Birmingham Airport to keep final salary pension
28.09.10
Birmingham Airport’s final salary pension scheme is to be retained despite a deficit of £26million in what is a major boost for nearly 400 workers, the Post reports. A ‘dogged’ campaign by the Unite union has led to a likely compromise that will see a modified pension scheme still based on airport employees’ final salaries, it has revealed.
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 around £26 million. If the current scheme, which enjoys company contributions of more than 20 percent, is scrapped, the move could cost workers many thousands of pounds, devastating their retirement plans.
The final details of the long-running negotiations 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 in place. He said: ‘The company has come up with a proposal which would 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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