BA’s £133m shortfall in pensions provisions

British
Airways (BA) has called urgent meetings with unions and staff after it revealed
it needed £133m extra per year to fund its two main pension schemes.

The
extra contributions are needed to fund BA’s final salary schemes, presently
holding the savings of 100,000 current and former workers.

The
sum exceeds the £80m-£120m extra predicted by City analysts and was calculated
at the airline’s three-year actuarial review.

BA
has already closed its final salary schemes to new members, with all staff
starting from April this year joining the British Airways Retirement Plan, a
defined contributions scheme.

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John
Rishton, BA finance director, stressed that the airline remained committed to
its existing pensions schemes and said they would work with staff and unions to
find a ‘sensible solution’.

By Michael Millar