Information for IFAs
The information provided on this page is designed to provide financial advisers with relevant information required in conjunction with the provision of independent advice to members of the
New Airways Pension Scheme (NAPS).
The information is subject to the provisions of the Scheme's Trust Deed and Rules. If there is a difference between the Trust Deed and Rules for the Scheme and the information provided on this page, the Trust Deed and Rules will prevail. The Trust Deed and Rules for the Scheme are on the Scheme documents page.
New Pension Wise guidance regulations from 1 June 2022
New regulations have come into force which are intended to increase the take-up of free pensions guidance from Pension Wise, in order to help individuals make informed decisions about their options when accessing defined benefit pensions that include Additional Voluntary Contributions (AVCs). When an individual applies to draw or transfer out their pension, we will direct them to appropriate pensions guidance available through Pension Wise.
When an individual applies to draw their Scheme pension benefits, we will:
- Offer to book a Pension Wise appointment for them; and
- Provide them with details to allow them to book an appointment themselves.
We will ask our member to complete a form to confirm that:
- They have received Pension Wise guidance; or
- The guidance does not apply to them (for example, because they have received regulated retirement advice within the previous 12 months); or
- They wish to opt out of receiving Pension Wise guidance.
We have published our Pension Wise Guidance pack on the Forms page of our website. The pack includes details about Pension Wise and the relevant forms to fill in when our member draws their pension benefits.
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If a member left the Scheme after 31 March 2007 they would have built up a pension in respect of service up to 31 March 2007 (for which the NRA was age 55 for flying staff or age 60 for ground staff) and a pension in respect of service after 1 April 2007 in either Plan 60 (for which the NRA is age 60) or Plan 65 (for which the NRA is age 65). The member may therefore have elements of pension which have different NRAs but they are treated as a single pension entitlement and must be drawn at the same time.
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NAPS deferred pensions increase as a right under the Rules of the Scheme up to NRA. The increase is in line with that specified in the Government's yearly Pensions Increase (Review) Orders up to a maximum increase of 5% in any year. These Orders currently reflect the increase in the Consumer Prices Index (CPI) but the method of measurement is determined by the Secretary of State and may change from time to time.
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NAPS increases Guaranteed Minimum Pensions (GMPs) up to GMP Age (age 60 for women and 65 for men) in line with S148 Orders.
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The Government has said that it believes that GMPs built up by men and women should be treated equally. On 26 October 2018, the Trustee of the Lloyds' Banking Group pension schemes asked the Court to clarify the position for its schemes. The Court decided that the Lloyds Banking Group pension schemes should equalise GMPs for men and women but the ruling affects all pension schemes where GMPs have been built up. Further information on what impact this has on members' benefits can be found on our website: www.mybapension.com/naps/faqs/deferred-members.
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The Scheme complies with current anti-franking legislation
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In the event of the member's death before the pension commences, if no Adult Survivor's pension is payable, a refund of the member's own Scheme contributions, plus interest at 3.5% a year up to the date of death, would be payable. If the member has an AVC account the value of the account at the date of death would be added to any lump sum death benefit payment.
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The Adult Survivor's pension shown on the Benefits Summary would be payable to the member's legal spouse or civil partner. If there is no legal spouse or civil partner at the date of death, the Trustee has a discretionary power to pay this benefit to a 'surviving dependant'. A surviving dependant is someone who is, in the opinion of the Trustee, financially dependent on the member to a substantial extent at the date of the member's death; or who, to the Trustee's satisfaction, is financially interdependent with the member and will need the extra income to sustain the same standard of living that previously depended on joint income, e.g. someone who lived in a relationship with the member that closely resembled marriage.
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Pensions in payment are not guaranteed to be paid for a minimum period.
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Pension increases are a right under Scheme rules and are in line with the Government's Pensions Increase (Review) Orders, subject to a maximum of 5% in any year. The increases over the last five years have been as follows:
| 2024 |
2023 |
2022 |
2021 |
2020 |
| 5.0% |
5.0% |
3.1% |
0.5% |
1.7% |
Pension increases are applied to the whole pension inclusive of GMP liability before GMP Age (age 60 for women and 65 for men). After GMP Age the increase is only applied to the excess pension over the GMP. Post '88 GMPs are increased by legislation up to a maximum of 3% in any year after GMP Age or before GMP Age for spouse's/civil partner's benefits. Scheme increases are generally applied in April each year and apportioned in the first year according to the date of leaving. The Rules do not provide for any Discretionary Increases. There is no minimum guarantee period for payment of the pension. There is no bridging/supplementary pension provided.
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