Newsbrief No.70
Spring 2008.
Contents: 1. ABAP Website
2. Pensions Update
3. Variable Pension Option
4. Pensioners Staff Travel 2009 Campaign
5. Treasurers Report
6. AGM
7. A Dutch View : Another Runway.
8. British Airways Welfare & Benevolent Trust
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1. ABAP Website.
The Internet now reaches more than 50% of the population. That means our publications are read by an ever-increasing number of people, many of whom who are not ABAP members. The Committee recognises that whilst the website and domain are the property of an ABAP member, also agrees that they are dedicated to the interests of all ABAP members. They share the concern that the website properly reflects these values and objectives.
It is worth remembering that ABAP was formed in the late 1990’s to fight the intentions of British Airways which, if unchallenged, would have severely affected our pension schemes. ABAP succeeded and in ongoing discussions with British Airways Pensions, it continues to defend the terms and value of pensions.
ABAP is not, therefore, a mouthpiece for British Airways.
Whilst pensions are every pensioner’s main concern, their second concern is the other part of the package of salary and benefits for which they worked, Staff Travel. This is the subject of item 4 below.
2. Pensions Update:
The Pension Protection Fund.
The PPF has increased the maximum levels of compensation available when an employer cannot meet its final salary scheme obligations.
The lifeboat fund said it increased the Compensation Cap factors to reflect the rise in the general level of earnings in Great Britain since the previous tax year.
The new factors will be used for PPF compensation where the cap is assessed on or after April 1st.
EG: The maximum pension for a 65 year old for 2008/09 is now £30856.30
The Pensions Regulator to be given wider powers ?
The new measures proposed by HM Government would allow the Regulator to intervene against any business decision that could conceivably be seen as weakening the business ability to pay contributions to a company defined benefit pension scheme.
For example, BA, in which NAPS has a significant deficit, could have needed the Regulator’s approval to sell its low-cost subsidiary airline GO, or to reduce its stake in Iberia, if it were to avoid the risk of being told it had to compensate the pension scheme in some way.
If BA considers selling any landing slots or another subsidiary in the future we hope the Pension Scheme Trustees will make sure that part of the proceeds are used to fund NAPS (and APS if need be).
Grangemouth Fuel Refinery Strike.
The workers at this refinery are striking because their employer, the new owner of the refinery, does not wish any new employee to join their final salary pension scheme.
They are striking not for themselves, but for others who have yet to be employed. They must be some of the few individuals who appreciate that some employers are taking advantage of the current National Apathy to remove a valuable financial package.
3. Variable Pension Option.
Following the inconclusive moves on this issue in 2007, it was clear that ABAP must “up it’s game” to move matters to a higher level to convince the Trustees of
the merits of the ABAP call for VPO adjustment.
In the autumn Roger Maynard Chairman of Trustees granted a request that ABAP could make a VPO Presentation at the APS Trustees Board meeting in March 2008. The time made available was limited within the constraints of the Agenda for the meeting; but ABAP viewed this as a stride forward and prepared a response to complement the opportunity.
Three senior specialist pensions Actuaries : Danny Wilding, Partner of Barnett Waddingham; Stuart Southall, Managing Director of PunterSouthall; and Peter Crutchett, Head of Practice at Jardine Lloyd Thompson, were briefed over the winter to show the Trustees where the VPO had erred in the past and how it should be corrected now .
The Presentation took place on 26th March, introduced by Dayne Markham for ABAP The plan for the Presentation was circulated beforehand, and was well received by the Trustees.
On behalf of ABAP, the Actuaries closed by offering their assistance in finding the best solution for the pensioners & BA pensions.
The VPO will once again be on the Agenda, this time for the June 2008 APS Trustees meeting when a report on the VPO Presentation will be considered for action.
4. Staff Travel 2009 Campaign.
The Committee of ABAP has considered the recent changes which BA intends to make to Staff Travel from April 2009.
Whilst noting that the new arrangements give some pensioners improved benefits, the Committee recognises that several thousand pensioners are seriously penalised by the changes. The Committee believes that it is unreasonable and unfair to fundamentally change the conditions upon which Members retired, and it is unsurprising that many hundreds of ABAP members have written to us complaining, and requesting help in opposing this move.
In response ABAP set up a Working Group to research all aspects on this subject and establish what action might be taken to persuade BA to make the required changes. Noting that the main discussion was taking place on a blog outside and independent of its control and influence (http://bastafftravel.blogspot.com) the Committee is agreed that the ABAP Website may be used by the Working Group to communicate with Members; emphasising that any views expressed are not necessarily those of the ABAP Committee.
Any action will cost money and the Committee wishes to make it clear that whilst the constitution of ABAP states that ABAP was formed “to represent the interests of all pensioners, deferred pensioners, and potential pensioners of British Airways plc” the principal interest of all pensioners is their pension. For this reason it considers that the annual subscriptions of Members, and any funds raised in the past to defend our pensions may only be used in support of that objective.
Thus the Staff Travel Campaign Working Group (STCWG) is raising funds specifically to support the campaign and those wishing to contribute can find details of the address etc in the next item. ABAP is handling the management of the Fighting Fund but has agreed that it is ring-fenced, is only to be used for the Staff Travel Campaign and will be refunded proportionately to contributors once the campaign is concluded.
The Committee has also recognised that the Liaison Council, a body set up by BA in the 1980s as a forum with whom it wishes to discuss matters relating to pensioners; discussed the 2009 staff travel changes with the BA. The Liaison Committee claims that its discussions with BA culminated with the new arrangements being presented as a fait accompli but that it continues to work to try and get the decision changed.
ABAP will support any body or group including the Liaison Council that attempts to get BA to make the required changes to Staff Travel 2009.
The objectives of the STCWG are:
1 The removal of the time limit for which retired staff are eligible for Staff Travel benefits;
2 The reinstatement of the extension to widows and widowers of any seniority benefits their deceased spouse earned; and
3 The reinstatement of the right to bank any Long Service awards beyond the published date of March 2009.
5. Treasurers Report
Staff Travel 2009 Working Group Fighting Fund.
Members who do not see the ABAP website on this issue may wish to contribute to the Staff Travel Fighting Fund. It is separate from other ABAP funds; is to be used to find what action is open to pensioners; and is proportionately refundable to donors on wind up.
This Fund has a double purpose:
- The response is a gauge of the pensioner support for this campaign.
- The response gives a clearly defined financial limit for any proposed steps.
The address for all contributions is:
Staff Travel Fighting Fund
ABAP
Unit10
Solent Industrial Estate
Hedge End
Southampton
SO30 2FX
6. ABAP Annual General Meeting 2008.
Please make a note in your diaries that the Association Annual General Meeting is on Thursday, October 9th 2008 in the Concorde Centre, Heston at 2pm.
7. Another Runway : A Dutch Tale.
Some years ago there was a long established airfield in Holland that because of increased flights needed to lay down another runway.
Holland is a rather short of land, and is renowned for its reclamation achievements.
So Dutch people living close to the airfield were not happy with the idea of another runway.
The situation seemed unsolvable. A long and costly Inquiry, an Appeal, possibly another Inquiry, and then various Pressure Groups against the runway kicking up.
The prospect of open ended expense stretching for years before any runway might be laid concentrated the minds of the careful Dutch.
The houses and properties that would need to be removed to build an adequate runway would be bought out as a first move in the process.
But - paying DOUBLE the independent valuation for each property.
The idea was overwhelmingly popular with the home owners.
The airfield now owned the houses, which it rented out back to the previous owners or new tenants with a clause in the rental to move out after 3 months notice when runway work was ready to start.
We do not know whether everybody lived happily ever after, but the runway was built
with the minimum of fuss and the airfield has remained popular with the Dutch , Everyone Else, & the Mice, so we are told.
8. British Airways Welfare & Benevolent Trust.
Times are hard and we take this opportunity to remind Members of this facility.
It may be able to help with a grant of money, goods or services to alleviate hardship.
The Trustees will consider each application on its individual merit.
They are especially keen to hear from Pensioners who need help to restore their quality of life.
Benevolent Trust Secretary now: 0208 513 2528 (Julie Peters).
Or phone your Pensioner Contact.
The Committee of ABAP 27th April 2008