Babcock International to pay £93m into DB schemes

Babcock International will pay total cash contributions of £93 million into its defined benefit (DB) pension schemes in 2012/13.

In its full year results for the year ended 31 March 2012, published on 15 May, the engineering firm said that £56 million of the total is in respect of the cost of future service accrual, £30 million was paid prior to 31 March 2012, £8 million is in respect of three longevity swaps transacted during 2009/10 to mitigate the financial impact of increasing longevity, and £36 million will be funded from other group contracts.

The total pension deficit at 31 March 2012 was £265.9 million, compared to £225.1 million in 2011.

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