Financial Express (Holdings) Limited (“we”, “our”, “us” and derivatives) are committed to protecting and respecting your privacy. This Privacy Policy, together with our Terms of Use, sets out the basis on which any personal data that we collect from you, or that you provide to us, will be processed by us relating to your use of any of the below websites (“sites”).


For the purposes of the Data Protection Act 1998, the data controller is Trustnet Limited of 2nd Floor, Golden House, 30 Great Pulteney Street, London, W1F 9NN. Our nominated representative for the purpose of this Act is Kirsty Witter.


We collect information about you when you register with us or use any of our websites / services. Part of the registration process may include entering personal details & details of your investments.

We may collect information about your computer, including where available your operating system, browser version, domain name and IP address and details of the website that you came from, in order to improve this site.

You confirm that all information you supply is accurate.


In order to provide personalised services to and analyse site traffic, we may use a cookie file which is stored on your browser or the hard drive of your computer. Some of the cookies we use are essential for the sites to operate and may be used to deliver you different content, depending on the type of investor you are.

You can block cookies by activating the setting on your browser which allows you to refuse the setting of all or some cookies. However, if you use your browser settings to block all cookies (including essential cookies) you may not be able to access all or part of our sites. Unless you have adjusted your browser setting so that it will refuse cookies, our system will issue cookies as soon as you visit our sites.


We store and use information you provide as follows:

  • to present content effectively;
  • to provide you with information, products or services that you request from us or which may interest you, tailored to your specific interests, where you have consented to be contacted for such purposes;
  • to carry out our obligations arising from any contracts between you and us;
  • to enable you to participate in interactive features of our service, when you choose to do so;
  • to notify you about changes to our service;
  • to improve our content by tracking group information that describes the habits, usage, patterns and demographics of our customers.

We may also send you emails to provide information and keep you up to date with developments on our sites. It is our policy to have instructions on how to unsubscribe so that you will not receive any future e-mails. You can change your e-mail address at any time.

In order to provide support on the usage of our tools, our support team need access to all information provided in relation to the tool.

We will not disclose your name, email address or postal address or any data that could identify you to any third party without first receiving your permission.

However, you agree that we may disclose to any regulatory authority to which we are subject and to any investment exchange on which we may deal or to its related clearing house (or to investigators, inspectors or agents appointed by them), or to any person empowered to require such information by or under any legal enactment, any information they may request or require relating to you, or if relevant, any of your clients.

You agree that we may pass on information obtained under Money Laundering legislation as we consider necessary to comply with reporting requirements under such legislation.


We want to ensure that the personal information we hold about you is accurate and up to date. You may ask us to correct or remove information that is inaccurate.

You have the right under data protection legislation to access information held about you. If you wish to receive a copy of any personal information we hold, please write to us at 3rd Floor, Hollywood House, Church Street East, Woking, GU21 6HJ. Any access request may be subject to a fee of £10 to meet our costs in providing you with details of the information we hold about you.


The data that we collect from you may be transferred to, and stored at, a destination outside the European Economic Area (“EEA”). It may be processed by staff operating outside the EEA who work for us or for one of our suppliers. Such staff may be engaged in, amongst other things, the provision of support services. By submitting your personal data, you agree to this transfer, storing and processing. We will take all steps reasonably necessary, including the use of encryption, to ensure that your data is treated securely and in accordance with this privacy policy.

Unfortunately, the transmission of information via the internet is not completely secure. Although we will do our best to protect your personal data, we cannot guarantee the security of your data transmitted to our sites; any transmission is at your own risk. You will not hold us responsible for any breach of security unless we have been negligent or in wilful default.


Any changes we make to our privacy policy in the future will be posted on this page and, where appropriate, notified to you by e-mail.


Our sites contain links to other websites. If you follow a link to any of these websites, please note that these websites have their own privacy policies and that we do not accept any responsibility or liability for these policies. Please check these policies before you submit any personal data to these websites.


If you want more information or have any questions or comments relating to our privacy policy please email in the first instance.

 Information  X 
Enter a valid email address

British Airways PLC (BAY)

  Print      Mail a friend       Annual reports

Monday 14 December, 2009

British Airways PLC

Pension scheme deficits agree

RNS Number : 0436E
British Airways PLC
14 December 2009


British Airways and the trustees of the Airways Pension Scheme ("APS") and the New Airways Pension Scheme ("NAPS") have reached provisional agreement on the actuarial basis to calculate the deficits in each pension scheme as at March 31, 2009. 

On the basis of this agreement, the deficit in APS would be £1.0 billion and the deficit in NAPS would be £2.7 billion.  

British Airways, working with actuarial advisors Hewitt Associates and KPMG, and the schemes' trustees, advised by Watson Wyatt, have taken extensive independent advice in arriving at this agreement. This includes a thorough assessment of the company's credit status, which is a standard requirement of the funding review, undertaken by PricewaterhouseCoopers ("PwC") on behalf of the trustees.

The airline and trustees will now work together to develop a recovery plan, a process which will involve the company consulting with employees and their trade unions. The regulatory deadline for the valuation process, including agreement on future contributions required and the recovery plan, is June 30, 2010.  

Both the valuation and the recovery plan are subject to review and approval by the Pensions Regulator. The Regulator has had only limited information, and has not had the opportunity to carry out a detailed assessment of the assumptions used. The Regulator's provisional view is that the technical provisions may be materially below a level it feels appropriate. The trustees and BA look forward to working with the Regulator to complete a detailed review.

To avoid concerns about any perceived conflict of interest with his role in the Iberia merger, British Airways has asked Roger Maynard to step down as the chairman of trustees of the boards of APS and NAPS to focus on his Iberia role. A replacement will be appointed shortly. British Airways would like to thank Roger for his outstanding contribution and diligence in his role as chairman of trustees over the last five years.


Pension liabilities extend over very long periods of time. APS and NAPS are expected to pay benefits for over 80 years. As a result pension valuations are highly sensitive to the assumptions used in the valuations.

Funding regulations prescribe that a level of prudence is factored into the assumptions to reflect the risks associated with the nature of the assets and liabilities as well as the covenant of the scheme sponsor.  

In determining the assumptions for the valuation, the trustees and their advisors have considered the covenant of British Airways as determined by PwC, who have supported the trustees on covenant matters for more than four years.

The valuation approach and methodology is consistent with that used for the last triennial valuations in 2006. The detailed reports of these valuations can be found at  

The assumptions agreed between the trustees and British Airways are summarised below and result in the agreed combined deficit of £3.7 billion.  

If the valuation results were compared with a best estimate approach, i.e. looking at how the assets might on average be expected to perform over time, without any allowance for prudence, this would give a combined deficit of approximately £1 billion. This implies the prudence margin is valued at around £2.7 billion, or some 20 per cent of the liabilities on this basis.


If the valuation results were compared with an "all-gilts" approach, i.e. looking at how the assets might be expected to perform over time, without any allowance for investment out-performance above gilts, this would give a combined deficit of approximately £8 billion.


Discount rate 

APS - set with a term-dependent discount rate using a full nominal gilt curve, with an addition of 0.5 per cent. This is equivalent to a single discount rate of approximately 4.6 per cent per annum.

NAPS - 6.1 per cent per annum, equivalent to 2.5 per cent compound real return over inflation. This is set by taking a prudent view of the anticipated return on the expected portfolio of assets at different durations relating to the liabilities of the scheme.

Price inflation 

Break-even inflation is derived from the difference between the full index-linked and nominal gilt curves. The equivalent single inflation assumption is approximately 3.1 per cent per annum in APS and 3.5 per cent in NAPS, reflecting the different average durations of the schemes.

Pension increases 

The precise nature of increases differs by type of member and category of membership. The assumptions have been derived directly from the price inflation assumption, with an appropriate allowance for minimum and maximum increases and volatility.

Life expectancy

This is based on a detailed review of the scheme experience and building in an allowance for future improvements using the medium cohort improvement factors with a floor of 1.25 per cent per annum.


December 14, 2009                                                                                                                       132/LG/09

This information is provided by RNS
The company news service from the London Stock Exchange