British Airways’ new pension scheme to save US$112m a year

British Airways’ new employee pension scheme should result in annual savings of GBP80m (US$112m), IAG said. BA closed its New Airways Pension Scheme (NAPS) to future accrual and its British Airways Retirement Plan (BARP) to future contributions from March 31. They have been replaced with a flexible benefits scheme, incorporating a new defined contribution pension scheme, called the British Airways Pension Plan (BAPP), which offers a choice of contribution rates and the ability to opt for cash instead of a pension. BA CFO Steve Gunning said: “This is an important step in managing the risk in NAPS and ensuring the airline has an appropriate cost-base for the future. The new arrangements include a market-competitive defined contribution scheme and will stop the build-up of further liabilities and risk in NAPS." <br/>