British Airways discharges GBP4.4b in pension liabilities
British Airways has offloaded GBP4.4b in pension liabilities to an insurance company in a bid to cap its pension responsibilities. Legal & General will effectively take over the liabilities for 22,000 British Airways pensioners in the largest deal of its kind in the UK. The aim of the “bulk annuity” deal is to protect BA from higher pension costs in future, which could happen because of poor investment returns or unexpected increases in life expectancy. For years, BA has struggled to shed its reputation as a company with a huge and costly pension scheme with an airline attached. The BA pensioners affected are in the Airways Pension Scheme (APS) which, according to the 2017 annual report, had total liabilities of GBP7.7b. Virginia Holmes, chair of the trustee board for APS, said the deal would reduce risk and increase security for members. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2018-09-14/oneworld/british-airways-discharges-gbp4-4b-in-pension-liabilities
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British Airways discharges GBP4.4b in pension liabilities
British Airways has offloaded GBP4.4b in pension liabilities to an insurance company in a bid to cap its pension responsibilities. Legal & General will effectively take over the liabilities for 22,000 British Airways pensioners in the largest deal of its kind in the UK. The aim of the “bulk annuity” deal is to protect BA from higher pension costs in future, which could happen because of poor investment returns or unexpected increases in life expectancy. For years, BA has struggled to shed its reputation as a company with a huge and costly pension scheme with an airline attached. The BA pensioners affected are in the Airways Pension Scheme (APS) which, according to the 2017 annual report, had total liabilities of GBP7.7b. Virginia Holmes, chair of the trustee board for APS, said the deal would reduce risk and increase security for members. <br/>
