PPRuNe Forums - View Single Post - BA pension deficit £3.7bn....!
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Old 14th Dec 2009, 22:36
  #28 (permalink)  
ScotsAndy
 
Join Date: Aug 2008
Location: Edinburgh
Age: 65
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Its obvious some of you don't understand Pensions.

A pensions pot of £1.8M, assuming it was a Final salary related pension scheme simply identifies the level of funds required to meet the liability that has built up in respect of the member of the scheme. These type of schemes bear the investment risk, not the individual, as in money purchase arrangements.

The shortfall in solvency of the scheme relates to the inability of the Employer/Trustees to have met the funding requirements of ensuring 100% solvency of the scheme - due to either the failure of investment growth, insufficient employer funding and/or the fact folks are living longer !

Probably a combination of all three (and a lot of other factors) !

It is unfair and disengenious to slur the pilots involved - they are members of a scheme originally designed to meet the promises made to them of a healthy retirement - a commitment made to them as part of their contract - it's just very expensive !
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