BA staff pension age rises to save money
24th March 2006 by Richard Lee
British Airways is planning to raise the retirement age of some of its staff to help plug a £1bn ‘black hole’ in its pension scheme.
The proposals include raising the compulsory retirement age for cabin crew from 55 to 60, although this could well go up again to 65 within five years. The planned moves will cut the company’s pension deficit by an estimated £450m.
The airline has promised to pay an extra £500m into the pot once the changes have been made and has pledged that its lucrative final salary scheme will be maintained.
Willie Walsh, BA chief executive, said: “The change will provide competitive, affordable pensions for the future.”
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