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Schedule 1

Summary of Schedule 1:

  • Final Salary pension
  • Investment Top up
  • Life Assurance & Spouse's Pension
  • Employee Cost 4% (less tax)

Schedule 1 covers all employees who joined between 1 November 2003 and 31 October 2013.

Schedule 1 provides a pension based on your final basic salary, plus financial protection for your family if you die in service or, an immediate income if you have to give up work permanently due to serious ill-health.

Visit "Your Pension Record" to get secure access to view your own pension record, run retirement quotes or update your Expression of Wish nomination (for the life assurance benefit).

The Retirement Account

There is an investment section called the Retirement Account which provides either cash or extra pension on retirement.

The Retirement Account is invested with Legal & General.  You can visit  their website  to check the value of your Account and change your investments.

Willis towers watson epa - your pension record

Legal & General – Manage your Account and AVCs

Schedule 1 - Scheme Booklet  

How it works

Core Benefits

The Core Pension is calculated as 1% of your final basic salary on leaving for each year you contribute to the Scheme. For example, after 20 years service you will receive a pension of 20% of your final basic salary payable from age 65.

Protection for you and your family

If you die in service you will be covered for life assurance of three times your basic salary, plus an immediate pension to any surviving Spouse.*

If you have to stop work permanently due to serious ill-health you may receive an immediate enhanced pension.

* If you did not join the Scheme within 6 months of becoming eligible, restrictions will apply.


The cost of providing the core benefits is shared. Employees pay 4% of basic salary, and the Company pays the balance of the cost. You receive tax relief against your contributions, and the Company operates a salary sacrifice arrangement called "Smart Pensions" which also gives relief against National Insurance Contributions.

Retirement Account

The Retirement Account is a fund which builds up to buy extra benefits at retirement. The Company pays 2% of your basic salary into the fund, and you can top this up with additional contributions (AVCs) see "Saving more for your retirement" page for more details. You choose how to invest the Retirement Account from a range of funds with Legal & General.

At retirement the fund can normally be taken as a cash sum up to the cash allowance or converted into a pension.


Core Pension
Pension Increases
Increases will apply after you retire.

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Spouse's Benefits
Your surviving Spouse would receive a pension equal to 50% of your pension on your death. Also, if you die within five years of retirement a lump sum would be paid. Please see more detail in the Scheme booklet in "Links and Downloads" or email for further information

Retirement Account
The value at retirement of your Retirement Account, including any additional contributions you have paid, can be taken as part of your cash allowance, or it can be used to "buy" extra pension from the Scheme. The Scheme offers you two rates of pension: either for your lifetime only, or to include 50% pension to your surviving Spouse on death. In either case both pensions increase whilst in payment, and the five year guarantee on death will be included.

Alternatively you may transfer your Retirement Account outside of the Scheme to another registered pension Scheme.

Cash Allowance
Under current tax rules, you may exchange part of your pension for a tax free cash sum at retirement. The cash sum allowance is broadly equal to 25% of the capital value of your pension. You can decide how much cash you want (if any) up to the maximum cash allowance. If you give up your pension for cash the Spouse's pension is unaffected and remains 50% of the pension value before the cash was taken.

Retirement Age
The normal retirement age of the Scheme is 65, you may retire earlier than age 65 with Company consent, the earliest age is 55. Your pension will be reduced on early retirement because the pension will be paid for longer. The current reduction factor is 4% for each year before age 65 with complete months pro rata (factors are subject to regular reviews and may change in the future).

Retirement Process
You can plan for your retirement by visiting "Your Core Pension Record" to run retirement quotes. You can also include the value of your Retirement Account by getting a fund value from the Legal & General website. If you wish to consider retirement please speak to a member of the Pensions Team or email

Pension Flexibility
The Core Pension provided by Schedule 1 is a final salary benefit and is therefore not affected by the new pension flexibilities that came into force on 6 April 2015. You do have the option to transfer your benefits to another pension provider to access the new flexibilities. Transferring your benefits would extinguish all rights to a pension under the Scheme and may require you to take independent financial advice.

Protection for your family on death

Death in Service

Life Assurance

Schedule 1 provides life assurance of three times your Basic Salary if you die in service, plus the value of your Retirement Account.

Expression of Wish

The lump sum does not form part of your estate, instead the Trustee has discretion to decide who receives the payment. You should therefore complete an Expression of Wish nomination for the Trustee to take this into account. Please access "Your Core Pension Record" to update your Expression of Wish.

Spouse's Pension

Your surviving Spouse would receive a pension calculated as 50% of your accrued pension plus 25% of the pension that would have otherwise been paid to you from age 65, based on your Final Basic Salary at the date of your death.

A Spouse normally means your married partner or someone living with you as husband and wife. If you do not have a Spouse but you do have someone who is financially dependent on you, the Trustee has a discretion to pay them a pension on your death.

If you are no longer paying into the Scheme

If you have left the Scheme or you are already in receipt of a pension please email for details of the benefits payable on death.

Early retirement due to ill health

Immediate Pension

An immediate pension could be payable to you if you are forced to give up work at any age as a result of permanent ill-health.

The circumstances in which you could retire due to ill-health, and the level of pension are subject to certain conditions and you must have consent of both the Trustee and your employer.


If ill-health prevents you from carrying out your normal job you might be considered for an incapacity pension. This could provide you with an immediate pension based on your accrued benefits and the Trustee may decide to waive or reduce the reduction factor usually applied on early retirement.

Chronic Ill-Health

If ill-health prevents you from ever carrying out any regular employment for any employer you might be considered for a chronic ill-health retirement. This could provide you with an immediate unreduced pension based on what you would have received had you remained in service to age 65 (if you are in Schedule 1 half of your future service would be included in the calculation).

Process for making an application

Agreement for ill-health retirement is required from both your employer and the Trustee. The decision will be based on medical evidence and taking into account your particular circumstances. Please speak to your HR department if you think this may apply to you.

Once an ill-health pension has been granted the Trustee may carry out periodic reviews and could reduce, suspend, or stop the ill-health pension if your health improves.

For members of Schedule 1 different ill-health retirement provisions apply if you did not join the Scheme within 6 months of becoming eligible.

Leaving the Company

If you leave the Company, your membership of the Scheme will cease and the following options will apply.


If you have LESS than two years' membership

You can either take a refund of your own contributions, including any additional contributions you have paid, less tax at 20%.


If you have completed at least three months membership, you may transfer the capital value of your pension benefits to another registered pension scheme.


If you have MORE than two years' membership

You will have a deferred pension entitlement.


You may transfer the capital value of your deferred pension to another registered pension Scheme.

The deferred pension is calculated using the same method as for retirement but based on your earnings and service to your date of leaving.  Your Retirement Account will remain invested until your benefits come into payment.

You can run a calculation of your estimated deferred pension using the Your Pension Record .

The Scheme administrator will contact you automatically to inform you about your benefits, normally within two months of your leaving date.

Opting Out of the Pension Scheme

If you opt out of the Scheme but remain in employment the same options as described above will apply.

If you subsequently wish to rejoin the Scheme you could only join the Airbus UK Retirement Plan and there would be restrictions on death in service and ill health benefits.

See Opting Out of the Scheme page for more details.

Moving to another Airbus company

If you transfer to another Airbus company in the UK that participates in the Scheme you may be able to continue your membership without a break in pensionable service.

If you transfer to another Airbus company overseas you may be able to stay in the Scheme if your employment is treated as a secondment. Please contact your HR Department if this may apply to you.

Saving more for your retirement

Additional Voluntary Contributions / AVCs

You can pay Additional Voluntary Contributions (AVCs) into your Retirement Account to build up higher benefits at retirement under the Scheme. It is also possible for you to save extra money for your retirement outside of the Scheme in private pension arrangements.

Paying AVCs into the Scheme

Your Retirement Account and any AVCs you pay are invested with Legal & General.  You can visit their website to check the value of your AVCs and change your investments.

The Scheme employee contribution limit is 19% of your gross pay (you need to include your 4% compulsory contributions within this). Deductions must be through the payroll, and you receive tax relief at source, although AVCs do not qualify for "Smart" Pensions.

You can start to pay or vary your AVCs by downloading the Paying Extra form.

The Fund Value at Retirement

At retirement the value of your Retirement Account including any AVCs can be taken as either cash, subject to the maximum cash allowance or converted to extra pension.

How are my AVCs invested?

You can find out more about the investment options on this page.

How does Smart Pensions work?

Your earnings are reduced by the rate of your basic contributions and the employer pays the equivalent sum into the Scheme along with its employer contributions. All pay related benefits (e.g. overtime, holiday, pay reviews etc) continue to be based on your Reference Salary, i.e. your earnings before the salary sacrifice.

Does everyone benefit from Smart Pensions?

There are some employees who might not benefit from Smart Pensions including employees on very low pay.

If you believe you may be adversely affected by Smart Pensions we recommend that you take independent financial advice.

Joining Smart pensions

Employees joining the Scheme will automatically be included in Smart Pensions unless they declare they wish to opt out by emailing

Full details of how Smart pensions work are included in the Smart booklet.


Additional Voluntary Contributions (AVCs)
Voluntary payments made in addition to your contributions to the Scheme. They will be invested to provide extra benefits at retirement.

Annual Allowance
The maximum amount of pension benefits that can be built up in any one tax year without attracting a tax charge.  The Annual Allowance for tax year 2017/18 is £40,000, but this may be less if you are an additional rate tax payer (45%) or if you have flexibly accessed benefits elsewhere.  Please contact the Pensions Team for more information.

Basic Contributions
Contributions you are required to make towards Core Benefits.

Basic Salary
Your annual rate of basic pay received from your employer. The Scheme limits the level of pay that can count towards contributions and benefits. This is called the Scheme Earnings Cap (see Scheme booklet for details).

Final Basic Salary
Basic Salary averaged over the last 12 months ending on the last day of the calendar month in which you leave service or die (whichever occurs first). This is subject to the Scheme Earnings Cap (see Scheme booklet for details).

Lifetime Allowance (LTA)
The personal limit against which the capital value of an individual's total pensions (not including State pensions) is measured. Any benefits above this limit will be liable for an additional tax charge.  The Lifetime Allowance for tax year 2017/18 is £1 million.

Normal Pension Age
Your 65th birthday.

Participating Employer
Airbus Operations Limited, Airbus Defence and Space Limited (the Principal Employer), Airbus Limited, Airbus Helicopters UK Limited, SSTL and any other employer admitted by the Principle Employer and the Trustee to the Scheme.

Pensionable Service
The number of years and complete months during which you have contributed to the Scheme.

Retirement Account
The fund in which the the Participating Employer's contribution of 2% of your Basic Salary, plus any additional contributions you pay are invested.

Scheme Year
Which is the 6th April to the following 5th April

Smart Pensions
We use salary sacrifice instead of standard deductions from pay which means that both you and the company pay less National Insurance.

Your legal husband or wife by marriage.
The Trustee also recognises Civil Partners in respect of benefits accrued after 5 December 2005, or the date entered into a civil partnership whichever occurs first.

The Trustee may at their discretion include a person who in their opinion is/was living with you as husband and wife but to whom you are not legally married.

UK pensions

I want to join the scheme

UK Retirement Plan

Investment options

Current News and past issues of Pension News

Schedule 1

Schedule 2

Schedule 3


UK pensions contacts

Pension Consultative Committee


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