Reuters breaks news on BT’s pension shortfall

Reuters was first on May 13 that telecoms group BT was facing a larger pensions deficit than expected and could be forced to double its contributions to its scheme — - a day ahead of BT’s full-year results. The following day, BT said it would almost double its pension contributions to meet its growing pension deficit. The company also said it would cut its dividend to meet the increased pension payments. BT`s announcement followed an analysis on April 20th that predicted that UK companies, including news that BT would be forced to cut dividends as pension deficits rose.