British Airways to Offer Retirement Age Concessions

British Airways said on Thursday it was willing to revise a plan to raise the age of retirement for staff in return for higher pension contributions, but unions warned the concessions did not go far enough.

The two sides met to discuss proposals to tackle BA’s pension deficit and said the talks would continue. BA said a major issue was its plan to lift the retirement age to 65 from 55 for air crew and from 60 for ground staff.

In response, it offered all staff the option to retire at 60 in return for increased employee pension fund contributions.

Under the plan, ground staff would lift contribution rates to 10 percent from 5.25 percent, while air crew would pay 11.25 percent for the first five years compared with 6.5 percent now. After five years, rates would be harmonized at 10 percent for everyone.

BA also said it would raise its annual contributions to $513 million from $443.2 million.