Federated Investors, Inc. to Acquire Majority Interest in London-based integrated ESG Manager Hermes Investment Management from BT Pension Scheme.
Further to our update in February, BT was granted permission to appeal the High Court judgment to the Court of Appeal.
BT has announced the closure of Section B and C of the Scheme to future accrual in early summer 2018, having reached an agreement with the Communication Workers Union and Prospect.
The 2018 Trustee newsletter is now available and can be found on the Useful documents page. Members will receive a copy in the post over the next few weeks.
Are you looking to make a change to your regular additional voluntary contribution (AVC) payments in this tax year?
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 between 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