UK - BA pensioners are threatening further legal action against the Airways Pension Scheme over its rules on surplus.
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
Industry experts are calling on the government to act quickly on new pensions dashboard legislation. The DWP is looking at how to do it amid Brexit constraints, writes Kim Kaveh.
An interactive and hands-free technology that allows savers to track how much they have invested into their retirement pots has been launched by Smart Pension.
The Lighthouse Pensions Trust has recorded an 84% surge in the number of employers signed up to its auto-enrolment (AE) provision.
Melrose Industries's UK defined benefit (DB) schemes had a £5.5m combined deficit at the end of 2016, its annual results have revealed.