Annual Report 2009 Royal BAM Group nv

Netherlands
Pension benefits for prior year services are partly accrued within the company pension funds of former legal entities. These
plans are all closed to new participants. Further progress was made in 2009 on transferring and dismantling these company
pension funds. The HBG company pension fund was liquidated in 2009. The liquidation of the Wilma company pension fund
is expected to be completed in 2010.
The Group has initiated a consultation with representatives of the Central Works Council and the Social and Economic
Committee of the Association of BAM Pensioners, in the context of accounting for the Group’s past and future pension policy,
including the rate of pension indexation and investment results. These consultations resulted in a decision to apply restricted
compensation increases with effect from 1 January 2010, insofar as no unconditional commitments have been made.
The basic pension for every employee is covered by multi-employer funds for the accrual of future pension benefits. In
particular, these are the industry pension funds for Construction and for Metal & Technology. Both of the funds operate an
index-linked average pay plan. As these funds are not equipped to provide the required information on the Group’s
proportionate share of pension liabilities and fund investments, the defined benefit plans are accounted for as defined
contribution plans. The Group is obliged to pay the predetermined premium for these plans. The Group may not reclaim any
excess payment and is not obliged to make up any deficit, except by way of the adjustment of future premiums.
At year-end 2008, the coverage rates of these funds were below the statutory minimum in the Netherlands of 105 percent. In
2009, both funds successfully negotiated a recovery plan with the members’ councils and the external supervisor. The
coverage rates will have to be recovered in excess of the statutory minimum within a period of five years by pursuing a policy
of restraint with regard to indexation and by future returns on the investment portfolio. At year-end 2009, the coverage rates
of both funds were already in excess of 100 percent due to the significant recovery of the financial markets.
United Kingdom
In the United Kingdom, the Group makes contributions to defined benefit plans as well as defined contribution plans, which
are executed by multi-employer funds, company pension funds and external insurance companies. Two defined benefit
pension schemes executed by a company pension fund are closed to new participants. In their place, the Group opened a
defined contribution scheme for new employees, which is executed by an outside insurance company. Several defined
benefit schemes are accounted for as defined contribution schemes due to the fact that external parties administering them
are not able to provide the required information. However, these schemes have a limited number of members. The Group is
obliged to pay the predetermined premium for these plans. The Group may not reclaim any excess payment and is not
obliged to make up any deficit, except by way of the adjustment of future premiums.
Supplementary payments into the company pension funds are made annually as a consequence of these funds’ historical
financing deficits. The level of these supplementary payments was established in 2006, in consultation with the members’
councils. The supplementary payment in 2009 amounts to approximately €12 million (2008: €15 million).
These company pension funds were subjected to further tri-annual integral valuations in 2009. The negative developments in
the financial markets in 2008 again resulted in underfunding. The Group is currently negotiating a new recovery plan with the
members’ councils and the external supervisor. Supplementary payments are expected to be made in the coming years.
Belgium
In Belgium, the Group makes contributions to a relatively small defined benefit scheme which is executed by an external
insurance company. The Group has also made arrangements for employees to participate in a defined contribution scheme.
Germany
In Germany, the Group operates several defined benefit schemes. These schemes are financed by the employer and partly
executed by a company pension fund. The Group closed several schemes to new participants and intends to close the
remaining schemes as well. Since 2006, the Group has been making contributions to a defined contribution scheme, into
which employees have the opportunity to contribute on an individual basis.
Ireland
In Ireland, the Group has a defined benefit scheme which is executed by a company pension fund. The multi-employer
pension scheme was fully converted from a defined benefit scheme into a defined contribution scheme with effect from
1 January 2006.
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2009