The pensions of former Flybe staff are not guaranteed, the trustees of the scheme have warned.

Following the collapse of the airline last week, it was confirmed that more than 1,300 of Flybe’s former staff’s pensions are located in the Isle of Man.

In a communication with scheme members, shared with the Examiner, it is confirmed the trustee board of the British Regional Airlines Group pension scheme ’is a potential creditor of Flybe in respect of Flybe’s obligation to fund the scheme’.

According to The Telegraph, the pension pot owed £170m benefits to 1,350 members and ’according to a valuation in 2018, the scheme had a £12m shortfall at that time’.

The letter added: ’However, if there is no corporate rescue, it is very unlikely that the trustee will receive the full funding it is owed in respect of the scheme should Flybe wind up.

’Therefore, the current deficit in the scheme is unlikely to be made good and members’ pensions will be cut back in accordance with applicable law in the Isle of Man and the UK (depending on whether you accrued your benefits as an Isle of Man member or a UK member).’

It also went on to warm members ’your pension is not secured’.

And the letter added: ’In practice, were Flybe to be wound up (which is now a possibility) it is likely the scheme will be terminated.’

If this proves to be the case and the scheme is wound up without enough money being available to plug any gaps in funding, members are warned ’you are unlikely to receive the full benefits you were expecting’.

If the company’s pension scheme had been located in the UK, it would be secured by the Pension Protection Fund, which comes to the rescue when firms go under. However, as the scheme is located here, it is not protected by the PPF.

The scheme’s registered office is at Marquis House, Isle of Man Business Park, Douglas.

Sir Steve Webb, a former pensions minister, told the Daily Mirror: ’The PPF is like car insurance - if you don’t pay, you can’t claim. It is a devastating blow to Flybe workers not only to lose their jobs but, potentially, part of their pensions as well.’

According to the Financial Times, the scheme’s board of trustees had a meeting last Thursday.

Roger Barrs, chairman of the trustees board, told the FT that this meeting was held ’to make an initial assessment of the impact of Flybe’s administration on the scheme, and to determine how best to secure the scheme’s position’.