NAPS Pension Scheme

The New Airways Pension Scheme (NAPS) is the British Airways pension scheme. More information about the scheme is available on*. St. James's Place accepts no responsibility or liability for the information below.

NAPS is a very generous defined benefit pension arrangement. You earn pension entitlement based on your length of service and your final pensionable salary.

Advantages of NAPS

  • It gives a guaranteed pension at the point of retirement that is payable for the rest of your life.
  • Currently the pension is largely protected against inflation – it increases in line with the rise in the consumer prices index up to a maximum of 5% per annum (this may change in the future).
  • It provides generous benefits for your partner and dependants.

Disadvantages of NAPS

The risks of the pension scheme are largely in the deficit provisions and the solvency of British Airways itself. In theory, taking a pension with British Airways under the New Airways Pension Scheme is a low-risk strategy. It is very unusual for benefits under a defined benefits scheme such as NAPS to be defaulted upon or indeed even reduced. This does of course depend on the successful management of the scheme including that the deficit doesn’t grow out of control.

In the worse-case scenario, the Pension Protection Fund is there to provide some form of additional security. It is not designed, however, to take over the responsibility of a pension scheme unless an employer has become insolvent.

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