NAPS closure transitional options FAQs

There is no straightforward answer to this question. Your decision will depend on your personal circumstances. British Airways (BA) has provided a modeller within its Plan4Pensions website, which allows you to compare all the options available to help you make the decision that is right for you.

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BA will pay your cash lump sum by 31 March 2018 and you will see this on your March 2018 payslip.

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If you choose to have your lump sum paid into your account in the British Airways Pension Plan (BAPP) this will not affect the NAPS benefits you have built up to 31 March 2018. BA has advised that the contribution will be added to your BAPP account in April, after the start of the new tax year, and it will not therefore need to be included in your Annual Allowance (AA) assessment for the current tax year, which ends on 5 April 2018. What is the Annual Allowance?

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If you choose to have your lump sum paid into your NAPS AVC account, the contribution will be paid into your NAPS AVC account by 31 March 2018. This means that the contribution will need to be included in your AA assessment for the current tax year, which ends on 5 April 2018. What is the Annual Allowance?

Click here for more FAQs on NAPS AVC Accounts.

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If you choose the additional year’s service credit in NAPS it will be based on the higher of your NAPS build-up rate in force on 8 December 2017 (e.g. 1/67th or 1/60th) or the standard NAPS build-up rate of 1/75th (this may apply if your NAPS build-up rate on 8 December 2017 was 1/83rd or 1/130th). The service credit would be pro-rated for part-time colleagues.

Click here for more FAQs on the Annual Allowance (AA)

Click here for more FAQs on the Lifetime Allowance (LTA)

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As part of BA’s transitional arrangements, if you are planning to draw your pension on or before 31 March 2023 you may have an opportunity, subject to certain conditions, to transfer part or all of your new British Airways Pension Plan into your existing NAPS AVC account. This may then be used towards your 25% NAPS tax-free lump sum. There are complicated qualifying criteria for this option. Please refer to BA’s ‘Outcome FAQs’ on the BA intranet for further details.

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