British Airways Agrees Pension Deficit Cutting Deal With Unions

British Airways and officials of its unions have finalized a deal that the airline said will allow it to trim its $4.14 billion pension deficit. According to a company statement, the plan includes annual company pension contributions of some $550.7 million for the next 10 years and a one-time cash injection of $1.57 billion. Benefit changes include lifting the cap on total pension contributions to 30% from 15%, new tax-efficient ways of making pension contributions, and capping future pension qualifying pay raises to inflation, according to the statement. Also, flight and cabin crew now have a retirement age of 65, up from 55, in line with other BA employees.