Business
BT to close defined benefit pension scheme
BT to close defined benefit pension scheme.
About this update from Bt Group Plc
[{"type":"text","content":"\n \nRNS Number : 1546I BT Group PLC 19 March 2018 \n\n \n 19 March, 2018\nBT ANNOUNCES CLOSURE OF ITS DEFINED BENEFIT PENSION SCHEME\n \n· Future pension benefits for active BT Pension Scheme members to move to an enhanced defined contribution scheme \n· BT agrees with Communication Workers Union to establish a 'hybrid' pension scheme, combining elements of both defined benefit and defined contribution schemes\n· Changes ensure fair, flexible and affordable pensions for all BT employees\n \nBT today announced the closure of its defined benefit pension scheme, having reached an agreement with the Communication Workers Union (CWU) on the future pension arrangements for 20,000 non-management employees or 'team members'.\n The company has decided to close its defined benefit scheme, called the BT Pension Scheme (BTPS), to future benefits in early summer 2018. Our intention is to do so from 31 May 2018, in line with our previous announcement in relation to closure for managers. However, there are some complex administration-related issues that the Trustee is working to resolve. In the event that these issues impact the timetable we will provide a further update.\nBenefits accrued in the BTPS for service prior to 1 June 2018 remain preserved within the BTPS and subject to revaluation in line with BTPS rules and relevant legislation.\nFollowing a consultation with employees, BT has updated its plans and will make additional transition payments to all ex-BTPS team members moving into the BTRSS, as well as providing a higher maximum BT contribution rate of 11% for an extended temporary period. \n  ...