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British Airways: Pension scheme deficits agreed with trustees

15-Dec-2009 10:30 AM

British Airways and the trustees of the Airways Pension Scheme (APS) and the New Airways Pension Scheme (NAPS) reached (14-Dec-2009) provisional agreement on how to calculate the deficits in each pension scheme, as at 31-Mar-2009. On the basis of this agreement, the deficit in APS would be GBP1.0 billion and the deficit in NAPS would be GBP2.7 billion. The airline and trustees will now work together to develop a recovery plan, a process which will involve the company consulting with employees and their trade unions. The regulatory deadline for the valuation process, including agreement on future contributions required and the recovery plan, is 30-Jun-2010. Iberia is reportedly "not surprised" by the GBP3.7 billion deficit, as it "falls within the expected range" (Reuters, 14-Dec-2009) [more]