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Balfour Beatty Defined Benefit Pension Fund

22 March 2013

Balfour Beatty intend to close their Defined Benefit Scheme and offer to transfer the current members into their inferior Defined Contribution Scheme.

 

This does not affect those Balfour Beatty Rail employees who are members of the Balfour Beatty Rail section of the Railway Pension Scheme.

The company state that they have, over the last three years, paid £230 million towards the deficit, but despite this at the last review the deficit stands at £413 million. Their intention is that your current pension in this scheme will be frozen, although the value of your benefits at retirement will rise in line with inflation. The company is offering to transfer individuals into its alternative Defined Contribution scheme, yet they freely admit: ‘the company spends considerably more on DB pension accrual than it is spending on DC pensions’. The reason they pay more into the Defined Benefit scheme, is because Defined Benefit scheme members generally get a better pension at the end of their working life than those in the Defined Contribution scheme. In short this is a serious attack on the quality of life you are likely to be able to enjoy at retirement.

The TSSA are alarmed at this announcement and as such the TSSA and the other trade unions are seeking urgent talks with Balfour Beatty on this matter and TSSA will respond accordingly to you following the outcome of that meeting. If there is no progress in talks, then TSSA may well need to consider action to pressurise the company.

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