As part of the Scheme’s regular valuations, the Scheme Actuary reviews the factors used to calculate certain pension options. Following the most recent review, some of these factors are being updated with effect from 1 November 2025. 

This change will affect members who: 

We are sharing this update now so that you are aware of how these changes could influence your decisions.
 
 
Why do factors change?
The Scheme’s Actuary reviews factors regularly to ensure they remain fair and up to date. These changes can increase or decrease the value of your pension or lump sum and may fluctuate over time. It’s important to avoid letting short-term factor changes drive your decisions as pensions are a long-term commitment.


Cash Equivalent Transfer Values (CETVs)
If you are a deferred member you may transfer your pension to another registered pension arrangement before you start drawing it.
 

Transferring your pension is a complex decision and, in most cases, you must take professional advice from an independent financial adviser.  Please note that while the underlying factors are expected to reduce CETVs, values are also adjusted monthly to reflect current market conditions.  Therefore, it is still possible for a CETV after the factor change to be higher than before.
 
 
AVC and British Airways Money Purchase Pension Section (BAMPS) conversion rates to a pension
At retirement, some or all of your AVC or BAMPS account can be taken as extra lump sum or used to buy extra pension, called an 'annuity'.
 
Most people can take all of their AVCs as a lump sum, and, BAMPS members can take up to 25% of their benefits being drawn from the Scheme as cash.  For accounts greater than the maximum permissible lump sum, eligible members can elect to convert their pension to an annuity.
 

 
Drawing your pension before Normal Retirement Age (NRA)
If you take your pension before your NRA, it will be reduced to reflect the longer period it is expected to be paid. The earlier you retire, the greater the reduction.
 

 
Drawing your pension after Normal Retirement Age (NRA)
If you take your pension after your NRA, it will be increased to reflect the shorter period it is expected to be paid.
 

Options at retirement
You can usually take a tax-free lump sum of up to 25% of the value of your Scheme benefits. If you want to take a tax-free lump sum, you can take this from your Additional Voluntary Contributions (AVCs) if you have any, or you can exchange some of your yearly pension, or both. The amount of tax-free cash we can pay you for each £1 of yearly pension exchanged is calculated using commutation factors provided by the Scheme Actuary.