Section A

Pensions Portal

Active members can manage their BT Pension Scheme on the secure member area.

Your Journey

News feed

BT Review of BTPS benefits: Update

Aug

2017

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.

Summary Funding Statement 2017 now available

Jun

2017

The Trustee has now published the Summary Funding Statement outlining the results of the 30 June 2016 actuarial interim assessment.

BT review of BTPS benefits

May

2017

BT have announced that they have commenced a review of the BT Pension Scheme (BTPS) benefits.

How much will your State Pension be?

May

2017

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?

Snap general election halts decision to reduce MPAA

Apr

2017

Following the announcement of a general election, the Government is expediting the Finance (No 2) Bill before Parliament is dissolved on 3 May 2017.

Treasury rules out any changes to UK’s pensions taxation process

Apr

2017

After much speculation, the Treasury has announced that it would not be looking to implement ‘significant changes’ to the UK’s pension taxation system.

What are AVCs?

The BTPS Additional Voluntary Contribution (AVC) facility is a tax efficient way to improve your retirement savings. You can pay extra contributions into the BTPS which are invested within a fund and which, adjusted for investment returns, are applied at retirement to provide additional pension and/or tax-free lump sum benefits. More information can be found in the AVC Guide, which can be downloaded from Useful documents.

If you pay AVCs into the BTPS you benefit from:

tax relief on your contributions (within HMRC limits);

funds accumulate free of income tax and capital gains tax; and

25% of your overall BTPS benefits, including AVCs, may be taken as a tax-free lump sum (capped at 25% of the Lifetime Allowance).

You should be aware that there are also other ways to increase your retirement savings:

If you are a Section A or a Section B member you may increase your retirement benefits by buying Added Years of Pensionable Service. A separate booklet on Added Years is available on the BT Intranet (Added Years is not available to Section C members).

Free Standing AVC Schemes, Personal Pension Plans and Self Invested Personal Pension Plans are all registered pension schemes which benefit from the same tax concessions as BTPS and AVCs. They are offered by insurance companies and similar organisations. If you wish to contribute to one of these, you must make your own arrangements with the provider of those schemes.

There are other types of investments you can consider to boost your retirement savings, but these are outside the scope of this booklet.

It is for you to decide which the best savings method is for you. As for any savings it is recommended that you seek independent financial advice. A financial adviser may charge you a fee for advice.