BA pensioners threaten further action

The Association of British Airways Pensioners has written to APS trustees asking them to remove a clause which was added to scheme rules in 1986. This allows BA to grant benefit improvements to both members and non-members of the APS scheme using surplus funding.

The trustees have been given until the middle of the month to respond.

The Association of British Airways Pensioners’ chairman George Bell is unhappy that BA is relying on scheme surpluses for benefit improvements.

Bell said he believed trustees did not have the authority to alter the trust deed and if they refused to change this clause, the association would take the case to the pensions ombudsman.

Bell calculated that BA had spent £339m of the APS surplus on benefit improvements through this clause so far.

Only last month the Court of Appeal ruled that BA cannot take any disposable surplus in the pension fund for itself.

APS trustees were then told that that any disposable surplus could be used to provide either rises in benefits for scheme members or a contribution holiday for BA.

By Geoff Ho

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Send to  

• Topics
• United Kingdom
• Legislation