British Airways launches completely new defined contribution pension scheme

British Airways Launches Completely New Defined Contribution Pension Scheme

International Airlines Group’s subsidiary British Airways has decided, following consultation with its trade unions in addition to employees, to launch a flexible benefits scheme incorporating a completely new defined contribution pension scheme.

British Airways Launches Completely New Defined Contribution Pension Scheme

The scheme will open on April 1st next year, replacing the main UK defined benefit scheme, the completely new Airways Pension Scheme, in addition to the main UK defined contribution scheme, the British Airways Retirement Plan.

British Airways Launches Completely New Defined Contribution Pension Scheme

The improvements are subject to NAPS trustees agreeing to amend the scheme’s rules to enable closure to future accrual.

British Airways Launches Completely New Defined Contribution Pension Scheme

The completely new scheme will offer market-competitive arrangements using a choice of contribution rates in addition to the ability to opt for cash instead of a pension. 

British Airways Launches Completely New Defined Contribution Pension Scheme

Active NAPS members will also be offered a choice of transition arrangements including a cash lump sum, additional company pension contributions or additional pension benefits in NAPS prior to its closure.

British Airways Launches Completely New Defined Contribution Pension Scheme

The overall financial impact on British Airways will depend, in part, on the transition arrangements members select.

British Airways Launches Completely New Defined Contribution Pension Scheme

British Airways launches completely new defined contribution pension scheme

Reply