British Airways agrees £800m payment to bolster company pension scheme

Britsh Airways (BA) has agreed a deal to inject £800m into its pension scheme in a bid to tackle a mounting deficit.


The airline is offering to make a one-off payment of £800m and annual payments of £50m for the next three years to tackle the estimated £2.1bn deficit.


The deal has yet to be agreed with unions. The firm is set to meet with them today to discuss the offer.


The GMB union has called on it to pay £1bn into the scheme.


BA’s proposal – agreed in principle by the trustees of its pension scheme – would see it pay £250m into the scheme by the end of the year, and make a further £550m payment in April.


But the deal is contingent on unions agreeing to changes to employee benefits, such as  raising the normal pension age to 65.


There are more than 33,000 active members on the company’s pension scheme, along with 20,000 deferred members, and 15,000 pensioners.

 

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