Historically turnover in UK airlines has been minimised by the provision of the Final Salary Pension Funds and the Seniority Schemes. Combined, the two encouraged pilots to remain in a company and wait their turn for a Command.

With the demise of the FS Pensions I wonder if the time has come to modify or abandon the Seniority System and encourage pilots to move employers more often, thereby driving salaries and conditions up.

It is interesting to see in last Sunday’s papers that one of the reasons for easyJet taking over of Go was that they were unable to recruit sufficient pilots to facilitate their expansion.

Sky9

Not sure the last part of your post is true. I'm ex-RAF VC10 5000 hours TT applied to easyJet in early Feb and haven't heard a thing, not even a "thanks but no thanks" email. At least Go said only recruiting type rated at the mo but we'll keep your CV on file for later.

I too hope that other airlines don't follow BA down the pension route - only time will tell but I do wonder in this instant age that we live in whether the recent poor performance of the stock market is a valid reason for scrapping the final salary scheme? Surely the whole point of investment is long term planning and if we are living longer either make us work longer or reduce the payouts/increase personal contributions to new comers but not scrap them totally!

Oh dear, Oh dear, Oh dear, Oh dear!

The last plausible reason for joining BA has finally gone. The bubble has indeed burst.

I have watched with some degree of fascination the postings from the idiots who have never been hungry protesting furiously that they could never ever demean themselves to join the likes of Ryanair or easyJet - they obviously like working in pubs.

From here on in you are going to have to join a money-purchase scheme and that means that the more you can put in your kitty the better it is going to be (always assuming that there isn't a stockmarket crash the day before you retire)!

Therefore, if you have anything useful to offer an aviation employer, it would make sense to go to those who offer the best basic salary. (Expenses don't count).

On the subject of which; I have an ex-BCAL mate who was taken over by BA. He spent his first 24 hours at Heathrow being taught how to "work" the BA allowance scheme. One little wheeze was to "pair-up" with a mate on the 747. When your mate was on "instant standby" and you were on a Far East flight, you would ring in sick at the last moment. He would then get called out at short notice and this was worth £3000 to go to HKG and back. After a decent interval, the favour was reciprocated.

Now I personally think that this sort of practice is quite disgraceful, immoral and indefensible and I was particularly offended by such events when BA was a state airline and I was paying a hell of a lot of income tax so that they could me out of a job.

PS. I have only missed 2 flights in the last 14 years due to sickness. Some of you youngters should realise that every time you pull a "sicky" you screw someone else's life up (unless you are in BA and it is all pre-arranged).

JW411

I think that your ex-BCAL mate was pulling your leg.

Airclues

JW411

I have been in BA for 15 years, 11 of them LH and apart from never having heard of the scam you mention I have rarely witnessed anybody reporting sick downroute except for very valid reasons, in fact it is something that is done with marked reluctance. Good story though.

If you care to take a step back do you really think that the majority of BA pilots are any different from pilots in any other airline? Most of us have the same morals and concerns as anybody else.

A final point, getting called from standby to go to HKG would not attract anything like £3000, not even close!

Quite, and I think it would raise a few eyebrows when you're called before your manager to explain why you've been absent three times in the last six months (its called an attendance management program don't you know).

Anyway, its perfectly acceptable for the 'youngsters' to have their life screwed up on a daily basis by a seniority system!:cool:

Is a buy-out possible?
 

Just wondering, is it now possible that BA will come amongst those still on the Final Salary scheme and try and buy them out if they agree to go to the new scheme? There are always some who will take the money.

And what better way to get back to health than a discussion with your manager to ascertain if there are any 'problems' keeping you away from work.

The attendance management programme was not intended to target pilots but CC due to their propensity to be ill whenever an unpopular trip lommed.

It had to be introduced company wide to avoid being seen as unfairly targeted.

Usual braod brush approach.

Sadly, Final Salary pension schemes have been on the way out for years (even before the Chancellor started dipping his sticky little fingers into the funds). They're a wonderful solution for those who can work for 20, 30, 40 years in the same job - but most of us no longer have any realistic expectation of that.

If you change jobs (by design or otherwise) every few years then building up your 'own' pot of money is the best solution (though you'd probably have to save 30% of your salary to achieve anything close to what you'd get from a final salary scheme).

From what I read (and remember I just sit in the back and let you get on with the driving), BA pilots are one of the last major groups of UK employees who do expect/hope to stay in the same job for life. If you are of that opinion, you'll be much better off with a final salary scheme - but do you honestly believe that's a realistic expectation for a new recruit?

Pax Vobiscum

(Lapsed actuary with 20+ years in the insurance industry)

Captain Airclues:

"I think that your ex-BCAL mate was pulling your leg"

I think not; he regaled several of us in the pub for nearly an hour on the subject. Frankly, he was as incredulous as the rest of us. This was some time ago and if the practice has ceased then I for one am very pleased.

M.Mouse:

".....reporting sick downroute....."

That is not what I meant or what I thought I said. The wheeze was to call in sick (when not sick) from home a few hours before reporting to start a long Far East series of flights.

I quite agree with you that if you are sick then you are sick and should certainly not go near an aeroplane. This played a part in the incident when the BA 747 almost demolished the Penta at Heathrow if my memory serves me right.

".....do you really think that the majority of BA pilots are any different from pilots in any other airline?"

I am sure you are right in saying that a lot of BA pilots are just the same as the rest of us. However, you have had more than your fair share of absolute pillocks as well.

My crew and a BA crew got into conversation in my favourite watering hole in Dubai one night. The BA captain told me that it must be awful for me not having the opportunity to fly for a proper airline!

One of the Atlantic barons is a fellow-member of one of the aviation interest groups to which I belong. He is absolutely insufferable (and is also the most boring after-dinner speaker I have ever had to listen to)!

Another Atlantic baron told me one night in New York that BA and Pan American were the only true professionals on the North Atlantic. I thought that was a bit rich since he had exactly the same triple INSs and flew the very same NAT tracks that I did.

A few weeks later a BA Tristar crew forgot to update their waypoints and watched as the aircraft describe a 180° turn in the airway as it went from Waypoint 9 back to Waypoint 1 which was the first point after take-off from Heathrow! The result was that they nearly collided with a DC-9 (?) coming down the airway behind them at the same level.

It did not seem to occur to either of these "professionals" to put the automatics into basic heading mode so that they were heading in roughly the right direction while they sorted their problem out.

JW411

Are you related to 411A?

I wish that a HKG trip was worth £3000 but unfortunately it's not even close. Of course the pilot who went sick would lose all the FHR and allowances so I can't see the advantage.

There is a rich variety of characters in all airlines. However, the 'Atlantic Barons' of days gone by are no longer tolerated by the modern, post CRM, society.
The vast majority of BA pilots have immense respect for our colleagues in other airlines. Over the history of PPRuNe here have been many 'anti-BA' posts, but very few BA pilots reciprocate.

Anyway, I thought that this thread was about pensions!

Airclues

This thread is about pensions, it's also about diminishing conditions in the industry. If BA wants to change to a defined contribution scheme then BALPA must be very diligent in ensuring the contribution level is high enough. If it isn't members will find themselves seeking employment after retirement, not because they want to but because they have to.

If what is assumed here is true, that it's a done deal then the only avenue you will have to ensure adequate retirement money is to fight hard for a decent employer contribution level. If it isn't high enough you will find that more of your current disposable income will be needed to save for retirement instead of using it for frivolous things like food and shelter now.

Watch this one carefully folks or it will bite you in the arse.

I left bmi's final salary pension scheme (which is also closed to new entrants) to join ezy and am now in their money purchase scheme.

On the final salary forecast from the bmi scheme as an FO I'd receive a pension in today's terms of £25k. I paid a contribution of about £200 of my salary towards the scheme.

To achieve the same thing with easy it will cost me £550 extra. £750 per month out of your salary is a lot. Especially when I have well over 30 years still to run. :mad: :o :eek:

Don't regret my move to my new employer but I wish I was still in bmi's pension scheme!

Think very carefully about leaving those schemes!

I hope BALPA protects all those left in FS schemes when your numbers dwindle. :(

PS JW411 if you want to go on about expenses in BA take it t o a new thread. Pensions are a bl**dy important topic and we should all be aware of the implications of the closure of final salary schemes.:mad:

JW411

You said:

"I think not; he regaled several of us in the pub for nearly an hour on the subject. Frankly, he was as incredulous as the rest of us. This was some time ago and if the practice has ceased then I for one am very pleased."

It sounds as though he enjoyed the attention. The point being the practice didn't exist as far as I am aware.

Going sick at home would mean that the person going sick would lose all the allowances and flying hour pay and the chap being called from standby would be paid those allowances and flying hour pay. Absolutely no gain or loss to the company. One pilot worse off, one better off. What would be the point?

Couldn't agree more about some of the pillocks you mention, in fact I think I know at least one you mention!

Out of the now 4000+ pilots in BA we do have some real idiots. Certainly the proportion seems no lesser or greater than my last two companies.

I think you would be suprised how normal most of us are.

Anyway back to pensions.

As the lapsed actuary says the writing has been on the wall for some time.

At risk of stirring up the hornet's nest now that those in NAPS realise that there FSS is under threat they may well regret taking less interest in the now defunct proposed APS/NAPS merger. Had it happened it might well have safeguarded the NAPS final salary scheme.

Never really did get a satisfactory explanation why BALPA initially gave a £100,000 contribution to the APS anti-merger group to fight the proposal.

Just a quick question, to those of you who understand pension funding.

Company closes final salary pension scheme to new employees.
Company final salary scheme members find out that their fund is greatly under-performing.

Who is responsible for the final salary fund shortfall, and in order to pay out on those pensions, who makes up that shortfall?


No doubt, only when MP's and their fat final salary pension schemes are threatened, will we see protective legislation.
:cool:

Declining industry
 

How many companies still offer a final salary pension scheme to new entrants? Any more besides Britannia, Monarch and KLMuk?
:(

thedude,

As far as I'm aware the employer has to make up the shortfall. This is why they're all pulling out of FS schemes as the burden/risk is all on them and not on the employee. :rolleyes:

If the company is sold or goes out of business I don't know what happens to the pension scheme. The only good thing about the money purchase scheme is that if your company goes out of business no one apart from you can get their hands on your pension contributions.

A long time coming I fear. Our First Minister in Scotland was thrown out over misconduct after only doing less than 2 years and had walked away with a pension of £32,000 for the rest of his life. :mad: :mad: :mad: :mad:

Nice if you can get it though.

Thats the whole point thedude, it is the COMPANY that is responsible to fund WHATEVER is required.

It is effectively, an open ended cheque book, which many companies are now saying, is not sustainable.

The accounting standard FRS17, is being used as an excuse in many instances; much more significant, is Gordon Brown dipping his mits into the funds via taxing and the poor performance of the stock markets and fund managers over the past few years.

In my (humble) opinion, defined contribution pensions as they are structured at present are a non starter. They are sold on the undoubted tax benefits, whereby if you are paying higher rate tax, you claw back the whole of the 40%, but if you stop and work out how much you will receive back via an annuity, it is a pittance compared to the fund value.

If you take my original post as an example, with a fund value of £400,000, it would take (at 5% annuity rate) 20 years just to get the capital returned. In the meantime, that £400,000, has been earning interest (normally via gilts of around 5%), so effectively, the whole of the fund value, is going to the annuity provider.

The annuity providers would claim they are taking the risk. What risk at 5%?

You might as well put it under the bed!

Everything I have written should be accepted as a personal opinion. Approximations have been used, as I don't have access to detailed rates, I am not an advisor in any shape or form and therefore, no way should anyone consider this advice.

BA is no longer the company it was , ROD is crewing it up.
Its time to resign .:cool: