BT Group is expected tell staff this month that its defined benefit pension scheme will be closing to future accruals due to a massive deficit in its retirement scheme, according to reports.
Sky News reported the telecoms giant will set out a plan for cutting its pension obligations tomorrow with its half-year results.
The company was said to be planning to close the BT Pension Scheme to future accruals and move the remaining years of members’ pensions to its defined contribution scheme. BT is also expected to outline a new formula for paying its dividend, which has come under threat after tough months of trade.
In a note to employees seen by Sky News, new BT chairman Jan du Plessis said on his first day in the role that “the last year has been a difficult one for BT” but that the company “cannot afford” to dwell on it. He also wrote that he looked forward to supporting chief executive Gavin Patterson.
BT did not immediately respond to a request for comment.