BT accelerates pension plan top-up

BT has brought forward a £505 million pension fund top-up from the due date in December 2011 to March 2011, in agreement with the trustee of the BT pension scheme (BTPS).

In addition, the payment will be tax deductible at a corporation tax rate of 28%, rather than the 26% which will apply in the 2011/12 financial year due to the impending tax changes.

According to a BT spokesperson, BT has taken the decision to accelerate the payment as it is economically beneficial to do so and utilises existing cash deposits.

The BTPS has assets under management of around £35 billion and has 330,000 scheme members.

In February 2010 BT and the trustee of the BTPS reached agreement on the triennial actuarial funding valuation as at 31 December 2008 and the associated recovery plan for the BTPS.

Under the recovery plan, BT agreed to make payments of £525 million per annum for the first three years of the 17 year recovery plan.

The first two payments were made in December 2009 and December 2010.†The next payment was due in December 2011.

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