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(Alliance News) - BT Group PLC on Tuesday said it has agreed its triennial pension valuation and deficit recovery plan with its pension scheme, despite the "uncertainty and headwinds" observed since 2020.
The London-based telecommunications provider said its funding deficit at June 30 was GBP3.70 billion, down from GBP7.98 billion at the 2020 funding valuation following GBP4.36 billion of deficit contributions.
The pension scheme had GBP37.22 billion in assets on June 30, against GBP40.92 billion in liabilities. Back in 2020, it had GBP57.32 billion in assets, against GBP65.30 billion in liabilities.
BT said the pension scheme is on track to be fully funded by 2030. Annual contribution amounts will remain unchanged at GBP600 million in each financial year until 2030. A final payment of GBP490 million then will be made before the end of April that year.
BT said it also will continue to make payments of GBP180 million each year under asset-backed funding arrangement, which was agreed at the 2020 valuation.
Further, it has agreed to continue to provide the BT Pension Scheme with legal protections to 2035 as part of a long-term funding framework. It said the scheme will continue to de-risk its investment strategy through to 2034.
BT Group Chief Financial Officer Simon Lowth said: "I am pleased that the BTPS continues to deliver in line with the long-term plan, despite the uncertainty and headwinds observed since 2020. Building on the framework agreed at the 2020 valuation allowed for a swift conclusion of the 2023 valuation.
"The agreement allows us to deliver on our strategic initiatives such as investing in our networks and transforming our business. And it is consistent with our funding priorities of investing in value enhancing opportunities, supporting our pension funds, paying progressive dividends and maintaining a strong balance sheet."
Shares in BT were down 0.3% to 122.60 pence each in London on Tuesday morning.
By Sophie Rose, Alliance News senior reporter
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