J Murphy and Sons pension fund deficit climbs to £11.4m

J Murphy and Sons, better known in the construction industry as “the green Murphy”, suffered a £2m increase in the deficit in its pension scheme last year. The shortfall now stands at more than £11m.

When the scheme is assessed to the accounting standard FRS 17, contributions of £3.8m last year were insufficient to stem the mounting deficit.

In the report accompanying Murphy’s latest annual financial results (12 months to 31 December 2005), the group says: “The pension fund deficit is expected to be eliminated over the average remaining working lives of employees by way of combined employer and employee contributions at a level of 19.7% of pensionable salaries and then, for seven years from 2008, an additional £965,000 per annum”.

The group has 2,474 employees.

The highest-paid director, the company chairman, received a salary of £750,000, similar to his pay in the previous year.