BT shares fell by nearly 9% last Friday (12.02.10) after its 17 year plan to expunge its £9 billion pension fund deficit failed to impress the Pension Regulator.

The pension trustees and BT agreed upon the 17 year plan to plug the deficit which will begin with BT putting £525 million a year into the fund for a period of three years before increasing the amount. Experts believe that the Pension Regulator is unhappy with the fact that BT’s ten year plan has been vastly extended as the debt spirals even further out of control.