PENSION DEFICIT CUT TO BELOW £8BN

BT HAS slashed its pension deficit to just less than £8 billion, a result for 300,000 scheme members.

Members in the “defined benefit” scheme are owed valuable pension promises, fulfilling them has been a long-term headache for the company.

Some straightforward cash payments from BT and other financial manoeuvres — an asset-backed funding deal — see the deficit down to £7.98 billion from £11.3 billion in 2017.

BT says the deal gives certainty to shareholders on future liabilities and to pensioners expecting income.

The BT fund has assets of £57 billion. Newer staff are in a less generous “defined contribution” scheme.