"LONDON (Alliance News) - BT Group PLC on Friday said it is "disappointed" with the UK High Court's decision not to allow it to change the index used to calculate the company's pension increases.
The FTSE 100-listed telecoms company said it sought a court decision in December to see if it could switch from the retail prices index to an unspecified other index.
The change would relate to members of section C of its pension scheme. Of the 296,000 total members of its pension scheme, 83,000 are members of section C.
BT said there remains the possibility of an appeal, as it evaluates its options. The index used for sections A and B remains unchanged from the consumer price index.
The retail and consumer price index's measure inflation, the changing costs of 'baskets' of products. They use different items and formulae, and the CPI is usually lower. The CPI as of December was 2.7%, while the RPI was 4.1%.
Regarding other pension issues, BT said the triennial valuation is still ongoing and it expects to complete the valuation in the first half of the year. "
Maybe they went for a run around the park,cleared their heads like some of the posters below.Then like me they thought duck it !I am a buyer,BT.A has been beaten up enough and has a progressive div.Lots of our teams still left in the champs league,so much interest there which should attract a few more customers on these dark winter nights.
My money is on a Man U v Man city final...........
'The only thing putting me off is the fear of a wider market pull back in Q1. '
It's interesting that 2 years of consistent decline in the SP doesn't seem to be a discouraging factor for you! Sure - there was a breakout of sorts earlier in the month at around 264 but it failed to get through the next stage of resistance at 280 and would really need to be progressing upwards from 300 to convincingly break the downward pattern.
You posed the question on ex-div day when the sp opened 'down' by the customary amount and then proceeded to nearly double that drop - this might well indicate where it is headed next. Like Sticky says, running could be good for you.
macbonzo - when you "Ask yourself where BT performed in 2017 relative to all the FTSE 100 constituents. " , how do you do this? I mean, you are looking for top quartile or decile but how are you measuring this?
Paul, the last two posts are both interesting and valid ways of looking at it. My approach is different. Ask yourself where BT performed in 2017 relative to all the FTSE 100 constituents. For me to go long, I would need to see a top quartile (ideally top decile) ranking. Another way of looking at it is: Imagine you were running a Long/Short fund, would you not want to be short BT based on it's pa? Too many people will come up with any efficacious argument to buy something because it is 'cheap'
To answer your question regarding the longevity of this bull market. Yes it can go on.
Whatever you decide to do use a stop loss. For most people loss aversion means they wait until it is far too late to admit they are wrong .
What I do is always try and talk myself out of a share going out of my way to identify and then give me all the reasons not to invest. Once I have those if they are not good enough to deter me then I buy if that was my original intention.
The past is not a true reflection on the future but I always look at this share and think are we in a better place than when I first bought.
When we dropped 20% on the financial irregularities from a part of the business that resulted in 1% of turnover or profit (I can't remember) that was my trigger to look closely at this share.
I have bought and sold and have been back in about 1.5 months. I see the future being a bit brighter and continue to hold.
If only we can keep them damn regulators from interfering
I would advise you to go for a 2 mile run around your local park. Then sit down in front of your PC and click on the BT chart button of this site. Look at the chart and predict where the BT share price will be in 12 months time, write this down on a piece of paper and keep safely for reference in 12 months time.
Next list all the positive and negative attibutes of BT asa company. Total the negative and the positives , if you have more negatives than positives you need to look at investing elseware, if you have more positives than negatives you need to go for another run around your park.
Booked another few points here. Reasons: despite divi next week, with UKX at new record highs & BT recently seeing resistance not far above, I've seen these suckers go down sharply after ex-date's by far more than any divi value.
In cases like these, rightly or not, always prefer booking my gains with leverage. GLA!
Well for some of us - those with a core holding who bought more at around 245 to 'average down' - it's potentially been a good time to take a 12% profit and reload with cash in case of a retrace from around 280. No complaints whichever way it goes from here.
For the time being the tie up with SKY should mean a containment on the ever rising sport content fees and reduce the uncertainty on future content availability. Also with BT signing working agreements with the likes of Amazon and Netflix the fear of the FANGs intervention might not materialise.
UBS, which upgraded its recommendation on BT shares to 'buy' from 'neutral' and raised it price target to 330p from 310p, said the prime reason was it forecasts a lower pension deficit of £6.5bn gross versus the consensus of £11-12bn.
ok i find the discussion on pension odd... of course interest rates will help and they will go up one day as they cannot go any lower... but also it is not going to bankrupt BT as worts case they stop paying divi for a couple of years and the funding gap is all closed.
so where is the tragedy? it looks to me that pensions funds liability is a spectre used by companies to reduce employee benefits... with some excuse... b effectively this is part of the pay package one gets so companies cannot say they shy away from these in favour of dividends...
i hold bt but As a shareholder I am not happy if companies do not put paying their employees of former employer what is due as a priority...
now of course if one wants to go to defined contributions why not but see a steady march towards modern slavery is in the interest of no one. at least it would be good pensioners can still afford broadband and a mobile phone!
Indeed Akis1999 that hit to the balance sheet from the scheme closing is still to come. I think that is why management are happy to do it in stages with changes to ongoing benefits and part defined contribution and part defined benefit but we shall see. There are a number of changes employees and employers could negotiate.
We were discussing the narrow field of income and expenditure. Obviously there are a wide number of factors that will impact the fund, just one of them will be gilt yields. Mortality assumptions, future assumptions for growth of the fund to name but a few, but the elephant in the room is open or closed scheme as when you close a scheme the liabilities and therefore the shortfall rises massively.
While the Exec continue to pay themselves big bonuses/pensions for being asleep at the wheel we can't expect BT staff to accept reduced pensions. No doubt the Execs are already looking at how to recoup last year's Italian issue bonus cuts rather than service improvement.
Unfortunately a common problem across many company execs, they won't accept cuts themselves, staff accepting cuts are exec bonus gains, a change of culture is needed.
I'm impressed with the chancellor's approach/drive but he needs help and focus is elsewhere.
BT pension fund recently published their June 2017 accounts.
In summary assets £49B, pensions being paid £2B (similar to last year and the year before) , income £1B.
This is not a fund in deficit even though the actuaries say it is.
In my simplistic way it can pay out the pensions for the next 49 years and still not run out of money, even assuming the assets don't appreciate at all in the future (which they have over the last few years).
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