The BT Group pension scheme's deficit hit £7.3bn gross of tax after an increase in market inflation expectations.
The group reported that as of 31 December 2013, the deficit had grown from £6.7bn at 30 September 2013 on an IAS19 basis.
This comes after the scheme saw its deficit double over the year to 31 March 2013 due to a falling discount rate (PP Online, 14 May 2013).
In the fourth quarter, the BT scheme's assets fell over the quarter from £39.3bn to £39.4bn, while liabilities grew from £45.8bn to £46.5bn.
Although the scheme's nominal discount rate increased from 4.30% to 4.35% over the quarter, its real discount rate fell from 1.07% to 0.97%. The retail prices index (RPI) rose from 3.20% to 3.35% during the three months.
The group said its net interest expense on pensions was £59m, compared to £28m in the same quarter last year.
It made deficit payments of £19m over the three months, compared to £157m in Q3 2012/13.
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Companies could be overstating their pension liabilities by up to £60bn due to their life expectancy assumptions, according to XPS Pensions Group.
Defined benefit (DB) schemes that provide GMPs must revisit and, where necessary, top-up historic cash equivalent transfer values (CETVs) that have been calculated on an unequal basis, a landmark court judgment said last week.
Regulators must act now to impose some "proper regulation" to stop another defined benefit (DB) transfer advice disaster, saysTim Sargisson.
Opportunities for defined benefit (DB) schemes to pursue investment approaches that help repair the UK’s economy cannot stand in the way of improving member outcomes, Aegon says.