BBA Aviation has revealed it has closed its UK defined benefit (DB) scheme to future accrual, following a consultation with members.
The decision to close the BBA Income and Protection Plan (IPP), agreed on 31 May, was announced in the company's interim report published on 2 August.
Members of the IPP will now be enrolled into the company's defined contribution plans.
The 31 March 2015 triennial valuation of the UK scheme showed it had a funding deficit of £45m.
Closing the scheme to future accrual led to a $1.5m (£1.13m) curtailment loss, according to the report.
BBA Aviation said it has also revised its payment schedule to plug the UK deficit. In the first half of 2016 it agreed to commit £3m per year over the next five years, and then £2.7m per year until 2034. The latter payments will be made through an asset-backed funding arrangement, which consists of a Scottish Limited Partnership formed between two newly incorporated subsidiaries of the group and the trustee.
There was an accounting net deficit of $49.4m (£37.31m) across the company's UK and US pension schemes as of 30 June, according to its IAS 19 valuations
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