UK – British Airways Pensions has appointed the Bank of New York to process payments to its pension scheme members on a global basis.

“The mandate involves the management of in excess of $600m (€467.5m) annually in payments to more than 40,000 BA scheme members across 46 countries globally, and enables BA to standardise and control its payments more efficiently,” the bank said in a statement. Financial terms of the deal were not disclosed.

"Appointing the Bank of New York allows British Airways Pensions to provide an improved service to our scheme members,” British Airways Pensions managing director John Birch was quoted as saying.

“We conducted a competitive tender process which sought to identify a partner who could work with us to significantly improve the processes and controls of our benefits payments service. The Bank of New York's solution offers us this opportunity now and in the future."

"This is a prestigious win for the Bank of New York,” add the bank’s head of Europe, Tim Keaney.

“Our proprietary network of 1,600 correspondents in over 100 markets enables us to address the challenging needs of British Airways Pensions while assisting them in their corporate objective of transparency of process and cost efficiency.

“With the successful completion of a phased implementation, we are fully confident that BA Pensions can realise these benefits and the high quality associated with The Bank of New York's services."

British Airways Pensions manages two large defined benefit schemes for BA staff and former employees. The funds cover approximately 120,000 lives and have assets of more than £12bn.