BT Pension Scheme Valuation 2014
3 February 2015
BT and the Trustee of the BT Pension Scheme (BTPS) have announced today that they have reached agreement on the 2014 triennial funding valuation.
The key points are as follows:
- The valuation shows BTPS assets of £40.2bn and liabilities of £47.2bn.
- The funding deficit as at 30 June 2014 is £7.0bn and means the BTPS is 85.2% funded. This compares with a £3.9bn deficit and a funding level of 90.4% in the previous valuation. The increase in the deficit reflects the low interest rates at the valuation date.
- A 16 year recovery plan has been agreed. Over the next three years BT will pay a total of £2.0bn. BT will pay £1.5bn by the end of April 2015. This will be followed by £250m in each of the next two years. Between 2018 and 2024, BT will make payments in line with the 2011 valuation agreement and then five annual payments of £495m and a final payment of £289m in 2030.
- The agreement continues with a range of other protections for the Trustee that have been previously agreed covering issues such as: payments to shareholders; share buy backs; disposals; and acquisitions.
- The next valuation will take place no later than 30th June 2017.
The CWU welcomes the agreement between BT and the Trustee, which clearly demonstrates BT's continued commitment to the BTPS which has over 300,000 members.