British Airways sacks chair of pension fund

BA’s pension scheme has total liabilities of £29.2bn, and its assets are valued at £29.3bn, meaning that it is, just, in surplus (Getty)

British Airways has ousted the chair of the airline’s pension plan trustees after reports of a row over investment strategy.

The airline has confirmed that Paul Spencer’s five-year contract will not be renewed after it expires at the end of next month.

Sources told The Sunday Times that the decision followed a call from Mr Spencer, who also chairs the BT and Rolls-Royce schemes, to shift part of the pension fund’s assets into bonds rather than equities – something that could have increased the required cash injections from the parent group.

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The airline is already taking legal action against an earlier decision of the pension fund’s trustees to increase contributions.

BA’s pension scheme has total liabilities of £29.2bn, according to the company’s most recent report. Its assets are valued at £29.3bn, meaning that it is, just, in surplus.