BT reduces pension deficit to £3.7bn and will keep contributions flat
BT has said its pension funding deficit, which was nearly £8bn in 2020, shrunk to £3.7bn in June this year, and its annual contribution amounts will stay the same.
The British telecoms group will maintain annual contributions at £600m until March 2030, with a final payment of £490m before April 2030.
Additionally, BT will continue making annual payments of £180m under the agreement made in 2020.
Otto Thoresen, BT Pension Scheme (BTPS) chairman, said: “The BTPS continues to be on track to fulfil its commitments to members, despite high levels of macroeconomic volatility and uncertainty.
BTPS aims to reduce investment risks until 2034, with a target of being fully funded by 2030.
“Our deficit is reducing, funding levels have improved, and we remain on course to be fully funded by 2030,” said Thoresen.
BT chief financial officer, Simon Lowth, said: “The agreement allows us to deliver on our strategic initiatives such as investing in our networks and transforming our business.
“And it is consistent with our funding priorities of investing in value-enhancing opportunities, supporting our pension funds, paying progressive dividends and maintaining a strong balance sheet.”
More to follow