Balfour agrees deal to eliminate pension deficit

INFRASTRUCTURE group Balfour Beatty said it had reached an agreement with the trustees of its pension fund to pay off a £375m deficit over eight years.

Following the triennial funding valuation settlement, Balfour Beatty said it would make a one-off upfront payment of 40m by the end of December and then increase its annual contributions to 48m, from the 24m that was agreed at the last review in 2007.

"In expectation of reaching an agreement we have we have been making increased contributions since April 1 2010 amounting to 36m on an annualised basis," the firm said.

Balfour Beatty had an average net cash position of 436m at the end of the first half of the year, according to a company spokeswoman.