BA agrees new pensions deal, leaves room to pay dividend to IAG
British Airways has agreed to pay GBP300m per year into its pension scheme, plus top-ups, under a new plan which leaves room for the airline to pay dividends to owner IAG. IAG said the new funding deal was based on a valuation of the scheme's position at the end of March 2015, which put the technical deficit at GBP2.8b (US$3.4b), compared with the GBP2.7b recorded 3 years earlier. Under the deal, BA will make fixed deficit contributions of GBP300m per year until 2027 - broadly in line with the amount it paid under the previous 3-year term. Depending on its cash levels, it could also pay up to an additional GBP150m into the scheme each year. The deal reassured investors after the company said in July it needed more time to agree the terms. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2016-10-27/oneworld/ba-agrees-new-pensions-deal-leaves-room-to-pay-dividend-to-iag
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BA agrees new pensions deal, leaves room to pay dividend to IAG
British Airways has agreed to pay GBP300m per year into its pension scheme, plus top-ups, under a new plan which leaves room for the airline to pay dividends to owner IAG. IAG said the new funding deal was based on a valuation of the scheme's position at the end of March 2015, which put the technical deficit at GBP2.8b (US$3.4b), compared with the GBP2.7b recorded 3 years earlier. Under the deal, BA will make fixed deficit contributions of GBP300m per year until 2027 - broadly in line with the amount it paid under the previous 3-year term. Depending on its cash levels, it could also pay up to an additional GBP150m into the scheme each year. The deal reassured investors after the company said in July it needed more time to agree the terms. <br/>
