UK - BAE Systems has ruled out any increase in employee contributions as the company moves to plug its multi-billion pound pensions deficit.
However the company is considering cutting payments for workers who take early retirement and changing the calculation of pension payments so that they are based in the future on career wage averages, rather than on the last 12 months before retirement.
BAE Systems recently revealed plans to inject £500m into its £2.8bn deficit amid talks with employee representatives over the underfunding of its scheme.
A spokesman for the British aerospace group said the firm had offered a “whole raft” of proposals designed to wipe out the remaining deficit. The early retirement disincentives and new pension calculation were part of those proposals. The company was not prepared to go into more detail about the proposals while still in negotiations but the spokesman said BAE hoped an agreement could be reached before year-end.
The plan to maintain the same level of employee contributions comes two years after workers were hit with a 4.3% increase - almost double the previous rate. The company also upped payments to 18.2% of its wage bill to cope with the deficit.
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