British Airways has missed the regulatory deadline for agreeing a plan to fill its multibillion pound pension deficit, because of a legal dispute over increased payouts for retired workers. By June 30, the airline was meant to have agreed a way of making good the funding deficit in its two main pension schemes, which stood at GBP3.3bn in 2012. But, on Tuesday, its parent company, International Airlines Group, revealed that this deadline had not been met. “International Airline Group’s subsidiary, British Airways, has been in discussions for several months with the trustees of its main UK defined benefit pension schemes, over the schemes’ latest actuarial valuations,” said Enrique Dupuy de Lome, CFO with IAG. “The discussions, initially focused on British Airways’ largest scheme (the New Airways Pension Scheme), have been constructive. However, further work is required beyond June 30, 2016 to finalise the valuations and conclude a satisfactory agreement.” Following news of its failure to reach an agreement, IAG denied it was in dispute with the schemes’ trustees over the funding valuation process, which is carried out every three years. However, in a message to members of the Airways Pension Scheme (APS), the smaller of the two BA schemes, the trustees cited a separate legal dispute with the airline as the reason for the delay.<br/>