T&G rejects British Airways' pension changes

The T&G general union has said that it will oppose British Airways’ planned changes to its New Airways Pension Scheme (NAPS). NAPS has nearly 34,000 active members but was closed to new members in 2003.

The company says that, along with a rise in normal retirement age, there would be a slower accrual rate (build-up of pension), pensionable pay increases of no more than inflation, and pension increases on retirement capped at 2.5% each year.

The company says it would “share” the impact of changes in life expectancy with staff. The changes to members’ future benefits are expected to reduce the anticipated deficit by £450 million.

Brendan Gold, T&G national secretary for civil aviation, said: “The proposal as presented to the T&G today is both unfair and unacceptable and does not represent a starting point for negotiations.”

Gold explained: “By capping increases in pensionable pay to the RPI [retail price index] for accrued service, the company is proposing to take away benefits that have already been earned and paid for.”

He added that: “This may be legal but is morally wrong. This change alone has the effect of reducing existing pension pots by £13,300 on average.”