Since our initial posting on 30 May informing you of BT’s proposed benefit review, BT has engaged with employees and the unions, including representatives from CWU and Prospect.
The Trustee has now published the Summary Funding Statement outlining the results of the 30 June 2016 actuarial interim assessment.
BT have announced that they have commenced a review of the BT Pension Scheme (BTPS) benefits.
Reforms in April 2016 introduced the new State Pension. Most people reaching State Pension Age this year won’t be entitled to the full amount. How much will your State Pension be?
Following the announcement of a general election, the Government is expediting the Finance (No 2) Bill before Parliament is dissolved on 3 May 2017.
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:
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.
Please select from section A, B or C
For members who joined the Scheme before 1 December 1971
For members who joined the Scheme before 1 December 1971 and 31 March 1986
For members who joined the Scheme on or from 1 April 1986 but before the Scheme closed on 31 March 2001