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| Balfour Beatty reaches agreement with trustees of pension fund Britain's Balfour Beatty announces that it has reached agreement with the trustees of the Balfour Beatty Pension Fund for the triennial actuarial funding valuation and recovery plan. The result of the triennial funding valuation as at 31 March 2010 has been settled and shows a funding deficit of £375 million on an actuarial basis. The last recorded accounting deficit under IAS19 was £432 million as at 26 June 2010, the date of the 2010 half year report. A level of contributions has been agreed which is designed to eliminate the deficit over a period of eight years from 1 April 2010. It comprises a one-off payment of £40 million (c. £29 million after tax) to be paid by 31 December 2010 and annual deficit contributions of £48 million (c. £35 million after tax) with effect from 1 April 2010. In expectation of reaching an agreement, we have been making increased contributions since 1 April 2010 amounting to £36 million on an annualised basis. As per the agreement, the annual deficit contributions will increase on each subsequent 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. write your comments about the article :: © 2010 Construction News :: home page |