The BT Pension Scheme “BTPS” or “the Scheme” has published its Annual Report and Accounts for the year to 30 June 2024 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 funding deficit as at 30 June 2023 was £3.7bn, which is in line with the projected position from 30 June 2020, when the deficit was £8.0bn. The most recent interim funding results calculate the deficit to be £3.8bn as at 30 June 2024.
• The Scheme has 258,588 members of which 212,468 are pensioners.
• £2.8bn was paid to them in the year to 30 June 2024.
• Member satisfaction has seen another year-on-year increase with general satisfaction of 88.7% based on survey responses from 15,000 members.
• During the year, the Scheme completed GMP equalisation, assessing over 200,000 Scheme members, both past and present, to establish which members were due equalisation adjustments. This resulted in making the necessary adjustments for 60,000 eligible members.

Investment strategy and portfolio composition on 30 June 2024

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 assets 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 65% of its total assets invested in UK gilts, corporate bonds, property, public equities, infrastructure and private equity.
• 63% of the Scheme’s assets were invested in cashflow focused holdings, including sovereign debt, investment grade credit, sub-investment grade credit and cash.
• 37% 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: “During the year, 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 continually improving the service we provide to members. I’m pleased with the progress we’ve made.”