Telecoms firm BT has said it will pay off its £9bn pensions deficit over the next 17 years.
The organisation’s valuation and recovery plan will see BT pay off the deficit at £525m per annum over the first three years, £583m in the fourth year and increasing at 3% each year after that.
Ian Livingston, BT chief executive, said: “I am pleased that we now have an agreement in place with the Trustee. This is a prudent valuation and a recovery plan which reaffirms BT’s commitment to meeting its pension obligations.”
BT will be working with the Pensions Regulator, which is in the process of completing a detailed review of the plan.
A spokesman for the Regulator said: “We are aware of yesterday’s announcement from BT of the current position.
“We look forward to working with BT, the pension trustees and their advisers to enable us to complete our detailed review.”
BT’s main pension scheme was closed to new joiners in 2001 and with 340,000 members is still the largest in the private sector.
For more stories on staff pensions