British Airways Pension scheme
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British Airways Pension scheme
Would one of you guys in BA mind telling me how the BA pension scheme works?. .For instance, in my own company we contribute 7% ourselves and the company contributes 21%. The pension is payable at age 55 and is a 'defined benefit' of two thirds your retiring salary.
Is the BA one anything like this? Is Rod planning to change it? Will you guys fight any change?
Is the BA one anything like this? Is Rod planning to change it? Will you guys fight any change?
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At the moment BA has a final salary scheme whereby the max pension is 2/3 final salary. The standard rate of accrual is 1/52 for every year of work but you can contribute more (like me!) and accrue 1/45. I pay 11.25% of my pensionable pay for this privilege.
The hot topic is, of course, that final salary schemes are dead and money purchase the way ahead. BA are, no doubt, looking at this option but nothing has been announced as yet (to the best of my inferior knowledge!)
The hot topic is, of course, that final salary schemes are dead and money purchase the way ahead. BA are, no doubt, looking at this option but nothing has been announced as yet (to the best of my inferior knowledge!)
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Thanks for that Bclam. I thought I read on another thread about BA that they had already stopped offerring the defined benefit scheme to new joiners?. .The deal at my own lot actually looks favourable compared to yours because we get 1/30th per year of service for our 7% contribution. One snag in our scheme is that if you join before 25 you are deducted contributions but don't actually start to accrue pensionable service until you are 25. . .. .So if you join at 20 and work to 55 you get the same pension as someone who joins at 25. . .Not very fair in my view.. . . . <small>[ 03 March 2002, 23:57: Message edited by: maxalt ]</small>
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Moleslayer,. .. .I'm 99% certain that the pension scheme is open to all new employees, pilots or other. I would imagine that we would have heard internally if that were not the case. As BA are not running a particularly large recruiting campaign at the moment the point is somewhat academic.. .. .However it is certain that BA is considering everthing to save dosh. So anything is possible in the future I would imagine, including poverty in retirement for all future employees.. .. .Poverty before retirement for current employees is also a major factor in their current planning. <img border="0" title="" alt="[Big Grin]" src="biggrin.gif" /> <img border="0" title="" alt="[Big Grin]" src="biggrin.gif" /> . .. .Regards. .Exeng
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"Is Rod planning to change it?". .. .Rather depends on how they get on in combining the old and new schemes. The old scheme has a healthy surplus ....the new one a defecit. The company hopes to avoid having to pay to fill the hole by combining the two. The pensioners and those in the old scheme are putting up some resistance.. .. .The driving force for this is of course the new accounting standard FRS17. This loosely speaking forces companies to state their pension liabilities in the profit and loss column of the annual accounts.. .. .I suspect the days of our FSS are numbered for new entrants.. .Hope this helps BP
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Yes there are two and judging from the last post we have a member of the old scheme on board.. .. .The good news is that the existing scheme which still applies to new entrants is Final Salary...which is good. There are however some doubts about its funding which is a cause for concern but, not enough to put you off applying.. .Regards BP
Mistrust in Management
Old scheme: Called APS (Airways Pension Scheme) is a final salary scheme with full index linking. So if inflation reaches 20% per annum (i.e. if Harold Wilson is re-elected. <img border="0" title="" alt="[Big Grin]" src="biggrin.gif" /> ), then your pension also rises by 20%. . .. .New scheme: called NAPS (New Airways Pension Scheme) is a final salary scheme with limited index linking. (Up to a maximum of 5%) The contributions are less than APS but I am not sure by how much. The NAPS scheme is still thought by many so called 'pension experts' to be a fairly good scheme and it does appear to compare very favourably with many other company pension schemes.. .. .Anyway, as my colleague Hand Solo points out it is fairly academic now.. .. .Regards. .Exeng
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Exeng, sadly many BA pilots seem to think ; "we are on NAPS and we'll be OK. Maybe the mgt will drop it for new entrants ( 100% certainty) but we are happy". .. .Well the pressures of FRS mean that's not true!. .One significant risk is that we will keep the benefit of NAPS membership but the pensions will not be "index linked" at all. ie just a percent of the final salary and then no improvement!. .. .Just a quick post to highlight this very real risk so we can all make sure BALPA know what we think of that risk!. .( not that it will prevent it!)
