What is Pensionable pay?
Pensionable pay is the elements of your pay (or notional elements of your pay) designated as pensionable by British Airways. It is the pay from which you select a percentage to contribute to the Scheme. For Final Salary, we also use Pensionable pay to calculate Retiring pay.
For most NAPS Flight Staff, pensionable pay was increased by 18.75% as part of the overall NAPS scheme changes from 1 April 2007 for future service only.
For NAPS, there are 2 Pensionable pays - NAPS1 and NAPS2. NAPS Final Salary members can choose either NAPS1 or NAPS2. BAMPS uses NAPS1. NAPS1 is 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 2010-2011 is £7,566).
NAPS2 is the elements of your pay (or notional elements of your pay) designated as pensionable by British Airways reduced by 15%. NAPS2 can never produce less Pensionable pay than NAPS1. If at any time the NAPS2 Pensionable pay becomes less than the NAPS1 Pensionable pay, we will use the latter to calculate your pension. Although you would not lose any pension benefit, you may not gain 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.