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Information on the impact on pensions of the sale of British Midland Airways Limited (bmi) to International Airlines Group SA (IAG)

Latest news
To access the latest news please click here.

2014 Budget Announcement
As part of the recent 2014 budget the Chancellor has announced changes to how people can access their defined contribution pension savings at retirement. For information on how these changes impact on your selected option, please click here.

Summary Funding Statement
To view a copy of the latest Summary Funding Statement for the Scheme, please click here.

For information on Pension Option C – Friends Life Policy please click here. Please note that this should be read in conjunction with your letter dated 18 December 2013.

Sample calculations
Sample calculations showing how representative members could benefit from the voluntary payment of £84 million from Lufthansa are now available here.

Information issued to members
To see copies of the information issued to members, please click here.

Missing member addresses
Please review the list of members for whom we do not have a current address posted here and if you are in contact with any of these people ask them to contact us urgently.

 

The L&G Worksave packs have now been issued and should be completed in full and returned to PO Box 2066, 4 Bedford Park, Croydon, CR90 9NB by 18 August 2014.

Some of you may have received duplicate forms, this is because Mike Champain also issued a copy of the declaration to those members who opted to use Champain Financial Services, to ensure you have received this. You only need to return one form to the above address by 18 August 2014.

Please note that this deadline has been agreed with the Trustees and cannot be extended. If we do not receive completed forms by 18 August 2014, you will default to the buyout policy with Friends Life.

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The bmi DC Top up options exercise is nearing completion, with over 50% of members’ options now settled.

As you know, at this late stage no further changes to your selected option can be made (this includes those members who did not respond to the options letter and are now subject to the default). In order to both ensure benefits are discharged as quickly as possible and to manage future expenses please be advised that both the bmi mailbox and the telephone helpline is now closed. We hope you understand that it is necessary to take this step as any further costs incurred would have to be met by a deduction from member funds and the Trustees are keen to avoid this course of action.

The administration team is working hard to settle the remaining member benefits and politely request that members refrain from raising queries regarding the processing of options as only recorded messages will now be placed on the telephone lines and all updates will be posted on the website (details below) going forwards.

Members who had elected to transfer to the BARP or Legal & General Worksave option will be processed in the next phase, which is likely to commence in late June/early July, with the additional paperwork being issued. Further details will be updated on this website in due course.

For information, the bmi Pension Scheme Tax Reference number is 00243362RM.

Please note that in order to process options including individual transfers out and annuity purchase cases you must respond on or before the deadline outlined in your latest correspondence. Strictly no late returns will be accepted. For those members who do not respond prior to the stipulated deadline your benefits will be subject to the default option (i.e. transferred to the buyout policy with Friends Life), who will then contact you directly. Once your funds have transferred to Friends Life you can then investigate other options such as transferring to an alternative arrangement or drawing your retirement benefits.

If you have submitted all your paperwork to transfer to an alternative provider, these payments will be finalised by 31 July 2014.

For information, if you had elected the Friends Life option and this was received before early May, then your top up is currently being transferred to Friends Life. If your top up has defaulted to Friends Life this will be transferred later in the year once all other allocations have been processed.

Please continue to check the Trustees’ website for further updates and further details of the various options noted above.

Welcome to this website which has been set up for members of the British Midland Airways Limited Pension and Life Assurance Scheme (referred to on this site as the “Scheme”) by the Trustees of the Scheme to provide information about the impact the sale of bmi to IAG will have on your pension benefits.

The Trustees appreciate that throughout this difficult time you will have many questions and there will be much to tell you about. The Trustees are committed to rapid and open communication and we have set up this website to assist with this.

We intend to post on this website generic communications including updates to the Frequently Asked Questions (FAQs) prepared in response to your queries. We recommend you check this website regularly for further updates. We will continue to send paper copies of more substantive communications to your home address.

This website will not be used to communicate any personal or sensitive information about your individual benefits.

Taxation Information

For general information on the taxation of the currently available options including the pension options and the Winding Up Lump Sum option (only available if your total allocation is less then £18,000) click here.

Members with allocations over £18,000 have the option to defer receipt of their allocation to see if a viable cash option may become available at a later stage if BPAG can successfully challenge HMRC’s current view on the tax and national insurance treatment of a cash option. Click here for a summary of the range of possible tax treatments of the cash option if a successful challenge can be mounted. The examples also show for comparison the effect of the tax treatment of the currently available pension option. Please note there is no guarantee that any of the cash options illustrated will be available as this depends on the outcome of any challenge.


Contact us
Please send your questions to us at:

  • The Trustees of the British Midland Airways Limited Pension and Life Assurance Scheme
    c/o Mercer Limited
    PO Box 434
    Chichester
    PO19 3ZU
 

Useful links

  • Pension Protection Fund: Details about the Pension Protection Fund (PPF) can be found on their website www.pensionprotectionfund.org.uk. This includes a booklet called ‘What is the Pension Protection Fund’ which contains further details about the PPF and what happens during the assessment period. Click here to view the booklet.
 

Frequently asked questions

  • Questions have been collated by the Scheme’s administrators and answers provided. Click here to view the most recent FAQs (updated
    March 2014).