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Sun November 01 2020

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Balfour Beatty tackles pension fund shortfall

26 Nov 10 Balfour Beatty has reached an agreement with the trustees of its pension fund to clear the deficit by 2018.

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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