The Company operates two principal funded defined benefit pension schemes, the Airways Pension Scheme (APS) and the New Airways PensionScheme (NAPS), both of which are in the UK and are closed to new members. APS has been closed to new members since 1984 and NAPS closed tonew members in 2003.
The Company’s principal defined contribution scheme is the British Airways Retirement Plan (BARP), of which all newpermanent employees over the age of 16 employed by the Company and certain subsidiary undertakings in the UK may become members.
Benefits provided under APS are based on final average pensionable pay and, for the majority of members, are subject to inflationary increases in
payment in line with the Annual Review Orders (ARO) issued by the Government, which are based on the Consumer Price Index (CPI). Benefits
provided under NAPS are based on final average pensionable pay reduced by an amount (the ‘abatement’) not exceeding one and a half times the
Government's lower earnings limit. NAPS pension increases are also linked to the ARO and increases are capped at a maximum of five per cent in any
one year. In NAPS, annual pensionable pay increases for active members are capped at RPI.
.