British Airways Pension Scheme
British Airways operates two major pension schemes: the New Airways Pension Scheme (NAPS) and the British Airways Retirement Plan (BARP). NAPS, which was closed to new members in 2003 and to future accrual in 2018, is a defined benefit scheme providing members with a pension based on their final salary and years of service. BARP, established for employees who joined after the closure of NAPS to new entrants, operates primarily as a defined contribution plan, where the retirement benefits depend on contributions and investment performance. These pension schemes represent British Airways’ commitment to offering competitive retirement benefits, reflecting the importance of financial security for its employees. Both plans are managed carefully to balance the needs of members with the financial realities facing the airline, incorporating sophisticated investment strategies and risk management practices to ensure the sustainability and security of the pension benefits.
Did you transfer your British Airways pension?
If you were part of the British Airways Pension Scheme, you may have been advised to transfer your pension away. Sometimes referred to as final salary pensions, defined benefit pensions are a great source of income for those people who have them. Personal Pensions and Self-Invested Pensions (SIPPs) are subject to market risk and their values fluctuate daily, unlike a Defined Benefit Pension which is guaranteed. When you retire and draw funds from a private pension, the money can run out. Defined Benefit pensions are different in that they will continue to pay out until a person’s death, regardless of their age.
Despite many individuals being advised to move funds out of their British Airways pensions, doing so was generally not in their best interest and has led to many complaints. Although it may have been sold as a good idea and in your best interest, this often didn’t turn out to be the case. There are many risks with this type of transfer.
Pensions can be very complex, and some people worry about if they have done the correct thing by following financial advice. Luckily though, we are highly experienced in helping people that have been mis-sold pensions and can quickly determine if you are entitled to compensation.
Call us to speak with one of our experts for a free and no-obligation chat. We will be able to advise on how to proceed with your claim. Our fees are very reasonable and you only have to pay them once you have received your money redress, and only if you are happy with our service.
Call us now for a phone or video consultation with one of our legal experts on 0800 041 8358 to find out if you are entitled to compensation, you may even be entitled to additional compensation if you have successfully claimed in the past.
