At Normal retirement age
Your pension is flexible. You can choose to use it all to provide a monthly income, or take part of it as a Lump sum on retirement. Your pension is paid from the day after you retire.
The amount you get under Final Salary
Your pension is worked out on the basis of your membership of NAPS up to 31 March 2007 and then your membership of Plan 65 or Plan 60 from 1 April 2007. An outline of the two different calculations is shown below.
Pre 2007 service pension (for service up to 31 March 2007)
Your Pre 2007 service pension is worked out as a percentage of your pensionable salary at your old Normal Retirement Age (age 55 Flying Staff, age 60 Ground Staff) based on the years, months and days that you were a member of the Scheme up to 31 March 2007 (your Pre 2007 Pensionable service).
Your Pre 2007 basic pension = (your Pensionable service to 31/03/2007 x your Retiring pay at your old Normal Retirement Age) divided by 52 build up rate (Flying Staff) or by 56 build up rate (Ground Staff).
If you paid higher contributions to have your pension worked out on a faster Build up rate, we will use this Build up rate for the period during which you paid for the faster rate.
The pension resulting from any service up to 31 March 2007 will be worked out at your original Normal Retirement Date (55 for Flying Staff, 60 for Ground Staff). The pension will then be kept aside automatically. No further service will be added to it but you will get a late retirement increase applied to this pension for the period from your old Normal Retirement Age until you actually retire. Your Pre 2007 service pension must be drawn at the same time as your Post 2007 service pension.
Post 2007 service pension (for service from 1 April 2007)
Your Post 2007 service pension is worked out as a percentage of your pensionable salary at retirement, based on the years, months and days that you pay contributions to the Scheme from 1 April 2007 (your Post 2007 Pensionable service).
Your Post 2007 basic pension = (your Pensionable service from 01/04/2007 x your Retiring pay at retirement) divided by 60 build up rate (for service after 1 October 2010 the default build up rate changed to 75).
If you pay higher contributions to have your pension worked out on a faster Build up rate, we will use this Build up rate for any period during which you pay for the faster rate.
Your pension will normally increase each year in line with the government's Pensions Increase (Review) Orders, up to a maximum of 5% a year.
The amount you get under BAMPS
The amount of money you and BA have saved to your individual retirement account, plus investment returns are used to buy a pension.
If you choose to buy a pension from NAPS, it will normally increase each year in line with the government's Pensions Increase (Review) Orders, up to a maximum of 5% a year. If you choose to buy a pension from an insurance company or other pension provider your pension will increase at the rate agreed at the time.
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.