BT and Trustee announce agreement on the 2011 Valuation
On 23 March 2012, BT published an announcement relating to an agreement with the Trustee on the approach to the 2011 funding valuation.
The funding deficit as at 30 June 2011 has been provisionally agreed at £4.1bn. BT has agreed to make a lump sum deficit payment of £2.0bn in March 2012, followed by nine annual deficit payments of £325m from March 2013 to March 2021. The final certification of the valuation results is expected in May when the Scheme Actuary completes his procedures. Further detailed information will be provided at that time.
Ian Livingston, BT Chief Executive, said: “I am pleased that we have been able to reach an agreement with the Trustee. This agreement under which the company makes an immediate contribution to the Scheme of almost half of the deficit reflects BT’s financial strength and re-affirms our commitment to the Scheme. BT’s long-term sustainable cash generation has improved significantly since the 2008 valuation and we remain focussed on improving BT’s financial strength, investing in our future and enhancing shareholder returns.”
Paul Spencer CBE, Chairman of the BTPS Trustee, said: “The Trustee is very pleased to have reached agreement with BT on the 2011 valuation. Since the last valuation, BT has had a successful period, enabling it to pay a £2.0bn upfront payment, and eliminate the deficit within ten years. The Trustee looks forward to working with BT to further enhance the security of our members’ benefits.”
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