BT Group's pension deficit jumped to £4 billion ($5.2 billion) from £1 billion over the six months ended Sept. 30, due to a reversion in credit markets.
The telecom firm, which sponsors the £55 billion BT Pension Scheme, London, said in its half-year update Thursday that the change in the deficit, measured on an International Accounting Standards 19 accounting basis, reflected a decrease in the real discount rate and a fall in credit spreads.
The increase in the deficit was partially offset by a £400 million contribution in June and higher than expected asset returns. Details were not available.
Over the year ended Sept. 30, however, the deficit fell 21.6% from £5.1 billion.
The sponsoring employer is in discussions with the trustees about its funding, with a number of options under consideration, including non-cash contributions, the update said.
Spokesmen could not immediately be reached for comment.