East Midlands MEP Roger Helmer, UKIP’s Spokesman for Energy & Industry, has today written to Steve Webb MP, Minister for Pensions, on behalf of constituents and former employees of the nairline BMI, who will suffer serious losses on their pensions as a result of the recent sale of BMI to International Airlines Group (British Airways). British Midland Airways, formerly owned by Deutsche Lufthansa, has told existing BMI pensioners that changes are being made ahead of the takeover.
The sale of BMI will mean a cut in the final salary pensions of the airline’s workers, causing some former employees to lose 10% of their expected pensions, and payments will be capped depending on age at retirement.
The final salary pension scheme is being entered into the Pension Protection Fund, a scheme that normally provides a backstop when a company becomes insolvent. Roger Helmer says: “I am pleased that BMI, a small airline facing financial difficulties, has been bought by IAG, rather than becoming insolvent. But employees should be entitled to see the pension rights that they have earned through the years, protected by the new owners”.