Pension Associates
Suites 607 / 608 New World Tower One,
16 – 18 Queens Road Central
Hong Kong SAR China
e: info@Pension-associates.com
Breaking news
JAL has asked existing retirees to accept a cut in their pension in order to free up cash flow for the company. If they refuse, this may potentially put JAL in a financially difficult position
BA cannot ask their retirees to reduce their pensions, therefore if BA was to go into receivership, these pensions are at risk under the Finance Act 2004.
(see Turner and Newall case Mr Mellalieu,)
In the Press
14/12/09
BA’s 3.7bn pension Deficit Piles Pressure on airline
4/06/09
British Airways won’t rule out pension Closure
17/07/09
Guardian – British Airways Alarms Experts with changes
to guarentees
03/03/09
BBC News BA’s pensions deficit reaches 195bn Q&A
06/11/08
BA’s Deficit dwarfs market value
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Final Salary Pensions Schemes are mainly underfunded.
Although these comments could apply to any number of Final Salary Schemes, it is British Airways that has come under both Press and Industry scrutiny over the last 12 months.
You can review the press commentary below for more detail of the ominous warning signs coming out from British Airways that are reminiscent of; Champion Sparkplugs,Woolworths , Turner and Newell and M.G.Rover Group , all very real examples of companies that have folded and taken the Final Salary Pension Scheme monies with them.
These are just some of the extremely compelling reasons why all British Airways staff should urgently review their Pension Holdings
1 - The company suffered a GBP 401 Million loss last year.
2 - The size of the existing Pension Deficit is independently put at around GBP 3.7 Billion
3 - This deficit is around twice the Companys value.
4 - The Company have persuaded Trustees of the Retirement Fund to surrender Bank Guarentees that would have been triggered if the Company went bust.
Finally, Pension Transfer figures from Final Salary Pension Schemes have never been higher than they are currently due to the low Interest Rate environment at present.
In summary ;
a) The British Airways Pension Fund has an enormous deficit, and , quite simply, there are no immediate solutions.
b) Any number of Final Salary Schemes are in a similar position.
c) There is reducing protection in place for employees of firms that go bust [ see final link below ].
d) The ONLY way of taking complete control of your accumulated Pension Fund is by transferring it Offshore wehere both the quantum and underlying assets can be held and managed in a secure, Tax Neutral environment.
TALK TO PENSION ASSOCIATES NOW.
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