• Home
  • Admin/Tech
  • Benefits
  • Buzz
  • DB
  • DC
  • Diversity
  • Investment
  • Law & regulation
  • Risk reduction
  • Events
  • Whitepapers
  • Spotlights
  • Digital Edition
  • PPTV
  • Newsletters
  • Sign in
  •  
      • Newsletters
      • Account details
      • Contact support
      • Sign out
     
    •  

      You are currently accessing ProfessionalPensions via your Enterprise account.

      If you already have an account please use the link below to sign in.

      If you have any problems with your access or would like to request an individual access account please contact our customer service team.

      Phone: +44 (0) 1858 438800

      Email: [email protected]

      • Sign in
  • Follow us
    • Twitter
    • LinkedIn
    • Newsletters
    • YouTube
  • Register
  • Subscribe
  • Events
    • Upcoming events
      event logo
      Admin & Data Forum 2021

      This concise half-day event will explore a variety of different issues affecting scheme managers, through a combination of informative presentations and interactive panel debates, including GMP equalisation, the pensions dashboard, the accuracy and quality of members data and the latest trends in scheme administration.

      • Date: 04 Mar 2021
      event logo
      Defined Benefit Consolidation Conference

      Professional Pensions is hosting this concise digital event on the 25th March to provide a crucial update on where the current regulation stands on DB Consolidators, assess the different models available, what the expected funding levels are and the governance requirements. This event will be a combination of short presentations followed by live Q&A’s with our expert speakers allowing plenty of time to answer your questions.

      • Date: 25 Mar 2021
      • Digital Conference
      event logo
      Sustainable Investment Festival 2021

      The Sustainable Investment Festival will run online from 22-24 June and will include thought-provoking presentations from renowned keynote speakers, innovative breakout events and sessions specifically tailored to meet the information needs of fund selectors, financial advisers, pension consultants, trustees and scheme managers.

      • Date: 22 Jun 2021
      • Online, Online
      event logo
      UK Pensions Awards 2021

      The UK Pensions Awards – now in their 24th year – remain the industry's most prestigious accolades. They shine the light on excellence and recognise the advisers, providers and investment managers that offer the highest level of innovation, performance and service to occupational pension schemes and their members, and have done the most to improve this over the past year.

      • Date: 14 Sep 2021
      • London
      View all events
      Follow our Professional Pension Events

      Sign up to receive email alerts about our events

      Sign up

  • Whitepapers
    • How DC schemes can gain exposure to different asset classes in a low-return environment

      So far, DC plans have largely been focused on the onset of auto-enrolment and changes to the regulatory framework - be it the ‘charge cap,' ‘pension freedoms' or consultations around ‘value for money', says Annabel Tonry, Executive Director at J.P. Morgan Asset Management (JPMAM).

      Download
      Pension freedoms three years on

      In 2015 George Osborne, then the UK Chancellor of the Exchequer, decided that those age over 55 could take much more of their pension in cash. This has since opened up a range of possibilities for DC scheme members in the world of pensions.

      Download
      Find whitepapers
      Search by title or subject area
      View all whitepapers
  • Spotlights
  • Digital Edition
Professional Pensions
Professional Pensions
  • Home
  • Admin/Tech
  • Benefits
  • Buzz
  • DB
  • DC
  • Diversity
  • Investment
  • Law & regulation
  • Risk reduction
 
    • Newsletters
    • Account details
    • Contact support
    • Sign out
 
  •  

    You are currently accessing ProfessionalPensions via your Enterprise account.

    If you already have an account please use the link below to sign in.

    If you have any problems with your access or would like to request an individual access account please contact our customer service team.

    Phone: +44 (0) 1858 438800

    Email: [email protected]

    • Sign in
  • Defined Benefit

British Airways returns to pension deficit as court showdown nears

British Airways returns to pension deficit as court showdown nears
  • James Phillips
  • James Phillips
  • @PPJamesPhillips
  • 28 September 2016
  • Tweet  
  • Facebook  
  • LinkedIn  
  • Send to  
0 Comments

The combined balance of British Airways' (BA) defined benefit (DB) schemes has returned to a deficit after recording a surplus at the end of last year.

The company, which operates two DB schemes in the UK, saw the funding situation deteriorate by £778m on an IAS 19 accounting basis over the six months to the 30 June.

Overall, the aggregate funding level fell from a £355m surplus to a £423m deficit. The company had last recorded a combined deficit on 31 December 2014, when the shortfall stood at £66m.

Related articles

  • People Moves Blog: DWP appoints two non-executive board members; Lothian Pension Fund chief executive steps down; FCA expands exec team with four female appointments
  • MetLife reinsures $5bn of Rothesay liabilities
  • LawDeb grows pension revenues by 8.3%
  • Longevity assumptions retain stability despite Covid

The company blamed the reduction of discount rates due to falling corporate bond yields for its worsened position.

The New Airways Pension Scheme's (NAPS) deficit grew by 240% between 31 December and 30 June. The company's interim report, published 27 September, recorded a deficit of £1.2bn on 30 June compared to £338m at the end of last year.

Conversely, the Airways Pension Scheme (APS) saw its funding situation improve. The scheme, which had a £693m surplus on 31 December (also on an IAS 19 basis), recorded a 5% increase to £727m on 30 June.

The APS and NAPS closed to new members in 1984 and 2003 respectively, but both remain open to future accrual.

Triennial valuations for the two schemes were required to be completed by 30 June, but have been delayed due to an ongoing legal dispute with trustees.

BA is currently battling the APS trustees over a proposed 0.2% discretionary increase above the consumer price index for payments in the 2013/14 financial year.

The company said the increase would be inappropriate given the combined deficit of the schemes.

At the last triennial valuation for 31 March 2012 there was a combined deficit of £3.3bn across APS and NAPS, causing the company to commit to £2.8bn of deficit payments by 2026. It expects to make £205m of these payments to the schemes this year.

The increase was put on hold pending the trial, which is due to begin in October.

In the interim report, the company said: "Although discussions have been constructive, further work is required... to finalise the valuation and conclude a satisfactory agreement."

 

  • Tweet  
  • Facebook  
  • LinkedIn  
  • Send to  
  • Topics
  • Defined Benefit
  • BA
  • British Airways
  • APS
  • NAPS
  • New Airways Pension Scheme
  • Deficits

More on Defined Benefit

Jones: It’s about creating this one pool that delivers the cost savings. That’s what the customers want
Richard Jones: Looking for good people for the Stoneport club

DB scheme consolidator Stoneport hopes to get 100 schemes signed up by the end of next year, but employer covenant will be vital, chief executive Richard Jones tells James Phillips.

  • Defined Benefit
  • 26 February 2021
The outlook for future longevity in the UK has not necessarily worsened as a result of the coronavirus pandemic, Aon says.
Longevity assumptions retain stability despite Covid

The outlook for future longevity in the UK has not necessarily worsened as a result of the coronavirus pandemic, Aon says.

  • Defined Benefit
  • 26 February 2021
DRCs have been deferred for three months. Photo: Mitchells & Butlers
Covid restrictions lead Mitchells & Butlers to defer £13m of contributions

Mitchells & Butlers has deferred £13m of deficit recovery contributions (DRCs) after tier four Covid restrictions wreaked havoc across the hospitality sector.

  • Defined Benefit
  • 22 February 2021
Nearly £1bn of payments are due to the scheme by 2024
BA defers £450m of DRCs after 'swift and severe' pandemic closures

British Airways (BA) has deferred deficit recovery contributions (DRCs) totalling £450m following an agreement with trustees after a catastrophic year for the airline industry.

  • Defined Benefit
  • 22 February 2021
DB transfer complaints to ombudsman jump 44% in 2020
DB transfer complaints to ombudsman jump 44% in 2020

Jump from 554 in 2019

  • Defined Benefit
  • 16 February 2021
blog comments powered by Disqus
Back to Top

Most read

BT, Ford and M&S schemes granted extension for legal challenge over government's decision to align RPI with CPIH
BT, Ford and M&S schemes granted extension for legal challenge over government's decision to align RPI with CPIH
Rothesay secures £7bn of pension benefits
Rothesay secures £7bn of pension benefits
Chancellor Sunak 'likely' to freeze lifetime allowance
Chancellor Sunak 'likely' to freeze lifetime allowance
BA defers £450m of DRCs after 'swift and severe' pandemic closures
BA defers £450m of DRCs after 'swift and severe' pandemic closures
Scottish Widows adds 289,000 members to build workplace market presence
Scottish Widows adds 289,000 members to build workplace market presence
Trustpilot

 

  • Contact Us
  • Marketing solutions
  • About Incisive Media
  • Terms and conditions
  • Policies
  • Careers
  • Twitter
  • LinkedIn
  • Newsletters
  • YouTube

© Incisive Business Media (IP) Limited, Published by Incisive Business Media Limited, New London House, 172 Drury Lane, London WC2B 5QR, registered in England and Wales with company registration numbers 09177174 & 09178013

Digital publisher of the year
Digital publisher of the year 2010, 2013, 2016 & 2017
Loading