Newsbrief No 73
23 February 2009.
Contents:
1. Talks with the Liaison Council
2. Scheme Solvency: Crown Guarantee
3. Update on the VPO
4. Fuel Surcharge
5. Proposed Staff Travel Watch
6. Staff Travel ST09 Working Group.
7. Treasurers Corner.
8. AGM 2009 Date.
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1. Talks with the Liaison Council.
Following the contribution to the AGM from the floor by the Chair of
the Liaison Council, informal talks took place in December & January to explore areas of common interest & co-operation.
It was agreed that in the first instance a channel of liaison should be set up. There are already ABAP members on the LC. ABAP welcomes this proposal, we now await confirmation from the LC when it will happen.
2. Scheme Solvency: Crown Guarantee.
An APS member has recently raised the issue of the Solvency Guarantee enjoyed by APS.
Whilst the solvency of several schemes in the former nationalised industries continues to be guaranteed by the Government (Crown), it appears that APS only enjoys a guarantee backed by its principal employer, British Airways.
The ABAP Committee wishes to research the circumstances in which the Crown Guarantee, which was enshrined in the original APS Trust Deed, appears to have disappeared during the privatisation process in the 1980s.
Any APS member who has documentary evidence which relates to that period,
Or can offer any personal recollection of those events is asked to contact our
Secretary David Waddington on: david.waddington@zen.co.uk or 01234 824 787 .
The Committee also wishes to explore whether there is any possibility that those liabilities which relate to the period prior to privatisation may in any event be covered by the original Crown Guarantee.
e.g. The pensions of those members who retired prior to privatisation. In this period of financial turmoil any evidence of such security for some or all members would clearly be most welcome.
3. VPO: Update.
Following the VPO discussion at the AGM. John Birch, then BA Pensions Secretary, wrote to ABAP regretting that the “ring fence” for a VPO settlement requested by the Trustees, & provided professionally by ABAP, was not satisfactory in their view.
Furthermore because of the recession the Trustees would not discuss the VPO again until after the 2012 Triennial Valuation when a Scheme surplus would be required.
ABAP has found itself unable to accept these stipulations.
Firstly, the earliest realistic date for VPO discussion would be 2013. This may seem reasonable to the majority of Trustees aged under 60 to place a moratorium on VPO
discussion for 4 years, but it is not fair or reasonable to the complaining VPO pensioners in their Ninth Decade, many of whom have been awaiting a fair settlement for 14 years. They will have moved on.
Secondly, the scale and manner of the VPO settlement was spelt out informally to ABAP by BA pensions in June 2008. At this time no scheme surplus was required for settlement notwithstanding that the financial climate was not buoyant even then.
Therefore ABAP, following conference including the ABAP President and our legal team, has notified the Trustees that we request Arbitration on the VPO issue. The VPO issue has been running too long to be eligible for the Pensions Ombudsman Scheme.
Currently the Trustees now contend that the VPO is not a case for arbitration, and are in addition are withholding requested VPO details.
In October 2008 the Trustees agreed that a Rule amendment would now be needed to change the terms of the VPO. Oddly this was not mentioned in June 2008. Time is not on the side of the VPO pensioners, and BA pensions have started a second circuit of the same historic requirements/objections to VPO settlement.
ABAP hold the view that VPO settlement is not a major operation with, in truth, a large proportion of the funds required already paid by VPO pensioners through “over-payback.” But we sense that the lid is being screwed down on the VPO by the Trustees. We sincerely hope that we are mistaken, as no good can come from it.
Therefore ABAP calls on the Trustees as an act of good faith to make the necessary VPO settlement Rule amendment now – in preparation for settlement.
4. Fuel Surcharge Rebate
It has been reported that BA has overcharged passengers in the Fuel Surcharge element of the airline ticket price.
At first it appeared that it could be possible that Staff Passengers having bought Hotline tickets would eligible for a rebate under the settlement reached to resolve the litigation in the US brought on behalf of US & UK passengers.
British Airways has now directly informed ABAP that this is incorrect.
5. Proposed Staff Travel Watch.
It is clear that Staff Travel is the second most important common item for pensioners after pensions. The campaign to have BA adjust the terms of ST09 for pensioners has not worked in the short term leading up to the start date 1st April 2009.
The need remains. It is proposed to establish a permanent Staff Travel Watch to keep pensioners up to date on ST matters and at the same time keep BA aware that ST is being monitored. (Existing Pensioners still have ST until 2014 under ST09)
ABAP cannot run this body, so any BA pensioner, whether in ABAP or not, who has any expertise in this area is welcome to make their interest known via ABAP. Contact Secretary David Waddington at: david.waddington@zen.co.uk or 01234 824 787
The idea is for a long term approach to 2014 to work for ST09 improvements & ensure pensioners never become sidelined in ST discussions again.
The Liaison Council will be kept informed as a matter of policy.
6. Staff Travel Working Group.
The Final Report from the Group by Philip Howells is sent with this Newsbrief.
7.Treasurer’s Corner
Jack Shill our resurrected Hon Treasurer is very grateful to all members for the response to his last request for payment of any arrears of ABAP subscriptions.
He has asked for one last request to be made for this ABAP year 2008/2009.
It is possible to pay by Standing Order but not Direct Debit.
Please contact Jack direct for details of this at :
Jack Shill
ABAP Hon Treasurer
41 Linkway
Crowthorne Berkshire
RG45 6ES
All Payments please to :
ABAP Subs
Unit 10
Solent Ind. Est.
Hedge End
Southampton
SO30 2FX
7. 2009 AGM Date
Please mark your calendars now :
ABAP AGM THURSDAY 8th OCTOBER 2009
Ignore all other offers.
Thanking all Members for their continuing support.
The Committee of ABAP 23 February 2009