‘Green’ Murphy pension deficit grows by £2m

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

When the scheme was 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 said: “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 highest-paid director, the company chairman, received a salary of £750,000, similar to his pay in the previous year.

[Contract Journal, 15 November 2006, p 10]