March 12, 2013 / 11:05 PM / 5 years ago

Air Canada wins extension on cap on special pension payments

OTTAWA, March 12 (Reuters) - Air Canada won an extension on Tuesday of the cap on its special payments to erase its sizeable pension fund deficit, but will have to make higher payments than it originally requested.

Finance Minister Jim Flaherty said in a statement the airline, which had sought to limit its special payments to C$150 million ($145.6 million) a year for 10 years, would have to pay at least that amount annually but would also have to make sure it put in C$1.4 billion over seven years.

Executive compensation will only be allowed to grow at the rate of inflation, special bonuses will be prohibited and limits will be imposed on executive incentive plans.

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