Where did BT get the £2bn each year to magickally decrease the pension gap?
A couple of posts have asked questions along these lines. Here's how the Telegraph reported it earlier in 2018:
(from https://www.telegraph.co.uk/business/2018/05/10/bt-axe-13000-jobs-quit-london-hq-cost-cutting-drive/ - shouldn't that say drivel?)
"BT will also borrow £2bn by issuing bonds and pay it straight into the pension deficit. The bonds will be bought by the pension scheme itself."
Run that one by me again?
BTplc owes BTpensionfund loadsamoney (£billions of contractually binding deferred wages),
Despite this longstanding black (red?) hole showing little sign of a realistic recovery plan, the BTpensionfund management hand BTplc £2bn of allegedly real (employees deferred wages) money, in exchange for promises of 'jam tomorrow'.
The effect of this transaction, to my simple way of thinking, seems to be the following:
(a) increase the pension deficit by £2BN (because £2BN has left the pension fund bank account)
(b) faciitate the printing some magical monopoly money in the form of BTplc bonds which anyone with a clue (apparently except the pension fund management?) knows are likely to be useless in due course.
(c) the BTpensionfund management say "yes, your £2B of lovely bonds look like an excellent deal in return for £2B of real money. Thank you so much. Your lovely bonds aren't vaporware at all."
(d) profit - but where, and for who?
When BTplc inevitably goes bust, which is the only foreseeable result of BT's years of board level incompetence, where will the missing £2BN pension fund money be? It won't be heading for the ex-employees retirement accounts, you can be sure of that.