Richard Farr comments on BT’s pension scheme in Investment & Pensions Europe

Richard Farr comments on the options for BT’s pension scheme £7.6bn deficit. The scheme is preparing for its next triennial actuarial valuation and ahead of that it’s considering alternative options to address the shortfall.

Managing Director, Richard Farr commented: “The UK network is BT’s biggest asset, but why would the trustees want security over that if that’s what causes a future problem?

“Instead, the trustees might prefer a guarantee secured by assets not correlated to the UK business, such as subsidiary companies in other countries.

“The key question is what value and flexibility can BT obtain from the negotiations and how will the stock market price the impact on BT’s ability to manage its business effectively,”

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