Week ending 12 April 2019
British Airways settles dispute
After a six-year legal battle, British Airways has agreed an out-of-court settlement with the trustee directors of the Airways Pension Scheme (APS) that, subject to some affordability tests, will see members’ pensions increase by RPI from 2021. Members will also receive a one-off lump sum covering the period from 2013 to 2019, when no discretionary increases were awarded. As part of the settlement, BA will not pay any further deficit contributions to the APS, unless/until its funding level falls below 100%.
Ombudsman orders trustees to repay £2.4 million
Trustees of the Henry Davidson Limited Pension Scheme have been ordered by the Pensions Ombudsman to repay £2.4 million of mismanaged funds to the Scheme. A complaint lodged by 14 members claimed that the trustees had misrepresented the scheme, mismanaged the funds, issued fabricated benefit statements and “lost” funds that had been transferred into the scheme. TPO ruled in favour of the complainants and has given the trustees 28 days to pay back just over £2.4 million plus interest.
PPF publishes three-year plan
The Pension Protection Fund has published a three-year plan that aims to provide clarity over its long-term thinking.
Two buy-ins for Scottish Widows
The trustees of the QineteQ Pension Scheme have agreed a £690 million bulk annuity with Scottish Widows, covering about a third of the Scheme’s liabilities. Meanwhile the trustees of the Peugeot Advanced Pension Plan completed a £140 million buy-in, also with Scottish Widows, which covers all the Plan’s liabilities.