BT Group PLC, London, will be waiting “a number of months” for the U.K.'s Pensions Regulator to review its pension recovery plan, CEO Ian Livingston said Thursday.
The Pensions Regulator said in February it had “substantial concerns” on an agreement with the trustee of the BT pension program. The company had a pension deficit of £7.9 billion ($11.6 billion) at the end of March, compared with about £8.8 billion at the end of December.
Trustees at the BT Pension Scheme agreed in February to make annual contributions of at least £525 million for the next 17 years to help fill a £9 billion funding gap in its defined benefit pension plan.
In December 2012, BT will contribute £583 million; then contributions will increase 3% each year through December 2026.
In a news release Feb. 11, BT acknowledged “the Pensions Regulator's initial view is that they have substantial concerns with certain features of the agreement,” but said officials at BT and BT Pension Scheme would work with the regulator as it reviews the deal.
Reporter Drew Carter contributed to this story.