Executive Directors participate in the Balfour Beatty Pension Fund.
Executive Directors participated in the Balfour Beatty Pension Fund (the Fund) during 2012. The defined benefit (DB) section of the Fund provides for a pension at a normal retirement age of 62 for pension purposes. The defined contribution (DC) section of the Fund is a money purchase scheme with a normal retirement age of 65. Each Director pays an annual contribution equal to 5% of contributory salary except where the Director participates in the Company’s SMART Pensions salary sacrifice arrangement as outlined in Note (i) in the Directors’ remuneration table.
The DB pension for a Director who can complete 20 or more years of pensionable service at normal retirement age is targeted at two-thirds of final pensionable salary, subject to Fund limits which have their origin in the former HMRC limits.
The Fund operates a Fund-specific earnings cap for pension purposes. The pensionable earnings of each Director were subject to the Fund-specific earnings cap and details of the Company’s allowances paid in lieu of pension contributions on earnings above the Fund-specific earnings cap are included in the Directors’ remuneration table. Andrew McNaughton elected to have his pensionable earnings restricted further to a personal earnings cap and details of the Company’s allowance paid in lieu of pension contributions on earnings above his personal earnings cap are included in the Directors’ remuneration table.
Details of the Company's Directors' pensions and pension allowances are set out in the remuneration report 2012.