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					Walkden House
10 Melton Street
London NW1 2EJ

Tel: 020-7387 2101
Fax: 020-7383 0656
Email: enquiries@tssa.org.uk


                                                                                       Circular No: 256
                                                                                            Ref: 3.7/RN
                                                                                      Date: 4 July 2008


Dear Colleagues

                           BALFOUR BEATTY PENSION FUND

TSSA has been advised by Balfour Beatty of changes to the operation of
the Balfour Beatty Pension Fund. The Company advises that the
Scheme Actuary has estimated a £131 million deficit in the fund and, as
a result, the Company are going to make additional contributions of
£16.6 million for the next 4.5 years to reduce the deficit, which TSSA
support, but also to change the basis on which pay increases are
awarded.

The Company advises that only pay increases up to a level determined
by the Balfour Beatty Board will count towards scheme benefits. The
Company say that this will ordinarily be in line with inflation up to a
maximum of 5%, but there is clearly no obligation on the Company
actually to allow pay increases of up to RPI to count for future pension in
the Pension Fund. The Company will then allow individuals to pay the
rest of their pay increases into a Defined Contribution Scheme, which will
have much lower benefits.

At first glance this change seems not too unattractive but the cap also
applies when a scheme member is promoted. In other words, an
individual’s salary at the time of the change to the scheme will be fixed
for membership of the Balfour Beatty Pension Fund (subject to salary
increases allowed for future pension) for the rest of an employees
service with the company, no matter how many promotions they achieve.

Members will either have more and more of their pension directed to a
less beneficial Defined Contribution Scheme as they are promoted, or if
they are not promoted, the small amounts of salary paid into the Defined
Contribution Scheme will have built up very small amounts of money and
will not attract a meaningful addition to a pension.

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I would emphasise that the changes affect the Company Balfour Beatty
Pension Fund only, not the Railways Pension Scheme administered by
RMPI or any other pension scheme administered by Balfour Beatty.

I have already told the Company that TSSA cannot support their
proposal. In order to gauge how many TSSA members are effected by
the proposal, and how members wish to react, I would ask all members
to complete the attached referendum survey form and return it to me by
Friday 18th July.



Yours sincerely




Iain Anderson
Senior Regional Organiser

All Balfour Beatty members direct
All Balfour Beatty Branches
Executive Committee SOGS




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Circular No 256

                                                     TSSA

                                           BALFOUR BEATTY

                                           PENSIONS SURVEY

Which pension provision do you have?
( Please circle appropriate one)
                                   Railway Pension Scheme

                                                       Balfour Beatty Pension Fund

                                                       Balfour Beatty Defined Contribution

                                                       None

                                                       Other (please specify what)

                                                       ___________________________________




                                                                                    Yes

Would you be prepared to consider
industrial action to persuade the
Company to change their proposals?
(Please mark your view)                                                              No




PLEASE RETURN TO TSSA WALKDEN HOUSE 10 MELTON STREET LONDON
NW1 2EJ BY FIRST POST ON FRIDAY JULY 17TH 2008




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