BA pensioners to take court action over fund

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The Independent Online
BRITISH AIRWAYS pensioners are to go to court in a bid to overturn a decision by the airline to stop making pension contributions and instead dip into a pounds 1bn surplus in the fund.

BA is taking a holiday from further contributions by merging its old pension fund, which is in surplus, with its new one, which is in deficit.

Trustees of the old pension fund decided yesterday to back BA's move despite a ballot of pensioners in which 76 per cent voted against the merger.

Entitlements of pensioners in the old scheme which was closed off at the time of privatisation are vastly superior to those under the new scheme.

The trustees of the old scheme have decided to seek High Court approval for the merger and also to protect themselves against the possibility of being sued.

Mike Post a former BA captain who is leading the revolt promised to fight the merger.

The chairman of the trustees for both schemes is BA's finance director, Derek Stevens. Opponents argue that he has a conflict of interest. He is a beneficiary of the new scheme.