HBG UK pours £27m into pension scheme

HBG UK poured a total of £27m into its under-funded pension scheme last year. The figure was even higher than the previous year’s figure of £15m.

In addition to what HBG called an ordinary contribution of £7m in 2007 there was also a “special contribution” of £20m.

In 2006, the previous year, it was also decided that the ordinary contribution of £7m was short of the mark. That time a further £8m special contribution was seen as being needed.

HBG has also declared that there will be two further special contributions to rectify its pension scheme’s shortfall:

• £5m in 2008
• £6m in 2009

Under-funded pension schemes in the UK construction industry became an issue when Dutch group Ballast Nedam decided to shut down its UK operation. It had run into the red and unsecured creditors were owed a total of £150m.

The largest element within this tally was a £90m shortfall in the Ballast UK’s pension scheme.