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British Airways
recently met its trade unions to continue consultation over tackling the £2.1 billion deficit in its New Airways Pension
Scheme (NAPS).
The meeting follows agreement in principle between the airline and the NAPS trustees on a funding plan to pay off the deficit, subject to
staff accepting benefit changes.
A major issue for the staff and unions has been raising the normal retirement age to 65 from 55 for aircrew and 60 for ground staff.
The airline has now included the option of a normal retirement age of 60 in return for increased contribution rates. For ground staff this
will mean an increase from 5.25% to 10% and for air crew for the first five years 6.5% to
11.25%. After five years, rates will be harmonised at 10% for all.
BA will raise its annual contributions from £235 million to £272 million.
British Airways chief financial officer Keith Williams
said, “We recognise that normal retirement age was a sticking point and we have put
forward an option that allows staff to retire at 60. Staff can still choose not to pay any extra but it will mean working longer to get the same
pension.”
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