Rolls-Royce offers money for pensions deficit if workers agree to close plans to new members

Rolls-Royce offers money for pensions deficit if workers agree to close plans to new members

Jet engine maker Rolls-Royce Group PLC on Thursday pledged 500 million pounds (US$875 million; Ђ730 million) toward tackling its pensions deficit if workers agree to close its final salary plans to new members.

Rolls-Royce said it will also increase the level of contributions as part of attempts to reduce a deficit that stood at 1.28 billion pounds (US$2.2 billion; Ђ1.8 billion) at the end of last year.

The company said that it began consultation on the proposals with representatives of its three British pensions funds on Wednesday. Two of the three schemes are still open to new members.

Shares in Rolls-Royce closed 2.6 percent higher at 480 pence (Ђ6.93, US$8.38) on the London Stock Exchange, reports AP.

O.Ch.