Shares in BT sky-rocketed to a four-year high as the group unveiled plans to pump £2bn into its pension fund this month before making a series of payments that will see the group wipe out its £4.1bn pensions deficit over the next decade.
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The early payment will be followed by lower annual contributions of £325m every March for the next nine years, until the final payment in March 2021. Under the previous scheme, BT was to pay £525m per year for 13 years, with the payment linked to inflation, and set to rise to £856m from 2026. The new £325m payment is fixed.
