BAE Systems has revealed its pensions deficit increased by £1.2 billion ($2.29 billion) last year to more than £4 billion. Announcing the deficit as part of its annual results, BAE said the increase was due to employees being expected to live longer after retirement and a reduction in the UK's interest rate, which influences pensions. Employees are being consulted on ways to combat the shortfall and may be asked to increase their contributions to the pension fund, which were last increased two years ago.

Source: Flight International