British Airways NAPS triennial valuation

About this update from International Consolidated Airlines Group Sa

[{"type":"text","content":"\n \n \n \n INTERNATIONAL CONSOLIDATED AIRLINES GROUP, S.A.\n \n \n \n \n British Airways New Airways Pension Scheme triennial valuation and deficit contributions\n \n \n \n International Airlines Group (IAG)'s subsidiary British Airways announces that it has signed an agreement with the Trustee of its New Airways Pension Scheme (NAPS) on the scheme's regular triennial valuation.\n \n \n The valuation, based on the scheme's funding position as of 31 March 2021, shows an agreed technical provisions deficit of £1.65 billion compared to a deficit of £2.4 billion as of 31 March 2018. The 2021 valuation agreement supersedes the deferral agreement signed in 2021 relating to the deferral of contributions of £450 million that were previously due between October 2020 and September 2021.\n \n \n The reduction in the deficit between 2018 and 2021 has been mainly as a result of British Airways' contributions of £1.3 billion between April 2018 and September 2020 and the outperformance of asset returns over the previous discount rate, partly offset by the impact of the UK Government's reform of its RPI inflation measure, aligning it with CPIH from 2030.\n \n \n Since 31 March 2021, the funding level of the scheme has considerably improved to the extent that NAPS was in surplus on the same basis as the 2021 valuation and remains in surplus as of 6 December 2022. This improvement in funding has arisen in large part due to the increase in UK government bond yields, which has increased the discount rate applied to pension liabilities, combined with positive relative returns from the scheme's asset portfolio. Due to an existing overfunding protection mechanism that remains in place, British Airways is not expecting to be required to make contributions to NAPS for the foreseeable future.\n \n \n The main terms of the agreement are:\n \n \n -  A technical provisions deficit of £1.65 billion;\n \n \n -  The overpayment protection mechanism that was agreed at the time of the 2018 valuation has been amended as part of this agreement, whereby monthly deficit contributions will be suspended if the funding ratio on a technical provisions basis, which is tested each month, reaches 100 per cent or more;\n \n \n -  As a result of the overpayment protection mechanism, British Airways does not expect to make any contributions because of the fund...

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