We use cookies to support features like login and allow trusted media partners to analyse aggregated site usage.
To dismiss this message and allow cookies to be used, please click "Continue".

Continue

News/Analysis

Twitter board

Follow us
  • RT @PensionsSion: Portfolio Prepared? Join us and @portfolio_inst on 4th July 2018 to hear presentations on latest investment trends, helpi…yesterday
  • RT @csgmoore: My latest feature for @portfolio_inst where I use the USS crisis to explain everything you wanted to know about valuing defin…yesterday
  • RT @JohnRalfe1: @csgmoore @portfolio_inst Very good piece #USSyesterday
  • RT @eVestment: How is interest in #realestate impacting the #UK pension business? @portfolio_inst has a look https://t.co/1w82Kz4o6Vyesterday
  • Karen Shackleton @MJHudsonCorp #SRI implementation as part of risk management is mainstream now @portfolio_inst #SRI Roundtableyesterday
  • John Olsen: "A key strength of the British asset management industry is now asset managers get together and work on… https://t.co/ADtXBGga0qyesterday
  • Discussing investment challenges at the @portfolio_inst #SRI Roundtable with @esmeefairbairn @AonHewitt… https://t.co/r1iYOrYeloyesterday
  • Lively debates at the @portfolio_inst #SRI Roundtable https://t.co/9j0ajME8Ztyesterday
  • John Olsen, fund manager: "Industry wide frameworks on #SRI can kill a lot of constructive dialogue" @MandGcareeers @mandgprofyesterday
  • Tim Manuel @AonHewitt: Challenge with passive #SRI investing - your outcomes could be completely different dependin… https://t.co/U1OjPYqd2syesterday
  • Wim van Hyfte: Short term benchmarking is a huge challenge to #SRI investing which should be more long-term oriented @candriamyesterday
  • Wim van Hyfte, global head of responsible investments and research @candriam : I'm not sure we need a universal def… https://t.co/qvYRbFglf3yesterday
  • Tim Manuel, UK head of responsible investment @AonHewitt: "The best way to progress the discussion on ESG is to foc… https://t.co/hCSwTi55Qqyesterday
  • James Brooke Turner, investment director, @NuffieldFound :"It is no longer acceptable to make money at any price"… https://t.co/vUKTy2ENcYyesterday
  • Beatrice Hollond, trustee at @esmeefairbairn Foundation says overall, pension funds should be responsible investor… https://t.co/4UZcRdjxF5yesterday
  • Our Responsible Investment round table is kicking off, featuring @esmeefairbairn @AonHewitt @MandGCareers… https://t.co/81pUdO6DBYyesterday
  • Beatrice Hollond: "When we started the #ESG focus was very much on smaller funds, we now implement it as part of ou… https://t.co/YyNm9OUoFsyesterday
  • Karen Shackleton @MJHudsonCorp "I can easily see pension funds applying ESG in all equity and bonds investments, th… https://t.co/Fiv4xmbrPKyesterday
  • Tim Manuel @AonHewitt "the benefit of divestment is that is very easy to implement, #ESG engagement requires a much more nuanced approach"yesterday
  • Beatrice Hollond @esmeefairbairn #ESG Engagement with boards can have a deeper impact over time "yesterday

Pensions

BT bulks up pension with £13.1bn cash boost

BT bulks up pension with £13.1bn cash boost

Mona Dohle
Friday 11th May 2018

British Telecom' s (BT) triennial funding valuation revealed a £11.3bn funding deficit for its pension fund, which the firm intends to cover within the next 13 years.

Over the past three years, the BT pension fund deficit has increased from £7bn to £11.3bn, according to the schemes trustees, the fall in long term interest rates was a key reason for the rising deficit.

BT announced a three step plan to fund the deficit, starting from initial payments of £2.1bn over the next two years, of which £850m was paid by March this year.

The firm also aims to raise and additional £2bn from the proceeds of a bond issuance, with maturities ranging from 2033 to 2042.

For the 10 years from 1 April 2020 to 31 March 2030, BT will make annual payments of around £900m by 31 March each year, bringing the total cash injection to £13.1bn.

Paul Spencer, chairman of the BT Pension Scheme Trustee comments on the agreement: “The valuation reflects the economic and market conditions at the valuation date and secures an updated and improved funding plan for the Scheme supported by a range of protections. The substantial contributions agreed with BT in the near term, together with ongoing developments in the Scheme’s investment strategy, are expected to lead to a material improvement in the stability of the Scheme’s funding position.”

In addition to injecting additional cash into its pension scheme, BT also announced that it will take steps aimed at lowering the investment risk of its portfolio. About 15% of its growth assets such as equities and property have already been converted into -risk investments, such as bonds, the group confirmed.

As of June 2017, BT managed £49,344bn in assets on behalf of 297,454 members, it is the largest single-employer pension scheme in the UK.

0

Leave your comment

View our comments policy

Please login or register with us to leave a comment. It's completely free!