UK - BAe Systems' seven final salary schemes will be either closed to new members or modified following a review due next month.
A spokesman for the aerospace engineer confirmed that leaving the seven schemes – which are valued at approximately £9bn – unchanged was not an option.
He disclosed that two options have been tabled.
- Shutting the current schemes and opening a new scheme for all employees which could either be a money-purchase, final salary or a combination of both.
- Keeping the existing schemes open for current members and taking action to control costs, while opening a new scheme for new employees which would also be either money-purchase, final salary or a combination of both.
The spokesman added: “The review is looking at the long-term sustainability of the maximum benefit to all parties.”
It was revealed in September that the company has seen its FRS17 pension deficit rise by nearly £900m to £1.3bn since the beginning of the year.
The company’s seven schemes had a net FRS17 deficit of £455m at the start of the year but by the end of June it had grown by an additional £845m.
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