BT 2015 Annual Report Download - page 180

178 BT Group plc
Annual Report 2015
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The average life expectancy assumptions at the 2014 valuation date, for members 60 years of age, are as follows.
Number of years from 30 June 2014
June
2014
assumptions
June
2011
assumptions
Male in lower pay bracket 26.1 26.3
Male in medium pay bracket 27.5 28.1
Male in high pay bracket 29.0
Female in lower pay bracket 28.9 28.7
Female in high pay bracket 29.2
Average improvement for a member retiring at age 60 in 10 years’ time 1.3 1.2
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Year ended 31 March
2015
£m
2014
£m
Ordinary contributions 168 205
eficit contributions 875 325
7RWDOFRQWULEXWLRQVLQWKH\HDU  530
he roup ade a deficit contribution paent of  in pril 01 and epects to ae further contributions of approiatel 10 to the
 in 011 coprisin ordinar contributions of approiatel 0 and deficitcontributions of 0.
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Under the terms of the Trust Deed, the group is required to have a funding plan, determined at the conclusion of the triennial funding valuation,
which is a leal areeent between  and the rustee and should address the deficit over a aiu period of 0 ears.
n anuar 01 the 01 triennial fundin valuation was finalised areed with the rustee and certified b the chee ctuar. he fundin
deficit at 0 une 01 was .0bn. Under the associated recover plan  ade paents of  in arch 01 and  in pril 01.
 will ae future deficit paents in line with the table below.
Year to 31 March 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
eficit contribution  250 250 688 699 711 724 670 670 670 495 495 495 495 495 289
he ordinar contribution rate to eet the benefits of current eploed ebers increased fro 1. to 1.0 of pensionable salaries includin
employee contributions) from 1 April 2015 through to the next valuation date.
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The 2014 funding agreement with the Trustee included additional features for BT to provide support to the Scheme. These include:
Feature Detail
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distributions
In the event that shareholder distributions exceed an agreed threshold, BT will provide matching payments to the Scheme.
The threshold allows for 15% per year dividend per share growth plus £300m per year of share buybacks on a cumulative
basis.
BT will consult with the Trustee if it considers share buybacks in excess of £300m per year or making a special dividend.
hese provisions appl fro 9 anuar 01 until 1 arch 019 or until the finalisation of the net valuation if earlier.
Material corporate
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n the event that  enerates net cash proceeds reater than 1bn fro disposals net of acuisitions in an 1-onth
period, BT will make additional contributions to the Scheme equal to one third of those net cash proceeds.
BT will consult with the Trustee if:
– it considers making acquisitions with a total cost of more than £1bn in any 12-month period; or
– it considers making disposals of more than £1bn; or
– it considers ain a lass 1 transaction acuisition or disposal or
– it is subect to a taeover oer.
BT will advise the Trustee should there be other material corporate events which may impact BT’s covenant to the Scheme.
hese provisions appl fro 9 anuar 01 until 1 arch 019 or until the finalisation of the net valuation if earlier.
1HJDWLYHSOHGJH A negative pledge that future creditors will not be granted superior security to the Scheme in excess of a £1.5bn threshold,
to cover both British Telecommunications plc and BT Group plc.
his provision applies until the deficit reduces to below .0bn at an subseuent fundin valuation.