Balfour dismisses pension fund fears

Balfour Beatty  has today (Wednesday) played down concerns that its pension fund may be suffering because of the fall in worldwide equity values.

"We do not have a pensions issue," Balfour's chief executive Mike Welton confirmed. "Our fund is very conservatively managed and we don't envisage any issues. Nor do we think it is appropriate to speculate about the outcome."

Balfour, which has around 60% of its pension fund in bonds and the balance in equities, values its fund every year.

The last valuation -- at the end of December 2001 -- showed a surplus of assets over liabilities. Welton said the group would not be undertaking any interim valuation of the fund.

Investors and analysts have recently been concerned that the fall in stock markets and the adoption of FRS17 -- which takes a 'snapshot' view of assets and liabilties of the pension fund -- could lead to higher costs as companies make up the shortfall.