Shorts say no cause for concern on pensions

A company spokesperson for Shorts has emphasised that those in the company pension fund have no cause for concern.

In an attack on Montreal-based Bombardier following last week's publication of the annual statement for the year ending January 31, former Belfast Short's staff union representatives, claimed that the figures indicated the company had failed to "honour commitments".

However, under new accountancy rules developed by the Accounting Standards Board, known as FRS 17, where companies disclose pension fund assets and liabilities in their annual reports, mean that assets are measured by market climate and that pension funds can show fluctuations depending on the performance of the funds.

The company spokesperson highlighted that Shorts had recommenced contributions to the pension scheme in February of this year – outside the consideration of last week's report. The company confirmed that contributions were made at the rate of 6%.

Former local union officials launched a scathing attack on Shorts' parent company Bombardier, accusing them of "failing to honour commitments" and underfunding workers pension provision to the tune of £160 million.

However, Bombardier issued a statement countering the claims saying that despite the fact that the scheme shows a deficit of £33 million, it "does not affect the benefits to which pension scheme members are entitled".

Shorts added: "Employees, both past and present, have no need to be concerned – the company is committed to retaining its final salary defined benefit scheme."

(GMcG/SP)