BT Pension Review Update - 5th June 2017
BT has advised the CWU that it intends to review the current BT Pension Scheme (BTPS) arrangements. At the same time it has also given the CWU 12 months notice to terminate the 2008 Pension Agreement.
The 2008 Agreement was legally binding and was put in place to make the BTPS sustainable. Among other things the Agreement introduced career average benefits, raised the normal pension age to 65 and increased member contributions. The Agreement also included improvements in the BT Retirement Saving Scheme (BTRSS). Under the terms of the Agreement it can be amended by mutual agreement and can also be terminated by giving 12 months notice.
The BT announcement comes shortly after press reports suggest that the BTPS deficit in 2016 was in the region of £14 billion, up from £10 billion in 2015, and ahead of the triennial valuation which is due later this year. The valuation will determine the schedule of payments that BT has to make in order to fund the pension to ensure it meets its liabilities.
BT has stated that nothing has been ruled in or out and that if any changes are necessary it will be seeking to do this by agreement with the CWU.
Deputy General Secretary (T&FS) Andy Kerr said:
"The CWU has also confirmed that as the 2008 Agreement covers both the BTPS and BTRSS we will be seeking improvements to the BTRSS as part of the review process in line with our recent agreed Conference policy.
"There is unlikely to be any developments in the next couple of months as the Union will now be commencing negotiations with BT over its plans for the future."