British Airways To Close Pension Scheme

September 7, 2017

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British Airways said it plans to close its main defined benefit pension scheme, in a proposal that has been attacked by unions who demanded urgent talks to discuss the changes.

The airline said the move would address “the significant and growing funding deficit” in its New Airways Pension Scheme (NAPS), currently running at over GBP£3 billion. Member benefits already earned would be preserved, it said.

The GMB and Unite unions representing the 17,000 members of the NAPS scheme expressed “dismay and bitter disappointment” at the announcement, with pension members facing uncertainty over their benefits after retirement.

“Our team of financial analysts has worked tirelessly with the airline over the last few months to explore ways to keep the pension scheme open and secure it for the future,” a joint union statement said.

“This announcement sadly confirms that our advice has gone unheeded and that we have been unable to convince British Airways that keeping the scheme open is the right thing to do, for both the company and its employees.”

British Airways said it would propose new pension arrangements that will provide improved benefits to pension scheme members.

(Airwise)