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.
From time to time the Trustee carries out a formal review of the actuarial factors which are used to calculate certain pension benefits. Such a review has recently been completed and the Trustee has decided to update the actuarial factors with effect from 1 October 2015. If you are retiring before 1 October 2015, this will not affect the retirement amounts provided to you. If you have already requested to retire on or after 1 October 2015 your pension benefits will automatically be calculated on the new factors for your selected retirement date. Depending on the options you have selected, the change in factors is expected to result in either no change or a small uplift to your benefits.
The terms on which pension benefits are calculated are reviewed regularly by the Trustee and will continue to change from time to time.
Please note that if you receive improved benefits (relative to those in your quote before 1 October 2015) as a result of the change to actuarial factors then this may impact your tax position in relation to the annual or lifetime allowances. If you think you may be in this position and wish to reconsider your retirement choices as a result, please contact Peopleline on 0800 731 1919. Please remember that when considering your tax position in relation to the annual or lifetime allowance you must take into account all your pension arrangements and not just your BTPS benefits.
For more information on the current lifetime and annual allowances and details of the changes announced in the Summer Budget, please see the government website https://www.gov.uk/tax-on-your-private-pension/overview”
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