Deficits in the BT Pension Scheme (BTPS) have risen to £5.7bn gross of tax at the end of March, and £5.9bn across all the company’s schemes according to BT’s fourth quarter and full year-results.
This compares to the £2.4bn gross of tax shortfall that the company experienced last year at 31 March 2012 and £4.3bn at 31 December 2012.
The results showed that the increase in deficits reflects an exceptionally low real discount rate of 0.87 per cent which includes the impact of QE on the debt markets and a higher inflation assumption.
In addition, the results stated that the higher deficit is despite the strong investment returns and the £325m deficit payment which saw BT Pension scheme assets increase by £3bn to a high of £41.3bn.
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