Pensions

Directors’ pensions and pension allowances

No Directors were contributing members of the Balfour Beatty Pension Fund during 2015.
Peter Zinkin was the only Director to participate in the Balfour Beatty Pension Fund (the Fund) as a contributing member during 2014. Peter Zinkin participated in the defined contribution (DC) section up to 31 January 2014. He opted out of the DC section of the Fund on 31 January 2014 and became a deferred pensioner of the DC section of the Fund at this date.

The DC section of the Fund is a money purchase scheme with a normal retirement age of 65. The Fund operates a Fund-specific earnings cap for pension purposes. Peter Zinkin’s pensionable earnings were subject to the Fund-specific earnings cap. Peter Zinkin paid an annual contribution equal to 5% of contributory salary for the period to 31 January 2014 via the Group’s SMART Pensions salary sacrifice arrangement as outlined in Note 2 in the Directors’ remuneration table on page 76 of the annual report. A salary supplement was paid to Peter Zinkin in lieu of pension contributions on earnings above the Fund-specific earnings cap for the period to 31 January 2014 and this is included in the Directors’ remuneration table on page 76 of the annual report. A salary supplement was paid to Peter Zinkin in lieu of Fund membership from 1 February 2014 and this is included in the Directors’ remuneration table on page 76 of the annual report.

Duncan Magrath and Peter Zinkin both previously participated in the defined benefit (DB) section of the Fund. The DB section of the Fund provides for a pension at a normal retirement age of 62, although the majority of benefits can be taken unreduced from age 60.

Duncan Magrath opted out of the DB section of the Fund on 5 April 2012 and became a deferred pensioner. In accordance with the Fund rules, his deferred pension was revalued in the year in line with price inflation (measured by the Retail Prices Index). He chose not to participate in the DC section of the Fund. Duncan Magrath was paid a salary supplement in lieu of Fund membership which is included in the Directors’ remuneration table on page 76 of the annual report.

Peter Zinkin opted out of the DB section of the Fund on 31 December 2010 and has been receiving his DB pension from 1 January 2011. He has not accrued any further DB pension in the Fund since 31 December 2010.

The pension table sets out the accrued DB deferred pension based on each executive Director’s service to his date of becoming a deferred pensioner of the Fund. The pension amount for Duncan Magrath is the value of the increase in his DB deferred pension, in excess of price inflation (measured by the Consumer Prices Index), over the year ended 31 December 2015. The pension amount for Peter Zinkin is the amount of the employer contributions paid to the DC section of the Fund excluding any SMART Pensions salary sacrifice amounts. Figures for 2014 are included for comparative purposes. The pension amounts are included in the Directors’ remuneration table on page 76 of the annual report.

Details of the Company's Directors' pensions and pension allowances are set out in the remuneration report 2015. For the full annual report, please use this link.