Ofcom checks out BT’s £9bn pension black hole

Ofcom has launched an enquiry into British Telecom (BT)’s £9m pension deficit.

The BT pension scheme is one of the biggest in the UK in terms of both the number of members and the value of its investments.

Nearly three times as many pensioners receive benefits as active BT employees contribute to the scheme, which had liabilities of more than £40bn and a pre-tax deficit of £9.4bn on 30 September 2009.

Ofcom said that it would review BT’s ability to make cash payments into its pensions pot and pension “holidays” for staff, where employees reduce their payments into schemes.

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The deficit could result in the company’s customers and rivals paying higher charges, according to the Times.

BT said that it welcomed the review.