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BA staff retirement age to rise
The retirement age of British Airways pilots and cabin crew is to rise as the airline seeks to clear a £1 billion black hole in its pension scheme.
The retirement age is to go up from 55 to 60 initially but will rise to 65 after five years.
This will reduce the airline’s pension deficit by £450 million and BA pledged to pay an additional £500 million into the scheme if staff accept the changes.
Cheif executive Willie Walsh said: “These changes are necessary to clear the past deficit and to contain the amount of future funding needed.
“It means working longer to get a similar annual pension, but one that is more secure. This should address the pension problem at British Airways once and for all.”
He added: “After the changes are accepted, the airline will make a payment of £500 million into the fund. This is on top of £350 million the company will have paid towards the past deficit by December 2006.
“The changes to members’ future benefits will reduce the anticipated deficit by £450 million. We will also be able to make contributions for future service we can afford.
“This package of measures is vital if we are to achieve a competitive cost base, deliver a 10% operating margin, be fit for growth and invest in our future.”
Report by Phil Davies
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