Firstly the 80% of the Longhaul PP24 captains pay is practically 100% of a shorthaul captains basic, secondly when that goes to 95% the shorthaul captains will retire on more than they currently earn ( what a situation that is with a £2.1 Billion deficit to correct ), thirdly I presume BA will be getting rid of the abatement now then for all the members or giving me a 15% increase in my pensionable pay as well - yeah right.
Rimmer
The pensionable pay figure is for calculating contributions from the employee into the fund and the figure used when calculating the pension. e.g Accrual rate of 1/52 for each year of service, say 35 years then the pension is 35/52 x 95% (LH PP24 - abatement). Plainly no pilots will retire on this basis on a figure greater than they were earning.
The abatement is applied to all NAPS pensions. The idea of reducing the pensionable pay is that this portion of pay is already pensioned through the Basic State Pension. So there is no need for the employee nor British Airways to pay pension contributions on this portion of pay.
People are focusing on the pensionable pay percentage as if the figure given for pensionable pay is what you actually retire on! It is not. It is the amount used in ALL calculations. As explained above the figure is used to calculate the retirement pension payable and also, and this is being missed, for calculating contributions. The accrual rates are being lowered and the % needing to be paid is going up.
For goodness sake, the whole exercise was an exercise in damage limitation, nobody is going to be better off on the basis of these changes. Younger pilots will have to work 10 years longer for what they would have earned pensionwise at age 55 before. Older pilots will be less affected.
The GMB and BASSA in particular are spinning this as if the pilots have walked off with a pot of gold at all other employees expense. That is not the case. If the GMB and BASSA believe that rejecting the proposal and threatening to strike will magic more money from the company well dream on. It is entirely possible that the Trustees and the pension regulator will impose a solution should acceptance be rejected. Then it will be seen how this proposal was clearly the best negotiated settlement available.
BASSA in particular are leading their members in collective suicide. The pitiful understanding of the facts of life over the pension alone, not helped by reams of half-truths and spin, is laughable if it wasn't going to lead to such disastrous consequences for their members.