Civil Aviation Act 1978

12 Pensions of staff of British Airways Board, its subsidiaries and predecessors

(1) Section 18 of the [1977 c. 13.] British Airways Board Act 1977 (pensions) shall cease to have effect and the following provisions of this section shall have effect instead.

(2) The Board may pay pensions, allowances or gratuities to or in respect of such of the persons to whom this section applies as may be determined by the Board, or may make arrangements for the making of such payments.

(3) Any such arrangements may provide for the establishment and maintenance of one or more schemes for making such payments and, until the contrary is provided by any such arrangements, the scheme in force under section 18 of the British Airways Board Act 1977 immediately before the appointed day (the existing scheme) shall be treated as having been established in pursuance of arrangements under this section and may be maintained accordingly.

(4) The persons to whom this section applies are—

(a) employees or former employees of any member of the group; and

(b) persons to whom the existing scheme applied immediately before the appointed day.

(5) Where a participant in a scheme maintained under this section—

(a) becomes, or has before that day become, a member of the Board or a director of any other member of the group; or

(b) has at any time before 1st April 1974 become a member of either of the corporations or a director of an undertaking which was a subsidiary or joint subsidiary of either of the corporations at the time when he became a director of it,

his service as such a member or director (including any service at any time before the appointed day) shall be treated for the purposes of the scheme as if it were service as an employee of the person in whose employment he was, or was treated for those purposes as being, when he became such a member or director.

(6) In this section—

• " appointed day " means the day appointed for the coming into force of this section ; " subsidiary " and

• " joint subsidiary " have the same meanings as they had in Part III of the 1971 Act; and other expressions have the same meanings as in the [1977 c. 13.] British Airways Board Act 1977.