By Daniel Hunter
BT have announced that they will pay £2 billion into its pension fund to help cover the scheme's deficit.
The announcement is one of the biggest one-off payments into a pension fund by a single company.
The payment is part of a nine year plan to bolster the scheme, which at the last valuation in June had a deficit of £4.1 billion.
Under the recovery plan BT will make a lump sum payment of £2 billion into the scheme before the end of March 2012, from existing cash resources of £1.5 billion supplemented by recent borrowings, followed by nine deficit payments of £325m in March of each year from 2013 to 2021.
“I am pleased that we have been able to reach an agreement with the Trustee," Ian Livingston, BT Chief Executive, said
"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.”
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