Additional options at retirement

Alongside the options which are already available to members under the Scheme, from 6 April 2015 members can transfer their Defined Contribution (DC) benefits (i.e. AVCs) out of the BT Pension Scheme into one or more different pension registered arrangements.

Different DC pension arrangements will offer different options in relation to the way in which members can take their benefits.  These options are likely to include the option to purchase an annuity (i.e. a guaranteed income for life) but may also include other options not offered by the BT Pension Scheme.  Different options of taking your DC benefits will have different features, different rates of payment, different charges and different tax implications.

Please note that:

• there may be tax implications associated with the way you choose to take your DC benefits
• income from a pension is taxable; and
• the rate at which income from a pension is taxable depends both on the amount of income you receive from that pension and also income from other sources.

More information on the options available and the issues to consider when deciding which option might be most suitable for you can be found through Pension Wise (see option in left hand menu for more details). You can request information about your AVC benefits, your rights to transfer your AVCs and your options under the BTPS rules by contacting us using the details on the contact us page.

Please also read the guidance from the Pensions Regulator that explains the characteristics of each of the possible options here. Please note that not all of these options are offered by the BT Pension Scheme.

In addition, you may wish to consider taking independent financial advice.