BA Reaches Agreement On Pension Schemes

BA Reaches Agreement On Pension SchemesBritish Airways has reached agreement with its pension trustees on a plan to reduce its £3.7bn pension deficit.

BA said the plan would avoid the closure of its two final salary  pension schemes.

The airline reached an agreement with its trade unions on the pension changes in March.

BA has two final-salary pension schemes. The Airways Pension Scheme (APS) closed to new members in 1984 and is made up mainly of pensioners.

The larger New Airways Pension Scheme (NAPS) also closed to new joiners in 2003 but still has about 30,000 staff in it.

The deficits of the schemes currently stand at about £2.7bn for the NAPS and £1bn for the APS.

BA aims to continue paying in £330m a year, rising in line with inflation, to APS until 2023 and to NAPS until 2026.

Frenkels Forensics are able to deal with all financial aspects of pension losses arising from final salary pension schemes and money purchase pension schemes.  For more information please contact John Frenkel or Vitek Frenkel on 020 8457 2929.


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