The BT Pension Scheme “BTPS” or (“the Scheme”) has published its Annual Report and Accounts for the year to 30 June 2025 which, along with the financial statements, includes the report by the Trustee on funding and investment activities, member services and Scheme governance. The full document can be accessed here

Highlights

• The Scheme remains on course to be fully funded by 2030.
• The last formal valuation undertaken for the Scheme was as at 30 June 2023 and showed a funding deficit of £3.7bn. We review the funding position regularly and our most recent interim funding update shows that the funding deficit has reduced to £3.2bn as at 30 June 2025.
• The Scheme has 253,693 members of which 213,616 are pensioners.
• £2.9bn was paid to them in the year to 30 June 2025.
• Member satisfaction has remained high with a general satisfaction of 87% based on survey responses from 15,000 members.
• Our first external customer service survey, conducted with the Institute of Customer Service (ICS), showed a score of 89.1%. This is one of the highest scores in the country, beating the UK average of 75.8%.

Investment strategy and portfolio composition on 30 June 2025

BTPS’s investment strategy focuses on ensuring that it can fulfil its promises to members, paying their retirement benefits, on time and in full, as they are due.

The Scheme’s investments are spread across a range of asset classes, the majority of which have been chosen to deliver more predictable, reliable income streams, enabling it to fulfil its commitments to members. Its strategy includes hedging measures to insulate it against the impact of changes in interest rates and inflation.

• The Scheme remains a significant investor in the UK, with 66% of its total assets invested in UK gilts, corporate bonds, property, public equities, infrastructure and private equity.
• 54% of the Scheme’s assets were invested in cashflow focused holdings, including sovereign debt, investment grade credit, sub-investment grade credit and cash.
• 27% of the Scheme’s assets were invested in equity and equity-like holdings, including equities, property, absolute return and infrastructure assets.

Jill Mackenzie, Trustee Chair, BTPS said: “Challenging market conditions continued to dominate during the past year. The macro-economic environment became increasingly uncertain and markets remained volatile. We leaned on our expertise and our robust systems of governance to help weather the challenges. We maintained our focus on the Scheme's core objectives: ensuring the funding plan remains on track; that the Scheme’s investment strategy stays resilient; and delivering a high-quality service to members.”