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| BT pensions hole grows to £3.4bn | BT pensions hole grows to £3.4bn |
| (40 minutes later) | |
| BT has said its pensions fund deficit has grown to £3.4bn ($6.65bn), and will increase its contribution from next year in a bid to boost the scheme. | BT has said its pensions fund deficit has grown to £3.4bn ($6.65bn), and will increase its contribution from next year in a bid to boost the scheme. |
| BT will make payments of £280m annually for a decade, with £500m paid upfront. | BT will make payments of £280m annually for a decade, with £500m paid upfront. |
| The figure announced on Monday comes as the firm has adopted a new accounting method, tipping the fund from a surplus to a significant deficit. | The figure announced on Monday comes as the firm has adopted a new accounting method, tipping the fund from a surplus to a significant deficit. |
| BT chairman Sir Christopher Bland said the moves were "a fair and prudent deal for pensioners and for shareholders". | BT chairman Sir Christopher Bland said the moves were "a fair and prudent deal for pensioners and for shareholders". |
| He also said the projected payments "reconfirmed that BT stands fully behind its pension obligations". | He also said the projected payments "reconfirmed that BT stands fully behind its pension obligations". |
| Under the plan the firm will contribute 13.5% up from 12.2% from 1 January 2007, while employer contributions will stay at 6%. | |
| Longer life expectancy and moderate returns have made it harder for many pensions funds to build up money. | Longer life expectancy and moderate returns have made it harder for many pensions funds to build up money. |
| The BT scheme has 350,000 members in total, which includes 177,000 pensioners and 77,000 members of staff who continue to make contributions to the fund. | The BT scheme has 350,000 members in total, which includes 177,000 pensioners and 77,000 members of staff who continue to make contributions to the fund. |