British Airways Pensioners Association


	News About ABAP Previous News Current Newsbrief Previous Newsbrief Why Join ABAP? Membership Application Events Association Objectives The Committee The Trustees Contacts Join Mailing List Join Forum Links Membership Forum		Newsbrief No 58 Contents: 1. AGM Report. 2. Message from the Chair. 3. Variable Pensions. 4. Overseas State Pensions. 5. Membership Cards. 1. Annual General Meeting. Concorde Centre, Heston at 2pm 14th October 2004. The Chairman, George Bell, opened the fourteenth Annual General Meeting by welcoming all those present. Again there was an excellent turnout. This was to be his last meeting as he had previously said that he would step down at the 2004 AGM. Chairman's report The Chair then presented his report on the action taken over the last twelve months and highlighted the following key points. For the first time ABAP had been invited to discuss the 2003 Valuation results on the same day that the TU had similar meetings. The results declared were that APS had a surplus of £45M and NAPS a deficit of £928M. In our view the assumptions made under estimate the real position and that the contributions that BA has agreed to pay remain inadequate. The APS Trustees had decided to reduce the 30% holdings in equities to 15% by the end of 2013. This will partially protect APS from further falls in the equity markets but the decision has been made much too late. At the last valuation APS had a reported surplus of £820m most of which has been lost. Our actuaries advise that if there was a "discontinuance", that is if BA became insolvent, their calculation is that APS, on a funding level of 90%, would have a deficit of £600m. For NAPS with a funding level of 60%, the deficit would be £2.1billion. The Annual Report & Accounts 2004(available 20th Sept. 2004) reverts to the Valuation Report method of simply referring to the discontinuance funding deficit as a percentage. This effectively conceals the unpleasant figures of £600m(APS) & £2.1billion(NAPS). The increased funding of £115m.for NAPS recommended in the Valuation does no more than pay the interest on a deficit of £2.1billion. The funding of the deficit is now totally reliant on future equity performance. You will recall that a Special Meeting of Members was arranged to discuss the 1999 Merger. This came about because active members have the right under the Trust Deed to call a meeting. Mike Post and Mike Palmer argued that pensioners should also be invited to the meeting held in 1999 at Waterside. Since then we have pressed for a rule change to Rule 25 which would allow pensioners the same right as exists for active members to call a special meeting. In December 2003 the two Trustees elected by the Active Members of APS voted Against this proposed change so that it failed to achieve the 2/3rds majority. The Chairman of Trustees has said this matter will be discussed again in the future when we hope the required majority will be achieved. In the Trustee elections Cliff Pocock was elected, Mike Post re elected and Graham Tomlin was defeated by a mere 212 votes. On your behalf, I would like to express our sincere thanks to Graham for his Trusteeship. He has joined the ABAP Committee. His Pensioner Trustee seat is now filled by Stuart Scott, who attends our AGM for the first time. The current Trustee arrangements were proposed by BA using the 'opt out' provisions allowed for in the 1995 Pensions Act. The Pensions Act 2004 abolishes these 'opt outs', therefore we have written urging the Government to set a date for their abolition to take effect. Our hope is the Trustees will set up new arrangements which represent Pensioners more fairly. The current arrangement allows 2037 Active Members to elect 2 Trustees, and 30000 Pensioners to elect 3 Pensioner Trustees. For contrast, in the recent APS Trustee elections an active member was elected who received just 550 votes total. George thanked all the members who took the trouble to write to their MPs about the Pensions Bill. He commented on the key points and highlighted the Pensions Protection Fund as currently proposed will take over the payments of pensions where a company becomes insolvent. However increases will not be provided for pensions in respect of employment before 1997 and the Secretary of State can limit or reduce the pension if he deems it necessary. To give a perspective to this area, the Government proposed £400m scheme (paid over 20 years) to help those in already failed schemes, but this amount can only compensate several hundred pensioners. So the PPF will have to be very large indeed to make any significant difference to the plight of affected pensioners. George closed by thanking all the members for their help and support over the years. He thanked the committee for their work and paid tribute to Jack Wickson and Pam Lock for their services. A solid silver salver was presented to Jack. Pam will receive her presentation at home in the New Year. Resolution 1 Acceptance of the Chairman's report was proposed by Cliff Alabaster, seconded by Jack Wickson and carried unanimously. Dayne Markham then read a tribute to George written on behalf of the committee by Vice Chair Roy Hutchings. A large solid silver salver was then presented to George as the entire meeting exploded into a standing ovation lasting many minutes. Sandra Sellers took over the chairmanship of the meeting. 1450 proxy votes had been received and she cast these in favour of each resolution. Resolution 2. Acceptance of the Accounts 2003/2004. The audited accounts having been distributed, the Treasurer Jack Shill answered questions arising. The acceptance of the audited accounts was proposed by L Snow, seconded by Mr Bull and carried by those present. Resolution 3 Re Election of the Committee. The re-election of committee members was proposed by Geoff Nolan, seconded by L Snow and carried unanimously. Resolution 4. Subscription Levels The approval of the current subscription levels raised a debate. Mr Geoff Nolan repeated his proposal from last year that the subscription levels be reduced to 50P per £1000pa. He argued that the current level may put off potential members from joining and since our negotiating strength is the thousands of people who are members that it is important to appeal to as wide a cross section as possible. The current reserves are healthy and expenditure is matched by income so that a reduction would not impair the work of the Association for the forseeable future. A lively debate ensued with a consensus that the subscription level was not likely to be a factor. Apathy, not money, is the key factor. Many pensioners do not perceive the need to read our Newsbriefs, or to concern themselves with pension matters, believing that they can leave it to others. The proposal put forward by Mr Nolan was voted on by the floor and was defeated. The Resolution to set the subscription for 2005 at the same level as in 2004 with an upper limit of £50 was proposed by Bill Adams , seconded by Anne Nash and carried by the floor. OPA Sandra Sellers explained that the Occupational Pensions Alliance had subsumed the work currently undertaken by COPAS . Resolutions 5 and 6 the acceptance of the report and the approval of the subscriptions were proposed, seconded and carried by the meeting. Any Other Business The meeting was then opened for any further comments from the floor. As in previous years several questions and points were raised on the subject of raising awareness of the Association by means of advertising in local press, via BA Clubs, through the TU etc. The Committee has agreed to investigate the price of placing advertisements in SAGA magazine, and of producing a card for Members to put in local shop windows, post offices, phone boxes, public houses, and of taking advertisements in resident association newsletters etc. A new programme of Association awareness has now been launched "spreading the Word far & wide". All members are urged to use every opportunity to raise awareness of the work of our Association. Visit the ABAP website at : www.abap.org.uk 2. Message from the Chair. As an Association we have been fortunate. Firstly, we were led by Don Packwood and then by George Bell. These worthies and the other Committee members have shouldered many burdens for us over the years. Now the torch has been passed to new team. The Committee for this year will be : Sandra Sellers. Chair. Roy Hutchings. Vice Chair. Jack Shill. Treasurer. Mary Hegarty. Membership. Dayne Markham. General Communications. ( Email. daynemarkham@hotmail.com) Keith Bretherton. Graham Tomlin. The next Committee Meeting will be on 17th February 2005 at 81 New Road Harlington, courtesy of BALPA. The Agenda for the coming year will focus on the security of our BA Pensions, and any changes that BA may propose for the Schemes. By way of a personal introduction I am not yet a Pensioner, but have an entitlement to an APS pension in respect of my BA employment with BA Pensions from 1977 to 1985. I currently work part time for car retailer Inchcape as their Head of Pensions. My husband is already a NAPS Pensioner as he served with BA for 28 years. Although I know only too well that I cannot follow in the footsteps of my illustrious predecessor I will work to represent our interests recognising that we all rely on our Pensions for our Financial Security & Way of Life. 3. Variable Pensions. The concept of the variable pension arrangement was that money would be advanced by the Scheme each year until the State Pension became payable. Then this money would be repaid with interest over the lifetime of the Pensioner. However, as with many things, the Scheme Actuary made mistakes in setting the amount of the repayments. He underestimated both how long pensioners may live and the trend of interest rates. We have pressed the Trustees to take action to remedy the resulting unfairness. But as recently as November 2004, the Chairman of Trustees has written to us stating that to do so would be unfair to other Scheme members, and to BA which ultimately pays the balance of the cost of the benefits. This is not getting the problem for Pensioners any nearer a fair solution. We urge the Trustees to take independent Actuarial advice for adjusting the Variable Pension Option. Then to review this issue again. With the aim of delivering financial justice for all concerned. That is: Present Pensioners, Future Pensioners, BA Pensions & British Airways. We will, of course, in turn continue our campaign anew as well. 4. Overseas Members: State Pension Increases. We have been asked by Members living abroad to campaign for the Government to award Cost of Living increases on the British State Pension for Pensioners, wherever they choose to live in Retirement. At the moment, whether you receive any increase to your State Pension or not depends on which country you live in when retired. We are sympathetic to this cause so perhaps you may wish to support your former colleagues who are caught by this injustice and lobby your MP on their behalf. We urge you to take a little time to do this, as you never know when it might affect you, if at some time you decide to move Abroad. 5. Membership Cards. The Treasurer advises continuing postal difficulties may have delayed the arrival of some Members subscriptions. We have taken further steps to end the problem. Members are asked to keep their "fingers crossed." If you have still NOT received your Membership Card, even by January 1st 2005, and your cheque has been cashed please inform : The Treasurer. ABAP 41 Linkway CROWTHORNE RG45 6ES. Please double-check the address to which you send your subs to ensure you have the correct house number. If you have paid your subscription , still not received your Membership Card -even by January 1st 2005, and your cheque has NOT been cashed. The Treasurer requests you to please send it in again at the above address using the enclosed new shortened Form. If 2 cheques do turn up we will only cash 1. 6. Membership. Please encourage anyone you know who qualifies for membership of ABAP but who isn't a member already to cosinder joining. If, like you, they have internet access, invite them to visit this website. Sending such friends an e-mail isn't "spam" and provided you don't overload your ISP with messages it's an easy way of spreading the word. Emphasise we are a friendly crowd ! It only remains for the Committee to Wish All Pensioners a Merry Christmas & a Happy New Year. 28th November 2004.