BAE to pay £2bn to fill pension scheme hole

BAE to pay £2bn to fill pension scheme hole

FD says company will use same approach to close other UK and US schemes

Defence contractor BAE Systems is under fire over plans to pay a bill of
almost £2bn to fill the hole in its pension schemes.

Despite announcing healthy annual results including a 16% rise in profits,
the news was overshadowed by details given of plans to close the hole in its
main UK pension fund.

The deficit stands at £2.4bn on a post-tax actuarial basis and will be met
60% by the company and 40% by employees.

BAE’s finance director George Rose said a similar strategy would be adopted
to tackle the deficit in its remaining UK and US schemes, which stands at about
£400m on a post-tax actuarial basis.

Employees will have to forego about £1bn in retirement benefits to fill the
remainder of the hole.

Share

Subscribe to get your daily business insights

Resources & Whitepapers

Why Professional Services Firms Should Ditch Folders and Embrace Metadata
Professional Services

Why Professional Services Firms Should Ditch Folders and Embrace Metadata

3y

Why Professional Services Firms Should Ditch Folde...

In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...

View resource
2 Vital keys to Remaining Competitive for Professional Services Firms

2 Vital keys to Remaining Competitive for Professional Services Firms

3y

2 Vital keys to Remaining Competitive for Professi...

In recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...

View resource
Turn Accounts Payable into a value-engine
Accounting Firms

Turn Accounts Payable into a value-engine

3y

Turn Accounts Payable into a value-engine

In a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...

View resource
Digital Links: A guide to MTD in 2021
Making Tax Digital

Digital Links: A guide to MTD in 2021

3y

Digital Links: A guide to MTD in 2021

The first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...

View resource