01 Dec

Pensions Update: Friday 1st December

To all Unite and BALPA members in British Airways

 

BA Pensions – Update on proposed changes to NAPS & BARP

Firstly, thank you for your patience during what has been an uncertain time. This has been a long, complex and difficult pensions negotiation, and trying to find an acceptable solution is far from easy.

As previously reported, Unite and BALPA pension specialists have carefully examined the current NAPS funding position, including the cost of providing future benefits. This has included detailed briefing sessions with the NAPS Scheme actuary, PwC (the covenant or “ability to pay” consultants who advise the Trustees) and the NAPS Trustees themselves, including the CEO of BA Pensions. We have drawn two main conclusions from our analysis: 

First, the financial assumptions being used to calculate the NAPS deficit and the cost of future accrual in NAPS are reasonable and broadly in line with the assumptions being used by other final salary pension schemes; 

Second, based on these financial assumptions, the magnitude of the potential benefit changes that would be required to keep NAPS open are such that the scheme would become both unaffordable and uneconomic for members and the airline. 

This means we have been focussed on trying to find an acceptable solution for the future. BA released their initial proposal several weeks ago and we were quite clear that this was unacceptable. BALPA and Unite have continued to meet with British Airways in an attempt to negotiate an acceptable solution to the proposed BARP and NAPS scheme closures.

 

We believe we have made significant progress in a number of areas, however, some key points still remain. If, and we must stress if we are able to resolve these important points, British Airways will plan to release its new and final proposal next Friday 8 December. 

Before that can be done Unite will call a special joint cross airport NSP meeting next Thursday 7 December to go through the proposal. BALPA will also conclude their own internal processes. Following on from those meetings a series of Reps and members meetings will be arranged to go through the proposal in detail so that all members have a full understanding of the changes prior to consulting via ballots early next year, to determine if these final alterations are acceptable or otherwise. 

 

Yours sincerely

 
                                   
 

Oliver Richardson               John Moore

National Officer                Head of Industrial Relations

Unite                           Balpa

Pensions

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