What is Pensionable pay?
Pensionable pay is made up of the elements of your pay (or notional elements of your pay) designated as pensionable by British Airways. It is the pay upon which you pay contributions to the Scheme. Your Scheme contributions are calculated as a percentage of this pay. For Final Salary, we use Pensionable pay to calculate Retiring pay.
For NAPS, there are 2 Pensionable pays - NAPS1 and NAPS2. The default option is NAPS1 but NAPS Final Salary members can choose NAPS2 as an alternative. BAMPS uses NAPS1.
NAPS1 Pensionable pay is made up of the elements of your pay (or notional elements of your pay) designated as pensionable by British Airways reduced by an amount broadly equivalent to 1.5 times the Current single person's Basic State Pension (the reduction for 2011-2012 is £7,956).
NAPS2 Pensionable pay is made up of the elements of your pay (or notional elements of your pay) designated as pensionable by British Airways, reduced by 15%. NAPS2 can never produce a lower Pensionable pay than NAPS1. If at any time the NAPS2 Pensionable pay becomes less than the NAPS1 Pensionable pay, we will use the higher NAPS1 Pensionable pay to calculate your pension. Although you would not lose any pension benefit, you may not have gained anything from paying the higher contributions to NAPS2.
The idea of reducing the Pensionable pay is that this portion of your pay is already pensioned through the Basic State Pension. So there is no need for you or British Airways to pay pension contributions on this portion of your pay.
For most NAPS Flying Staff, pensionable pay was increased by 18.75% as part of the overall NAPS Scheme changes from 1 April 2007 for future service only.