Telecoms giant BT is considering the future of its defined benefit pension scheme, which is one of the largest in the UK.
One possibility is that it might close it to future accrual. When this was put to a BT spokesman he did not deny that this option was on the table.
In a statement, they said: “We are starting discussions with the trustee of the BT Pension Scheme about the triennial valuation.
“We don’t expect this process to be completed until the first half of 2018 at the very earliest.”
BT's annual report and accounts stated : "The BT Pension Scheme represents over 97 per cent of our pension obligations.
"The scheme faces similar risks to other UK DB schemes: things like future low investment returns, high inflation, longer life expectancy and regulatory changes may all mean the scheme becomes more of a financial burden."
The next scheme valuation is due start in June 2017.
The report added: "If there’s an increase in the pension deficit at the next valuation date, we may have to increase deficit payments into the Scheme. Higher deficit payments could mean less money available to invest, pay out as dividends or repay debt as it matures, which could in turn affect our share price and credit rating.
"We’re considering a number of options for funding the deficit after the next valuation, as at 30 June 2017. These options include considering whether there are alternative approaches to only making cash payments, including arrangements that would give the scheme a prior claim over certain BT assets."
