Section
A/B Scheme Details
Note
for Section A Members
Benefits
Payment of Your Scheme
Benefits
Pension Increases
Transfer of Benefits
Other Information
Note for Section A Members
If you were employed by the Post Office before
1 December 1971, you may be entitled to benefits under Section
A of the Scheme. Under the terms of Section A, benefits are
payable in line with those of the PCSPS and Pensionable Pay
is reduced by 6% when benefits are calculated. Any member
who is eligible for Section A benefits may choose to elect
for Section B by the age of 59.75 or within 6 months of leaving
the Scheme, if earlier.
As Section B benefits are usually better than
the equivalent PCSPS benefits, details of Section A rules
and PCSPS benefits are not described in this booklet. If you
were to die in service before making an election for Section
B benefits, the better benefits will be paid.
If you are eligible for Section A benefits, you
will be given information about the alternative Section A
or Section B benefits prior to retirement.
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Benefits
Normal Retirement
At Normal Retirement Age, if you have at least 2 years of
Qualifying Service, you will be entitled to a pension and
an immediate lump sum from the Scheme based on your Pensionable
Service (expressed in years and days) and Final Pensionable
Pay.
You will receive an annual pension from age 60
payable for life equal to:-
1/80 x Final Pensionable Pay x Pensionable Service
plus
a lump sum of 3/80 x Final Pensionable Pay x Pensionable
Service
Note: Pensionable Service is subject to a maximum of
40 years.
Early Retirement
Early Payment of Actuarially
Reduced Benefits
An actuarially reduced pension and lump sum may be available
to deferred pensioners from the age of 50, irrespective of
the reason for the cessation of Scheme membership. If you
would like further information please contact the pensions
adminstrators, Accenture HR Services.
Early Payment of full Benefits
If you opt to receive a deferred pension, then circumstances
could later arise where you wish to apply for this pension
to be paid early on ill-health or (rarely) compassionate grounds
- eg: extreme hardship as a direct result of having to give
up work to give full time care and attention to a sick or
elderly relative.
Early payment for other than your own ill health
will not be considered until you are aged 50. If you would
like further information please contact the pensions adminstrators,
Accenture HR Services.
Death after leaving with
payment of benefits deferred
If you have a deferred pension and die before Normal Retirement
Age, your Widow/Widower/Adult Dependant and any eligible children
will receive pensions similar to those that would have been
payable if you had died in service except that there will
be no enhancement of service. In addition, a lump sum death
benefit would be payable.
Unmarried Members
at Retirement
Family Benefit Provision
- refund of contributions for pre 6 April 1978 service
If you are unmarried when you retire, you may be eligible
for a refund of any family benefit contributions you paid
before 6 April 1978 or you can choose to leave them in the
Scheme to provide a full Widow/Widower/Adult Dependant’s
pension should your circumstances change in retirement.
Death in Retirement
Widow, Widower or Adult Dependant’s
Pension
In the first
5 Years of Retirement:
If you were a member of Section B of the Scheme and were
to die within 5 years from the commencement of your pension,
a cash lump sum will become payable at the discretion of the
Trustee. It will normally be equal to the total amount of
pension that would have been paid for the remainder of the
5 years. In addition, if you leave a Widow/Widower/Adult Dependant
he/she will receive a pension payable at the rate for which
you make provision at retirement. A Widow/Widower/Adult Dependant’s
pension will be payable for life.
After 5 Years
of Retirement:
If you die after 5 years of retirement, your Widow/Widower/Adult
Dependant will, for the first 91 days, receive a pension equal
to the pension paid to you immediately before your death.
After that period, the pension payable will depend on the
provision that you make at the time of your retirement.
Children’s Pensions
If you die whilst in receipt of a pension and you leave a
Dependent Child or Children (see definition), a pension will
be payable for that child or those children. The amount of
the pension will depend on the number of eligible children
and whether there is a surviving Widow/Widower/Adult Dependant.
Death - General
Adult Dependant's Pension
If you are not married you may be able to nominate an adult
who is financially dependent on you, and is likely to continue
to be so, to receive the pension that would have been payable
to your Widow or Widower.
Such a nomination would remain in force unless
you revoked it in writing or became married. A booklet (including
a Nomination Form) is available on request or via the Intranet.
Surrender of Part Pension
If you are medically fit you may, within six months before
your pension becomes payable, surrender part of your pension
to provide extra pension for either: your Widow, Widower or
one dependant after your death.
If you feel that you would like more information
about this option please ask the pensions adminstrators, Accenture
HR Services, for details during the six months prior to your
pension becoming payable.
Section A Members
If you were a continuous member of the Pension Scheme before
1.12.71 and choose Section A benefits on retirement a lump
sum may become payable on your death, depending upon the total
benefits that you have received since retirement.
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Payment of Your Scheme
Benefits
Your BT Pension
Your pension and any Widow, Widower, Adult Dependant or Child(ren)’s
pension(s) will be paid in arrears in monthly instalments.
Pension payments are treated as earned income for tax purposes.
Death Benefit
A lump sum death benefit will not normally attract a liability
for inheritance tax as the payment is made under a discretionary
trust.
Within the Trust Deed of the Scheme, there is
a list of persons to whom the Trustee can pay the lump sum
benefit. They include widow, widower, children and dependants.
You can however inform the Trustee that you wish to nominate
other persons or organisations by completing an Expression
of Wish form. Any payment will always remain at the discretion
of the Trustee.
An explanatory booklet and Expression of Wish
form can be found on the Forms
page.
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Pension Increases
Pensions in payment are reviewed and increased
in April each year. Pensions in payment in excess of the Guaranteed
Minimum Pension (GMP) are at present increased by the Scheme
at a rate equal to the increase in the cost of living over
the 12 months to September of the previous year - as measured
by the Retail Prices Index (RPI).
Any increase on the GMP earned before 6 April
1988 will be paid by the State along with the basic State
retirement pension and any increase up to 3% earned on or
after that date will be paid by the Scheme, with any balance
of such increase being paid by the State. During the first
year the pension starts to be paid, a proportion of the full
annual increase will be awarded.
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Transfer of Benefits
If you were a member of another pension scheme
before you joined the Scheme and you have pension benefits
preserved in that scheme, then you may be able to transfer
the value of those benefits into the Scheme. You should advise
Accenture HR Services of your interest in a transfer to the
Scheme as soon as possible after joining the Company.
A transfer takes the form of a payment from your
previous scheme to the BT Pension Scheme which is converted
into a period of Pensionable Service in the BT Pension Scheme.
A transfer is accepted at the discretion of the Trustee.
For further information please contact Accenture
HR Services. Contact details are to be found in Who’s
Who.
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Other Information
State Pensions
The State Basic Scheme
The State provides a basic flat rate pension at State Pension
Age (SPA). The SPA for men is 65. The SPA for women has been
altered to 65 for women born after 6 April 1955. A sliding
scale applies for women born between 6 April 1950 and 5 April
1955. The SPA for women born before 6 April 1950 continues
to be 60.
Married women who have only ever paid National
Insurance contributions at a reduced rate are not eligible
for their own State pension.
Membership of the BT Pension Scheme does not affect
your entitlement to the basic flat rate State pension.
Additional State Pension
Whilst you were an active member of the BT Pension Scheme
you were contracted-out of the second tier State pension provision
and paid lower rate National insurance contributions as a
result.
In
relation to the part of Pensionable Service built up before
6th April 1997:
Your pension from the Scheme will never
be less than the pension you would have earned had you remained
in the State Earnings Related Pension Scheme (SERPS). This
is known as your Guaranteed Minimum Pension or GMP.
On your death, your Widow, Widower or Adult Dependant
will receive a pension which is at least half your own GMP.
In
relation to the part of Pensionable Service built up after
5th April 1997:
The Scheme’s Actuary has to certify
that the Scheme provides a certain minimum level of benefit.
In practice, in almost all circumstances, the benefits provided
by the Scheme will be significantly better than would otherwise
have been expected under SERPS (to 05/04/1997) and the Second
State Pension (from 06/02/2002).
The GMP must always be paid as a pension and therefore
this may restrict the amount of the tax-free cash sum that
you may wish to take from the Scheme at retirement.
Use of Benefits as Security,
etc
You are not allowed by law to make use of or assign your Scheme
benefits (present or future) as security or collateral for
any mortgage, loan or debt. Any attempt to do so could result
in the benefits ceasing to be payable.
Disputes
As required by the Pensions Act 1995, the Scheme has an internal
procedure for resolving any disputes which may arise. This
is a two stage process. In the first instance you must address
your complaint to the following address for referral to the
Secretary to the Trustee of the Scheme:
The Technical Services Manager
Accenture HR Services
Venture House
Venture Way
Chesterfield
S41 8NR
In normal circumstances you will receive a full
response within 2 months. If you are dissatisfied with this
response you will be entitled to refer the matter to the Trustee
within 6 months of receiving it. The Trustees will then reply
directly to you, where possible within 2 months.
Hopefully, any dispute will be resolved by the
Secretary to the Trustee or the Trustee. However, you can
also approach The Pensions Advisory Service (TPAS) details
of which are given below.
The Pensions Advisory Service
11 Belgrave Road
London
SW1V 1RB
This
service is available to help members and beneficiaries of
occupational pension schemes resolve difficulties with Trustees
or Administrators. Should TPAS be unable to resolve any difficulties,
the Pensions Ombudsman has the power to investigate and settle
complaints of mal-administration and disputes of fact or law
relating to occupational pension schemes. The Ombudsman can
be contacted at the same address as TPAS.
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