CWU Welcomes BT Pension Funding
11th February 2010
The Communication Workers Union today (Thursday) responds to BT's third quarter financial results announcement by welcoming the company's continued commitment to funding of the BT Pension Scheme (BTPS).
BT has confirmed it will increase funding from £525m annually to £583m in year four of the current payment plan. BT has committed to increase the funding by 3% year on year thereafter. The third quarter results show revenue down by 4% but profits up by 11% with costs reduced by 13%.
Andy Kerr, CWU deputy general secretary, said:
"Last year was a really tough one for staff in BT. The
negotiated changes to the pension scheme have brought significant
savings to BT while securing the long-term future of the pension
scheme for our members. It's hard to say whether there would
still be a decent pension scheme in the company if those changes
had not been made at that time.
"Today's announcement of an agreement between BT and the Trustee of the pension scheme to clear the deficit is very welcome and show BT's commitment to this key staff benefit. While the projected deficit has increased to an estimated £9billion, this reflects a prudent approach to financial assumptions taken by the Trustee.
"BT is a strong company, but the market is not yet fully recovered so there are still difficult times ahead. While BT's profit has increased, overall revenue is slightly down, again emphasising the importance of reducing costs. We hope the company will continue to recognise the value and importance of its staff and the crucial role they play in the success of the company."
