UK - British Airways pension scheme members have attacked plans to make shift pay pensionable as "classic short-termism".
The move will increase income into BA’s two schemes – the Airways Pension Scheme and New Airways Pension Scheme. But it offers no guarantee of a larger pension.
A source at BA also suggests it could be a way to raise FRS17 figures ahead of the scheme’s triennial evaluation next March.
He said: ”By using shift pay, money will enter the schemes, but it’s release is spread over future years.
“So, BA is not instantly paying out large sums of money. It is classic short-termism.”
By including shift pay as pensionable pay, staff final salaries will only increase if members of staff are still working shifts on top of normal working hours on retirement.
BA pensions manager John Birch could not comment on the proposals explaining that it is the company, rather than the trustees, which define elements of pensionable pay.
But company representatives also declined to comment on the matter.
The Association of British Airways Pensioners – which was informed of the move by BA ground staff – described BA’s plans as “perverse”.
Letters expressing its concerns have been sent to trustees’ chairman Mervyn Walker and BA chief executive Rod Eddington.
ABAP chairman George Bell said: “It seems remarkable that BA would add shift pay to the pensionable element of any group of staff.
“This would potentially increase BA’s liabilities for both APS and NAPS members – two schemes that were closed because of costs.”
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