The Balfour Beatty Pension Fund showed an accounting deficit of £432m on 26 June 2010. A level of contributions has been agreed which is designed to eliminate the deficit over eight years from April 2010. It comprises a one-off payment of £40m (c. £29m after tax) to be paid by the end of December and annual deficit contributions of £48m (c. £35m after tax) from 1 April 2010.
The annual deficit contributions will increase every year on 1 April by the increase in the consumer prices index (CPI) up to a maximum of 5%, together with 50% of the percentage increase in the group's dividend in excess of that rate.
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