BT Pension Fund

BT is the UK’s premier telecommunications company.

The BT pension fund is huge pension fund that looks after the assets and pays the pensions to BT’s retired workforce. The BT Pension Scheme (BTPS) is the UK’s largest corporate defined benefit pension scheme with assets of about £58 billion ($80 billion), paying more than £2 billion in pension payments per year. The scheme closed to new members in 2001, but remains responsible for securing the long-term financial wellbeing of approximately 320,000 current and future pensioners

The Scheme’s net assets were invested 37.5% in growth assets and 62.5% in liability hedging assets as at 30 June 2020

Total benefits paid were £2.5bn, in the year to 30 June 2020. That is about £208.33333 Million a month paid out in pensions to BT’s amazing retired workforce.

Distribution of investments:

Equities 18.3% of the fund
Government bonds and cash 33.2% of the fund
Secure income 1.4% of the fund
Investment grade credit 27.9% of the fund
Other growth assets 12.4% of the fund
Property 6.8% of the fund

Total Assets £57,493 Million

With such a large portfolio, it makes substatial investment income

Dividends from equities £202 million
Income from bonds £562 million
Net rental income from properties £61 million
Income from pooled investment vehicles £55 million
Derivatives £125 million
Longevity insurance contract £-(30) million
Interest on deposits and short-term investments £23 million

Total of £998 Million income.

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