PPRuNe Forums - View Single Post - NATS Pensions (Split from Pay 2009 thread)
Old 20th November 2008 | 17:54
  #1275 (permalink)  
eglnyt
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Joined: Oct 2004
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From: Southern England
There are probably quite a few different ways that the fund could be made viable
If there are post them here and we can see if they are any better than the NATS/NTUS proposal.

The size of the deficit is directly related to the contribution break and reduced contribution levels.
Sorry that is just not true. Throughout the contribution break and any time at which NATS paid less than the underlying rate the scheme remained fully funded. It will almost certainly currently be in deficit at the moment because of the fall in shares but this is the first time and it is not any current deficit which is the problem. The problem is the future liability which could go up by an amount NATS says it can't afford to fund. The three main factors expected to cause that increase in liability are increased life expectancy, an increase in forecast inflation rates and a reduction in the expected rate of return on investments.
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