British Airways’ deficit reaches €3.1bn
UK - The actuarial deficit in British Airways New Airways Pension Scheme (NAPS) is set to rise to £2.1bn (€3.1bn) from £928m, the airline said.
Fund assets now stand at £5.846bn while liabilities are £7.907bn. This is "despite a doubling of BA's contributions and a recovery of the stock market".
It said: "The trustees have confirmed that annual contributions of £497m would be needed to fund the scheme unless changes to future benefits proposed earlier this year are introduced. This means the company's contributions would go up from five to 12 times members' contributions.
Negotiations between the company and trustees were now underway to agree a funding plan including proposed benefit changes. "Consultation continues with the trades unions."
The changes proposed include raising the normal retirement age to 65, a slower accrual rate, inflation-capped pensionable pay increases, capped pension increases on retirement at 2.5% and "sharing the impact of changes in life expectancy".
A letter from trustee chairman Roger Maynard to members stated he's been advised by PricewaterhouseCoopers that BA "could make a cash lump sum available to the scheme of more than the £500m it has proposed".