I will work beyond Normal retirement age
If you choose to work beyond your Normal Retirement Age your Pre 2007 service pension and your Post 2007 service pension are treated differently. A Late retirement increase will be added to your Pre 2007 service pension and you will have four choices in respect of your Post 2007 service pension, which are described below. We will send you an update of the choices available to you just before your Normal Retirement Age. The Company's existing Intended Retirement Date remains for pilots who must apply to British Airways for permission to continue working beyond age 65.
Your Pre 2007 service pension (to 31 March 2007)
Your Pre 2007 service pension for any service to 31 March 2007 will be worked out at your original Normal Retirement Date (55 for Flying Staff, 60 for Ground Staff) or 31 March 2007 if later. The pension will then be kept aside automatically. No further service or pay increases will be added to it but you will get an additional pension for the time between your original normal retirement date and the actual date you retire. This new pension is calculated as a percentage of the pension that's been kept aside for you and is called a Late retirement increase.
Your Post 2007 service pension (from 1 April 2007)
Your Post 2007 service pension is a percentage of your pay at retirement for service you have completed after 1 April 2007 in either Plan 60 or Plan 65.
Carry on paying into your BA pension.
If you plan to work beyond your Normal Retirement Age you will automatically continue paying contributions to the Scheme. The extra pensionable service after Normal Retirement Age for which you pay contributions, plus any pay increases you receive after Normal Retirement Age will be included in your future service pension calculation.
Stop paying into your BA pension
Your Pre 2007 service pension for service to 31 March 2007 will automatically receive a late retirement increase from your original Normal Retirement Age (55 flying staff, 60 ground staff) until your final retirement date.
You can choose to stop paying your pension contributions in respect of your Post 2007 service pension - either exactly at Normal Retirement Age or at some later date of your choice. Your Post 2007 service pension is calculated at the time you stop paying contributions using the Basic pension calculation.
You can choose to keep your pension aside, as a 'crystallised' pension.
If you crystallise your pension, no further service or pay increases will be added to it. You then get an additional pension for Pensionable service between the date you stop your pension contributions and the actual date you retire. This additional pension is calculated as a percentage of the future pension that's been kept aside for you. This is called a late retirement increase.
Opt out of the Scheme
You can cease your active membership by electing to opt out of the Scheme. Once you have opted out at any time after your Normal Retirement Age, you have the choice to defer drawing your pension to a later date (called a 'deferred pension') or drawing your pension whilst remaining in employment. If you choose to defer your pension after your Normal Retirement Age (up to a maximum of age 75), a late retirement increase will be added to your pension, instead of the standard annual increase, which is in line with the government's Pensions Increase (Review) Orders, until you decide to draw it. The late retirement increases applied whilst your pension remains deferred may differ from those that are applied whilst your pension is crystallised.
If you opt out of the Scheme, you will not be allowed to rejoin NAPS. If you are an NAPS member who changes occupational category (for example a pilot or cabin crew member who changes category to ground staff and remains in employment after Normal Retirement Age) you may, subject to BA's consent, rejoin the NAPS Scheme for future pensionable service. If consent is granted, a prospective NAPS joiner will also need to satisfy the Scheme's medical advisers prior to being admitted to NAPS.
At retirement, you have some payment options such as exchanging part of your pension for a tax-free Lump sum. Thinking of retiring?
Transfer your BA pension to another scheme at or after Normal Retirement Age.
If you choose to defer drawing your pension (either by opting out of the Scheme or upon leaving BA you can transfer your pension to an alternative arrangement of your choice. If you opt out you will not be able to re-join NAPS and you will not be covered for death in service benefits.