Telecoms giant BT has revealed that its pension fund deficit has grown by £3bn during the first quarter of the year, according to a report in The Times.
BT said that the deficit is now £5.8bn, compared to £2.9bn in March, despite the fact that the value of shares and other investments held by the fund has increased.
The slump resulted from BT having to adjust for a higher inflation rate of 3.25 per cent (instead of 2.9 per cent) and a lower discount rate, which is the figure used to calculate the scheme’s liabilities, the paper said.
The deficit emerged as BT announced that profits in the three months to June had fallen by 45% to £272m.
In May, the company announced 15,000 job cuts after two profit warnings at BT Global Services, which provides telephone and IT services to large organisations.
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