HZ123,
No chance of being bought out I should think - whoever were to do so also buys the pension debt! One pensions analyst did suggest BA's best forward going business plan was to liquidate the company. Pension scheme lost, then start afresh a new company. Never would be allowed to happen of course, but has a business sense to it given the scale of the pension debt that BA faces.
After the pension legislation changes in April, Trustee boards now have to negotiate and AGREE a pension recovery plan with the employer following actuarial valuation. The Pensions Regulator has said that any recovery plan longer than 10 years, would trigger an in depth investigation of the scheme by themselves. Given the size of the blackhole, it's difficult to see that being achieved..........
General comment:-
Remember this is not only a BA pension crisis! All final salary schemes have suffered the same fate. My charter airline has committed large sums of extra money to the scheme over the next few years, and has already input a large amount. We will however suffer the same type of increase in the blackhole as BA at the next valuation for reasons stated in previous post.
Over the last 2 years, our pilot workforce has been pushed into nearly 50% increased contributions by members. Although scheme NRD is 60, you could go at 55 without penalty (only using pensionable servic figures to 55 of course). This was taken away, and now early retirement takes a penalty of 6%/yr from your pension. So, go at 55, and be offered pension rights to 55 minus 30%!
All this was consulted on through BALPA at New Road! BALPA told us the pension problem was everyones problem, and for things to work we ALL had to recognise pensions, life expectancy, etc had changed. The changes were implemented with BALPA doing 'roadshows' alongside the company to recommend the change!
I do find it pretty disgusting, that now it's BA, suggestions of increased members contributions, extended working are all so totally unacceptable. When other parts of the industry were looking for support was it available - were BA pilots interested as long as they were ok? I think you already know the answers...............
Sorry, but for those of us who alreday have had their pension conditions changed with BALPA's support aren't going to be lending weight to BA keeping all theirs
Good luck though!
30W