Contractor agrees deal with trustees of pension fund
Balfour Beatty has agreed a deal with the trustees of its pension fund to delay an 拢85m deficit payment that was due this year.
The payment will now be spread over eight years, starting with a 拢4m cash payment in 2016 and increasing annually thereafter.
Under the agreement the pension fund will now participate in a Scottish Limited Partnership vehicle, into the which the company will transfer PFI assets worth 拢85m.
On 22 January the firm also cancelled a 拢200m planned share buyback.
Leo Quinn (pictured), Balfour Beatty chief executive, said: 鈥淲e are pleased that the pension fund Trustee has worked with us to re-profile the pension payments, in light of the cancelled share buy-back.
鈥淭his gives a clear plan on how the pension deficit will be reduced over time, whilst maintaining balance sheet flexibility as we drive the required organisational change and performance improvement, as set out in the Build to Last programme we announced last week.鈥�
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