UK - Mobile phone operator O2 has agreed an increase in contributions with members of its final salary pension scheme in an effort to stave off closure.

After consulting with the Communication Workers Union (CWU) and a ballot of employees, members of the defined contribution scheme will now be able to decide between three possible ways of preserving the current benefit arrangements.

One suggestion is to increase contributions from 6% to 10%, while another would see contributions rise to 7.5% and all future benefits calculated a reduced accrual rate.

Sally Bridge, the union's assistant secretary praised the strong turnout for the ballot saying it showed that contrary to popular belief, workers were still interested in pensions.

"This strong endorsement demonstrates that our members in O2 value the significance of what we've tried to do for them on this difficult but vitally important employment benefit," she added.

Meanwhile, airport operator BAA has seen its DB scheme deficit fall by over £200m following the sale of Gatwick airport.

According to its annual report for 2010, the scheme had a deficit of £255m at the end of 2009, which fell to £43m within a year after the sale of one of the operator's three London Airports.

BAA noted in its report: "The reduction in the scheme deficit is due principally to the benefit of the £104.7 million commutation payment into the scheme that arose due to the Gatwick sale and returns on the scheme assets increasing to £213 million compared to £74 million in 2009."

However, despite the smaller deficit, employment costs rose as the company was forced to revise actuarial assumptions for the scheme, necessitating a further £10.8m payment.

Finally, the Bedfordshire Pension Fund has named Hymans Robertson as actuarial consultants.

The announcement means £1.1bn local government pension scheme will continue working with Hymans, who have conduced both the 2007 and 2004 triennial valuations.

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