The industry鈥檚 final salary schemes had a combined deficit of 拢33.4bn in 2011
Former BDP chairman Richard Saxon has warned that the construction sector鈥檚 multibillion-pound pension deficit is set to get worse rather than better, piling financial pressure on employers.
The industry鈥檚 final salary schemes had a combined deficit of 拢33.4bn in 2011, according to the most recent figures available from the Pensions Regulator - with the total thought to have increased further since then.
Pensions consultancy Hymans Robertson has estimated that the total deficit of final salary pension schemes across all sectors of the UK economy has worsened by 拢80bn since the vote for Brexit.
Saxon was in charge of BDP for six years until 2002, when the practice was struggling with a growing pension deficit that hit 拢88m at one point and threatened the firm鈥檚 future.
He told 黑洞社区: 鈥淗owever bad it is now, it鈥檚 going to get worse. People are continuing to live longer and interest rates are falling so returns on investment are weaker.鈥�
He added: 鈥淭he concept of a pension fund is a busted flush, it鈥檚 gone. Firms who have historic commitments can鈥檛 back out of those commitments, but those who don鈥檛 are not starting defined benefit schemes.鈥�
Saxon said BDP - bought by Japanese engineering giant Nippon Koei for 拢102m in March - had got its pension deficit under control.
Source
Since this article was published BDP has asked us to clarify that it severed its connection to the pension scheme a year ago. We are happy to clarify this matter.
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