Airport to retain final salary pension scheme
28.09.10
Birmingham Airport’s final salary pension scheme is to be retained despite a deficit of £26m, in a major boost for nearly 400 workers, the Post reports. A ‘dogged’ campaign by the Unite union has led to a compromise that is likely see a modified pension scheme still based on airport employees’ final salaries retained.
The airport launched a 90-day consultation programme earlier this year in a bid to save costs after the scheme ran up a deficit of £26m. If the current scheme, which enjoys company contributions of more than 20%, is scrapped, it would cost workers many thousands of pounds, hitting their retirement plans.
The final details of the compromose are still to be agreed, but Unite regional official John Partridge told the newspaper union leaders were optimistic of an agreement that will keep the scheme. He said: ‘The company has come up with a proposal that will retain the final salary scheme. It is not as good [as the current scheme], but it means the nearer staff are to retirement, the nearer they will get to what they expected.'
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