BAE Systems to plough £500m into pension scheme
Aerospace and defence group expected to make moves to reduce £2.8bn pension deficit
Aerospace and defence giant BAE Systems is believed to be on the brink of
pumping £500m into its pension scheme.
According to the Sunday Times the maker of the Eurofighter is in
discussions with employees to plug its £2.8bn pension deficit with the £500m
payment. The sum is expected to be a mix of assets and cash.
BAE Systems has the UK’s second biggest pension deficit as a proportion of
its market cap. British Airways has the largest.
Companies with large deficits will be weighed down even further next year
when the Pension Protection Fund, the state’s safety net for the pension plans
of failed companies, is expected to raise the levies it receives from companies.