Concerns are continuing to be raised over BT's pension deficit as it was announced today the company's trustees agreed to pump cash in to fill the gap.
A payment of 525 million a year for at least three years will be ploughed into BT's pension scheme to go towards the 9 billion deficit at the telecoms company, with almost three times the number of past employees receiving payments as those who currently work for BT and pay into the scheme.
The Pensions Regulator has voiced what it called "substantial" concerns about the method the company has chosen, which BT has acknowledged.
"The pensions regulator's initial view is that they have substantial concerns with certain features of the agreement," said a company statement.
"BT and the trustee will continue to work with the pensions regulator to help them complete their detailed review."
Ian Livingston, chief executive of BT said in a statement: "I am pleased that we now have an agreement in place with the Trustee. This is a prudent valuation and a recovery plan which re-affirms BT's commitment to meeting its pension obligations."
Despite the ongoing pension problems, BT's profits actually rose in the last quarter by 39 per cent to 466 million, put down to harsh cost savings, although overall revenue fell by four per cent.
Livingstone added: "These results show that we are making progress. There is still a lot more to be done but our commitment to improved customer service and cost transformation is starting to deliver results and freeing up resources to invest in our future."
