UNION leaders have hailed a ground-breaking pensions deal with Hampshire based defence giant BAE Systems as a blueprint to other employers considering scrapping final salary schemes.

Under the terms of the deal, workers have agreed to take responsibility for 40 per cent of any changes in life expectancy when calculating future liabilities.

The company, which employs more than 3,000 in Hampshire at bases across the county, will inject at least £600 million of cash and assets into its main pension fund, which has a deficit of £2.4 billion.

A ballot conducted by trade unions showed a 74 per cent vote in favour of the deal, while one held by the company returned a majority of 88 per cent.

Ian Waddell, national officer of Amicus said: "The deficit of £2.4 billion was one of the biggest in the UK. This deal demonstrates that by working with unions constructively, pension problems can be solved.

"This is an example to other employers that there is no excuse for walking away from a final salary pension scheme."

Mike Turner, chief executive of BAE Systems, said: "In addressing the pension deficit our aim has been to reach a result which is in the best long term interests of our employees and remains affordable to the Company.

"We are pleased with the outcome of these ballots which represents very good progress in the consultative process. This is a significant endorsement of our proposal by BAE Systems employees."

The deal, which preserves the final salary element of the pension scheme at a time when many companies are closing their schemes, has still to be agreed by BAE's pension fund trustees.