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BA next after Barclays and Morrisons?

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BA next after Barclays and Morrisons?

Old 5th Jun 2009, 11:05
  #1 (permalink)  
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BA next after Barclays and Morrisons?

It looks like the BA Final Salary Scheme doesn't have long to live.
British Airways won't rule out pension closure - Telegraph
BA are "spunking money up the wall" as they say on the Apprentice!
Or a "pension with wings" as MOL would say.
BA pilots will have to accept its closure if they want to keep flying.
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Old 5th Jun 2009, 12:57
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I found out about it when I pitched up at Meadowbank
What sort of muppet turns up for an interview not knowing what they're applying for?

BTW Meadowbank is a caravan park in Bournemouth, I hope you enjoyed your holiday.
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Old 5th Jun 2009, 13:07
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....and there I was thinking Meadowbank was the old BA recruiting office. Must have dreamt it!

I do remember that very strange recruiting lady!!

Last edited by Right Way Up; 5th Jun 2009 at 13:17.
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Old 5th Jun 2009, 14:00
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As final salary schemes seem to be unaffordable, does this mean the government will do away with them for civil servants as well ?
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Old 5th Jun 2009, 14:54
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Midnight cruiser highlights why the economic future for pilots is dire. There is no desire to pull his/her conditions up to where they were and should be, simply envy and a desire to see others brought down.
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Old 5th Jun 2009, 15:15
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Pension

Final Salary plans cost the employer between 18% and 25% of the employees salary. Corporations invest to make enough money over your working life to fund 27 years paying max 66% of your final salary maybe, if you're lucky, with 5% pa escalation.

The govt does not invest over time for staff pensions, it just pays them willy nilly out of current revenue.
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Old 5th Jun 2009, 15:28
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It'll be interesting to see if Midnight Cruiser wants the "final salary fat cats" to subsidise him when it comes to compulsory redundancies. I'm sure he'll be squealing for everyone else to take some unpaid leave so he can keep his job flying with the fat cats he detests! Maybe I'll pass on that UL, can't spare the money with all that Ferrari polish to buy.

Perhaps all that time off will give him time to ponder how the BACC might realistically have acquired the unique right for new pilots to join a scheme that was closed to every other BA employee.
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Old 5th Jun 2009, 15:29
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What sort of muppet selfishly doesn't attempt to protect the right of new joiners to share the benefits you expect to enjoy?

You.

The 'I'm alright jack' attitude will reap what it sows, and your failure to defend T's&Cs for the newbies will bite you. They'll outnumber you before long and management will have divided and ruled.

Don't expect sympathy from the money purchase guys. You pulled up the drawbridge and sold them down the river.

Enjoy a smaller pension than you expected.
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Old 5th Jun 2009, 15:34
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Take a reality check Monty and then come and join us in the real world. The scheme was over a billion pounds in deficit at the last valuation. Read that again. Over a billion pounds. It'll be three times that this time. IT DOES NOT WORK. THERE IS NO MONEY TO PAY FOR THE PENSIONS ANYMORE. Against that backdrop you think pilots, and pilots alone, can force BA to keep open a scheme which is now nothing more than a gaping hole in the balance sheet that will never be adequately funded. What planet do you people live on?
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Old 5th Jun 2009, 15:38
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Carnage Matey:

You don't come across well.

Not only are you gloating about your (now dodgy) pension and ferrari polish, you now insinuate that last in first out will get rid of all those nasty envious poor people who happened to join the company a bit later than you, doing the same job for a worse deal.

Last edited by Monty77; 5th Jun 2009 at 15:50.
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Old 5th Jun 2009, 15:47
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'You people'

There you go again.

Like you say, at some point the maths won't work, and a guy who is 45 now will be told he (or she, obviously) will not get the pension he expected. About 10 years from now I reckon, when those already in receipt of a pension are protected by law, and the fund cannot pay for those who are about to retire because all the old fellas aren't doing the decent thing and keeling over 2 years after retirement.

Bankruptcy? Company reformed using the LHR slots? Who knows. Only one thing is certain, and that's Govt pensions because today's taxpayers fork out.

I really don't want a p1ssing competition about this and good luck to you all, regardless of where you are. We all know which things in life are certain, and pensions (non-Govt) are not one of them.

Cheers
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Old 5th Jun 2009, 16:27
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Ah yes, but the great thing about 'pulling up the drawbridge' is that you then can't get out to pay the moat cleaner

On a more serious note, if the whole thing goes belly up, then what happens? The government compensation thingy only pays a maximum of 28k.
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Old 5th Jun 2009, 16:28
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My pension is going to be the square root of sweet FA when the fund is wound up in the next 24 months, as it surely will be. Hardly something to gloat about, however I won't be bitching and moaning about how unfair it is or how hard done by I was. Nor will I blithely saying "If only the BACC had done it differently they'd have magicked the economic gloom away". Too many posters on this thread clearly have little understanding of the economic realities of the past 10 years regarding pensions. Having re-read this thread I actually don't think MC even works for BA as they tend to employ people with a bit more commercial nous.

Oh and by the way, apart from the pension, those doing the same job for a worse deal than me are doing it for better money than I ever got thanks to the front loading of all recent pay and pension deals to improve their lot.
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Old 5th Jun 2009, 17:02
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The fund will surely be closed to current employees as well in the near future. CM - I can understand your view - you were between a rock and a hard place in accepting the present arragements for new employees. I don't think is was a pleasant place to be, and it is besides water under the bridge.

My key objection to the closure of DB schemes is the extraordinarily bad deal that private employees (who actually generate the wealth in the country) get in comparison to those in the public sectors - a vast group whom we are directly funding, who in some cases have no fund behind their promised pensions, but are paid from current taxation.

Given the advantages in moving between employers with DC schemes, I would not advocate a return to fairy-tale DB schemes, but a complete and total termination of all DB schemes, particularly public sector promises that are unfunded, and retrospective awards by company CEOs to themselves.

The reality in a world of low interest rates, ridiculous actuarial calculations and other-wordly accounting regulators is the strangulation of British enterprise to the point of suffocation.

No wonder BA is referred to as a pension scheme with an airline attached.
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Old 5th Jun 2009, 17:56
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Happiness is being retired on a fully-funded final salary scheme (which, luckily, has nothing whatsoever to do with BA).

When the bubble bursts, it is not going to be pretty.
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Old 5th Jun 2009, 19:33
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Final Salary Schemes for Civil Servants

At last something within my area of expertise! At present, civil servants who joined before July 2008 do get final-salary based pension (at 60). Those who join after that date get pension based on average career earnings (at 65), and have to make a (modest) contribution toward it. There is political discussion regarding making the civil service pension in future a defined contribution scheme. There is, so far, no discussion of retrospectively reducing the value of pensions in payment, or rights already accrued - so far as I know not in either public or private sector employment. If a pension company fails (Equitable Life) this can happen. At present it is unclear if the Government will have to pick up the slack in such a case.

Whatever the rights and wrongs of all this may be, if pensions to existing retired civil servants were to be reduced, this would be seen as the Treasury defaulting on its obligations, with all that would imply for the ability of the Government to raise money through bond issues.
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Old 6th Jun 2009, 03:11
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Of course the BA pension scheme can't fail, it's too big.

Anyone see another General Motors in the making ?

Remember what happened with the United Airlines Pilots pensions ?

Unfortunately we are looking into a black hole of underfunding where retirements are concerned, not just for pilots. How does the government expect to meet it's committments let alone step in to make up the short fall for everyone else ?

Gordon Browns rape of private pensions a few years ago bought him some short term relief at great cost to those affected, but the cupboard is getting rather bare. Massive committments have been made far in excess of the ability to pay them and the chickens will come home to roost.

The present system is unsustainable. Prehaps individual pension pots for everyone is the answer. Singapores Central Provident Fund would be a good model to base things on CPF Board - Members - Home - my CPF 2.

Employer and employee contribute a set amount to a persons account, a guaranteed interest rate is paid on money left in the account, or it can be used to purchase approved investments, even a house. If you want a bigger pension, you contribute more money. What you've got for retirement is what's in your account. There are no unfunded liabilities because no one is entitled to a final percentage of their salary index linked to inflation. There is no burden on future generations to fund other peoples retirements, just a very strong incentive to take care of your own.

The money accumulated in the fund is invested to pay the interest.

The only thing you can guarantee regarding pensions in Britain is that the politicians ones will be protected.

Whatever the rights and wrongs of all this may be, if pensions to existing retired civil servants were to be reduced, this would be seen as the Treasury defaulting on its obligations, with all that would imply for the ability of the Government to raise money through bond issues.
Easy way around this is to pay the pensions as promised, and then subject them to a special tax. A way was found to rob the private sector pension schemes, the public sector should bear their fair share of the pain.

Last edited by Metro man; 6th Jun 2009 at 07:29.
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Old 6th Jun 2009, 09:32
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Sadly I agree that BA will have to get rid of the pensions millstone around its corporate neck! Whilst I don't truly believe it has been mismanaged I do truly believe that the opportunistic 'end to boom and bust' Gordo Brown has a role in the collapse of all private pension schemes.

His taxation rape of private funds protected by the previous Government has funded his extravagant squandering of cash under Labours burgeoning Civil Service. The 100 Billion, yep, 100 Billion that he has used to prop up our ailing social state and Senior Civil Service golden parachutes, pensions and well covers.

So, once again, those of us who have contributed in good faith to ensure our retirements have been shafted by a Government that, hopefully, won't exist in a few weeks. That is along with the companies, Barclays, Morrisons and BA who have seen their subsequent per employee contributions sky rocket.

In this case I seriously think, although I also stand to be shafted, the company has little choice in the matter.
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Old 6th Jun 2009, 12:25
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We are all doomed

It is indeed possible to cut public sector pensions in payment. The paper referenced describes such instances. I am not sure it would make anyone feel better about their own prospects in either the public or private sectors but it makes interesting reading.


The World Bank and the Attack on Pensions in the Global South
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Old 6th Jun 2009, 12:58
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You pulled up the drawbridge and sold them down the river.
One of the most ignorant comments ever made on this forum!

Do you ever think that BA might just have been the ones who did that?

You don't come across well.
Pot. Black. Kettle.

I suggest you take a good look at how your posts read, although a little bitterness in a failed BA applicant is often to be expected.

For those who want a sensible discussion about how and why various groups of BA pilots ended up on different pension schemes, something that no pilot in BA wanted or sought, please start by providing a realistic and achievable answer to the question asked by Carnage Matey!

Ponder how the BACC might realistically have acquired the unique right for new pilots to join a scheme that was closed to every other BA employee.
The rest of you can continue to spout your usual rubbish.
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