News flashes


APS discretionary increase: BA appeal result

Disappointingly, BA has won the appeal against last years judgement, with the exception of the point that it was a benevolent or compassionate payment.

"British Airways (BA) will not have to pay a £12m discretionary benefit its trustees had unilaterally granted, the Court of Appeal has ruled. In its judgment issued today (5 July), the court accepted the airline's arguments that trustees of the Airways Pension Scheme (APS) had acted for an improper purpose when granting the 0.2% discretionary increase in the 2013/14 financial year. While there was one dissenting judge, the other two judges agreed with BA that the trustees had acted outside of their powers by granting the
increase."

ABAP have responded to the result. That document can be downloaded
here, and on the same page there is a copy of the full judgement.

You can also read more on the Professional Pensions website,
here.

Investment & Pensions Europe (IPE) have also reported. Link
here.



BA Pensions "In Focus"

The latest BA Pensions "In Focus" publications are available for APS & NAPS.

For NAPS it's at
http://www.mybapensiondocuments.com/IF/NAPSP2018

For APS it's at
http://www.mybapensiondocuments.com/IF/APSP2018

Most recent funding levels show NAPS as 82.7% funded with a £2.8bn shortfall (2015) and APS as 91.5% funded with a £680m shortfall (still 2012, as the 2015 valuation awaits the result of BA's appeal).

There's some useful information within the documents. When viewing the document online, clicking on the spanner (top right-hand corner) will give you an option to download a PDF. That may be the best option as reading online can be clunky, particularly if the speed of your internet connection is poor.


Latest Newsbrief

NewsBrief 111 is available for download by clicking here, and the previous edition, NewsBrief 110 is available for download by clicking here


NAPS closure to future accruals.
Two major questions are posed by BA’s decision to stop NAPS for further accrual from 1st April 2018.
• What is the best of the various Defined Contribution (DC) options?
• How does this proposed DC scheme compare with NAPS as far as contributions and resulting pension are concerned?

To help answer these questions, we have built a simulation model. Before following the link to the documents and spreadsheet please take careful note of these health warnings:

Nothing in the documents or spreadsheet should be taken as constituting individual financial advice. It is a summary of results from a mathematical simulation based on the NAPS rules, the proposed DC scheme and Office for National Statistics Life Expectancy tables. The simulation has been prepared to give you a better understanding of the potential impact of the newBARPS options.

The spreadsheet itself is built in Microsoft Excel. Not everyone has a copy, and we apologise in advance to any members who do not have access to this software themselves.

The topic itself is complicated, and the devil is in the details. Your circumstances are unique to you, and to ensure that you understand which of the available new BARPS options would produce the best outcome for you, you should consider taking financial advice.

The documents and spreadsheet can be found here:

AGM - lost property.
We had a pair of reading glasses handed in after the AGM. They are M&S reading glasses, tortoise-shell coloured. They were found in a dark purple soft case.
Please contact David Waddington at
gensec@abaponline.org to arrange return.



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