Pension fund agreement for British Airways

BRITISH AIRWAYS has reached agreement with the trustees of its New Airways Pension Scheme (NAPS) and Airways Pension Scheme (APS) on a recovery plan to address its pension deficits.  The airline completed consultation with its unions earlier this year and will now submit the full recovery plan to the UK Pensions Regulator by 30 June 2010.  The recovery plan avoids closing the pension schemes.  It maintains BA’s annual contributions at the current level of some £330m, plus agreed annual increases in line with inflation expectations averaging 3%.  The agreed deficit contributions continue until 2026 for NAPS and 2023 for APS.  The pension fund deficiency was an obstacle in the way of the proposed merger with Iberia, which is still on schedule although there are at this stage some new mutterings from within the trade union movement. www.ba.com

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