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.
The increases payable by the Scheme on the Guaranteed Minimum Pension (GMP) element of your BTPS pension are determined by the BTPS rules and relevant legislation. No changes have been made to the increase provisions in the BTPS rules. However, the government has changed the law and this impacts the increases which will be payable on your GMP in future.
In summary, the GMP is the amount of pension built up in the BTPS and which the BTPS must provide to you as a result of your employment being contracted out of SERPS/ State Second Pension (S2P) up to 1997.
The position may be different in other pension schemes so please check those if you have other pensions outside of the BTPS.
If you reached State pension age before 6 April 2016, the government will continue to pay the increases on your GMP built up before 6 April 1988. The Scheme will continue to pay increases on the GMP element of your BTPS pension that was built up after 5 April 1988, in line with orders published by the government, up to 3% each year. Any increase above 3%, on the GMP you built up after 5 April 1988, will be paid by the government. Increases paid by the government will be paid along with your basic State Pension and any additional State pension you receive.
If your State pension age is on or after 6 April 2016 and up to and including 5 December 2018, any increase due on the GMP element of your BTPS pension will be paid by the Scheme.
If you reach State pension age after 5 December 2018 any increase on the GMP element of your BTPS pension will depend on the application of the BTPS rules and relevant legislation at the time. We are not able to be more precise at this time as the government has not yet decided what the requirements will be.
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