November 26, 2010 / 8:18 AM / in 9 years

Balfour agrees deal to eliminate pension deficit

A Balfour Beatty worker walks onto a site in London August 10, 2009. REUTERS/Luke MacGregor

LONDON (Reuters) - Infrastructure group Balfour Beatty (BALF.L) said on Friday it has reached an agreement with the trustees of its pension fund to pay off a 375 million pounds deficit over eight years.

Following the triennial funding valuation settlement Balfour Beatty said it would make a one-off upfront payment of 40 million pounds by the end of December and then increase its annual contributions to 48 million pounds, from the 24 million pounds 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 36 million pounds on an annualised basis,” the firm said.

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

Shares in the firm were up 2.3 percent at 277.8 pence at 8:09 a.m., valuing the business at 1.92 billion pounds.

Reporting by Una Galani; Editing by James Davey

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