What if I fall ill
Under the Rules of NAPS, you can draw your pension straight away if you are:
- retired by BA because of a medical incapacity from which, in the opinion of BA's medical adviser, you will not recover in the foreseeable future and this prevents you from carrying out your normal duties even after reasonable adjustment, or prevents you from carrying out appropriate alternative employment where this is offered by the Company; or
- a pilot or engineer officer and you lose your licence due to medical reasons before Normal retirement age.
Note: Appropriate alternative employment means employment which, in the opinion of the Company, is suitable and reasonable employment taking account of your skills and current salary level.
When you retire we will confirm the date that the Trustees will review your pension for the first time.
While you are under your Normal retirement age, payment of your ill health pension will be reviewed regularly and the Trustees can vary, suspend or revoke payments in certain circumstances. The Trustees may ask for evidence of your continuing incapacity at any time and/or suitable evidence of any earnings you may be receiving whilst also receiving an ill health pension.
How your ill health pension would be worked out:
Final Salary
- If you have five or more years of Pensionable service, or if infirmity results from an air accident on duty, we calculate your pension as a percentage of your salary based on the years, months and days that you've been a member of the Scheme plus half the service you would have completed between the date you retire on ill health grounds and your selected Normal retirement age (i.e. if you are in Plan 60, half the potential service to age 60 would be included in the calculation of your ill health pension. If you are in Plan 65, half the potential service to age 65 would be included. Elections for Option 55 are ignored when calculating the half potential service and half potential will be calculated to age 60 for Option 55 members). The additional pension relating to half the potential service is always calculated on the standard 1/75 build up rate.
- If you have under five years' Pensionable service, your pension will be based on salary and length of Scheme membership and reduced to take account of the early payment.
BAMPS
You can purchase an immediate pension from NAPS or you can use the Open Market Option to buy an annuity from an insurance company of your choice using the money in your individual retirement account.
You can exchange part of your pension for a tax-free Lump sum on retirement.
- This is currently paid tax-free. HM Revenue and Customs sets a limit for the amount you can take. If you choose this option, there will be less money for your monthly pension.
- Under Final Salary, you also give up the future annual increases on any pension you give up for cash and the pension is given up for life.
For more information on payment options, such as exchanging part of your pension for a tax-free Lump sum, see I'm thinking of retiring.
Serious ill health
If you are suffering from a life threatening illness it may be possible to receive all of your pension as a tax-free lump sum whilst continuing to provide a pension for your dependants should you die. HM Revenue & Customs (HMRC) will only allow such payments if you have a short time to live. The Scheme Rules therefore only allow serious ill health payments if your registered GP or consultant will provide written confirmation that you have less than 12 months to live. Please contact us if you wish to learn more about this option.