The Trustee arrangements for APS with effect from 12 December 2012 are as follows:
APS is administered by 12 Trustees.
- 6 of the Trustees are appointed by British Airways.
- 1 of the Trustees is elected by active members of the Scheme, and must be an active member of APS.
- 5 of the Trustees are elected by pensioner members* of the Scheme and must be pensioner members* of APS. Adult Survivors in receipt of a pension cannot seek election but are entitled to support a nomination and to vote in a ballot.
- Where an active member vacancy results in no nominations the vacancy is opened to pensioner members* and a notice inviting nominations from both active and pensioner members* is issued.
A Trustee may remain in office for a minimum of five years and a maximum of five and a half years and is eligible for re-appointment (provided that he/she still meets the eligibility criteria for the relevant vacancy).
Nominations for the elected APS Trustees must be supported by at least ten members, pensioner members* or adult survivors in receipt of a pension in the relevant constituency. If there is more than one nomination for a vacancy a postal ballot of the relevant members is held and the result is decided on a simple majority of the votes cast.
Members who have taken Flexible Retirement cannot apply to be a pensioner member* Trustee and an active member Trustee at the same time but are eligible to vote in both active member and pensioner member* Trustee elections.
An elected Trustee may be removed from office following a postal ballot in which two thirds of the votes cast by the members in the relevant constituency are in favour of removal. A ballot may be held on written request to the Trustees by fifty of the relevant members.
* For this purpose 'pensioner members' do not include pensioners whose benefits have not yet come into payment, spouses, dependants or children in receipt of pensions and pensioners receiving only Equivalent Pension Benefits under the National Insurance Acts.
Who are the Trustees?
The Trustees are those who have been appointed or elected to manage the Trust on your behalf.
|APS Trustees||Appointed/elected||Voting category|
|Tom Mitchell||Elected||Active Members|
|Position within BA|
|Joanna Boswell||BA appointed||Head of Customer & Commercial Analysis|
|Alan Buchanan||BA appointed||Former Chief of Staff|
|Charlie Maunder||BA appointed||Head of Flight Operations|
|Philip Osmond||BA appointed||Director of Business Services|
|Peter Simpson||BA appointed||Director of Gatwick|
|Paul Spencer CBE (Chairman)||BA appointed||Independent Trustee|
How does the Trustee Board operate?
In addition to regular quarterly meetings, the Trustees have established three committees to cover Governance, Investment and Operations matters.
The committee structure ensures that all issues receive detailed consideration before they are escalated to the full board for final decision.
The Investment Committee is responsible for detailed consideration of investment initiatives, transaction related costs, strategic asset allocation decisions, reviewing the performance benchmarks, compliance with Myners proposals, evaluating the funds policy on shareholder activism and monitoring of the Statement of Investment Principles. The Committee has adopted a forward looking business plan with the primary objective of ensuring the continuing suitability of investment arrangements.
The Governance & Audit Committee is responsible for reviewing the performance of the Schemes' Advisors, ensuring compliance with regulatory requirements, risk management and audit.
The Operations Committee is responsible for payments of Scheme benefits, considering legislative and benefits changes to the Schemes, overseeing the implementation of the communication programme and monitoring management and controls.
British Airways Pension Trustees Limited
British Airways Pension Trustees Limited (BAPTL) is a company established to hold the assets of the Airways Pension Scheme (APS) and the New Airways Pension Scheme (NAPS), with BAPTL acting in law as the Custodian Trustee of the assets. The Trustees are the Directors of BAPTL.
- British Airways Pension Trustees Limited
- Holds the assets of the pension funds
- Role includes maintaining bank accounts, dealing with assets, contracts and benefit payments
- Under the directorship of the Trustees
- Wholly owns 2 subsidiary companies: BAPSL and BAPIML
- British Airways Pension Investment Management Ltd (BAPIML)
- Regulated by the Financial Conduct Authority
- 3 Directors: Paul Spencer CBE (Chairman), Cliff Pocock and Michelle McGregor-Smith as Chief Executive
- Carries out day-to-day investment management within the parameters established by the Trustees
For more information on how the Trustees and BAPIML approach two key aspects of investment please read the Corporate Governance and Socially Responsible Investment page.
- British Airways Pension Services Limited
- 3 Directors: Paul Spencer CBE and Ian Rycraft plus
- Teresa Suriyae as Managing Director
- Carries out benefits administration and finance operations
Who advises the Trustees?
Michael Pardoe and James Wintle of Towers Watson & Co are the Schemes' Actuaries. Michael Pardoe is the Actuary for APS. They advise on the Schemes' abilities to meet their commitments to members and on a range of financial matters, including what the Company needs to pay into the Schemes.
In addition, the following provide specialist advice and support:
Legal advice on specific areas is also provided by:
Mssrs Forsters LLP
Mssrs Shepherd & Wedderburn LLP
Bank of New York Mellon
External Custodian: State Street Bank & Trust Co
Financial Advisers & Internal Auditors
AllenbridgeEPIC Investment Advisers Ltd