some of our pilots and union will wake up?
Revised arrangements have to be in force by April 1st, less than one month to decide about something that has been known about since 1999 when there was an 11 million pound deficit recorded.
If early sensible, corrective action had been taken by all concerned, including managment and trustees, we would now not be at this stage.
I have always said that we should be paying more into the scheme, after all it is one of the best in the industry and for me it is the main reason for working for BMI.
Please ensure that you all vote for increased employee contributions (which should have been changed years ago to a far higher contribution). Our 40 % tax rate cushions the blow considerably. Just remember the final return you will get on any increased contributions- it will beat most other investments.
Doing this will also protect this scheme and ensure we all recieve what we have planned to recieve in retirement---Think very carefully, tomorrow always comes and the one certainity is it will be much more expensive than you thought!
PS its interesting to note that our pensions manager has always said there was no problem with the scheme-- one must ask the question, should he be pensions manager?
Still, it can only get worse when Gordon gains power!
Safe landings and pensions to you all!