BT pension deficit slashed by £3bn by new inflation measure

first_imgFriday 5 November 2010 12:20 am Show Comments ▼ whatsapp BT pension deficit slashed by £3bn by new inflation measure Tags: NULL BT’S mammoth pension deficit will fall by £2.9bn thanks to a change that will link pension payments to the Consumer Prices Index inflation meaure instead of the Retail Prices Index. The fall in deficit, which stood at £9bn in 2009, will immediately have an impact on interest payments made by the telecoms giant.It will also have an affect on BT’s contributions to the scheme when the level of deficit is recalculated at its triennial review in 2011. BT has already suggested the deficit has dropped to around £6.6bn since 2009. The reduced liabilities will mean BT could end up either paying less than its current £525m a year contribution, or paying off the sum sooner than planned.Future pension increases for 266,000 former workers will now be around 0.75 per cent lower than before, translating to a cut of almost a fifth in payments.BT has stressed it has no say in the implementation of the new inflation measure, which was applied to all public sector pension schemes by the coalition in July. The City welcomed the move, with shares in the firm jumping almost 3.3 per cent to 161.6p. whatsapp Share KCS-content Read This NextRicky Schroder Calls Foo Fighters’ Dave Grohl ‘Ignorant Punk’ forThe WrapCNN’s Brian Stelter Draws Criticism for Asking Jen Psaki: ‘What Does theThe WrapDid Donald Trump Wear His Pants Backwards? Kriss Kross Memes Have AlreadyThe WrapHarvey Weinstein to Be Extradited to California to Face Sexual AssaultThe WrapNewsmax Rejected Matt Gaetz When Congressman ‘Reached Out’ for a JobThe WrapPink Floyd’s Roger Waters Denies Zuckerberg’s Request to Use Song in Ad:The Wrap’The View’: Meghan McCain Calls VP Kamala Harris a ‘Moron’ for BorderThe Wrap’Sex and the City’ Sequel Series at HBO Max Adds 4 More ReturningThe Wrap2 HFPA Members Resign Citing a Culture of ‘Corruption and Verbal Abuse’The Wrap last_img read more