BT Pension Index Linking

Goldwing1

I have received a copy of the BT Pension Scheme rules for section B members dated March 2009.

The document has the following comment within section 37 (c);
No amendment shall be made which would;
(c) reduce the benefits of any person who is at the deed of the amendment already entitled to receive a pension.

It would need a legal view but I would maintain that my benefits are being reduced.

Any legal eagles around?

Andy_L

Goldwing1 wrote: »

I have received a copy of the BT Pension Scheme rules for section B members dated March 2009.

The document has the following comment within section 37 (c);
No amendment shall be made which would;
(c) reduce the benefits of any person who is at the deed of the amendment already entitled to receive a pension.

It would need a legal view but I would maintain that my benefits are being reduced.

You benefits are being reduced however, as mentioned previously, the scheme rules are not being ammended as they say (paraphrasing slightly) indexation will be "by whatever rate is set by the Secretary of State for use in increasing public sector pensions and SERPS/S2P" rather than specifying RPI

Goldwing1

Andy_L wrote: »

You benefits are being reduced however, as mentioned previously, the scheme rules are not being ammended as they say (paraphrasing slightly) indexation will be "by whatever rate is set by the Secretary of State for use in increasing public sector pensions and SERPS/S2P" rather than specifying RPI

Except the last document I was issued with states;
“Pensions in payment in excess of the Guarenteed Minimum Pension (GMP) are at present increased by the Scheme at a rate equal to the increase of the cost of living over the 12 months to September of the previous year – as measured by the Retail Prices Index (RPI).”

Clearly there is a "cop out" as it says "at present". However that document is dated 1997. I wish I'd kept the old Superannuation document is was issued with when I joined.

It's all down to weasel words.

T120

New actuarial reductions due to CPI/RPI change for early pension takers will apply from 2nd April, pension scheme helpline cannot say if pension payments shown on pension planner will go up or down only that illustrations for after 2nd April will change. They also maintain that the figures shown in the illustration are accurate, which of course they are if you want to retire before 2nd April after that they are not. Hands up those that believe pensions will improve.

traineepensioner

T120 wrote: »

New actuarial reductions due to CPI/RPI change for early pension takers will apply from 2nd April, pension scheme helpline cannot say if pension payments shown on pension planner will go up or down only that illustrations for after 2nd April will change. They also maintain that the figures shown in the illustration are accurate, which of course they are if you want to retire before 2nd April after that they are not. Hands up those that believe pensions will improve.

The actuarial reduction for early retirement should be less as a result of the RPI/CPI change. Along with the extra pension payment for taking the non-increasing pension option. (hope this makes sense )

However, you'll probably find the actuarial reduction for early retirement won't be reduced because in the last 3 years we are all living longer.

When I enquired I was told that the actuarial revaluations were only affecting the extra payments for non-increasing pensions. Which is incredibly one sided

Interested_Taxpayer

JamesU wrote: »

EDM1629: Pensions Increase (Review) Order 2011 - should be withdrawn

That this House considers that the Pensions Increase (Review) Order 2011 (S.I., 2011, No. 827) which was laid before this House on 17 March 2011 should be withdrawn because the Order requires the uprating of public sector pensions using the consumer price index, replacing the retail price index which the Government has indicated will be a permanent change; notes that the Government has refused to heed arguments that a temporary three year change to the index used would represent a fair contribution from benefits and pension recipients, at a time when wage growth generally is suppressed, to reducing the deficit whilst not unfairly impacting on their incomes over the longer term; but regrets that the Government has instead indicated that the change is permanent, leaving public sector workers and the poorest in society disadvantaged permanently, yearafter year, even once the deficit is gone and earnings growth has returned.

Ed Miliband

http://www.parliament.uk/edm/2010-11/1629


Let the battle begin.....

JamesU

Bt pensioners to note.

Iktisman

I have read all of these threads as I'm trying to help a friend sort out all sorts of BT pensions issues. Can anyone please tell me the following?


What is a Cat A or B pensioner.
What is a Cat C pensioner?
What % increases did A & B receive from April 2011?
What % increases did C receive from April 2010?
Have they decided if these are to be CPI or RPI linked?


All advice and information will be gratefully received

telsy_2

The BT Pension Scheme website should have all the information you require. As a new user I am not allowed to duplicate the link in this post so I suggest you search for btpensions.net on google.

BT has followed the Government's decision to link pension increases to the consumer price index (CPI) rather than the retail price index (RPI).

For Section A/B members: -
Pensions in payment are reviewed and increased in April each year. Pensions in payment in excess of the Guaranteed Minimum Pension (GMP) are at present increased by the Scheme at a rate equal to the increase in the cost of living over the 12 months to September of the previous year.

Example: -
April 2010 was based on RPI (before the recent change to CPI) but as this was a negative figure there was no increase that year.
April 2011 should be a 3.1% increase.

For Section C members: -
Pensions in payment are reviewed and increased in April each year at a rate of 5% per annum, or, if less, inflation over the 12 months to the previous December.

I hope this helps.

Iktisman

Excellent ifo, thanks for this

Ripoff_2

Have you ALL seen this [URL="mhtml:{6EF71D81-FCE8-447B-947D-380BDD9A9C3B}mid://00000015/!x-usc:http://www.dailymail.co.uk/money/article-1384631/BT-reveal-70-rise-profits-pension-surplus.html?ITO=1490"]http://www.dailymail.co.uk/money/article-1384631/BT-reveal-70-rise-profits-pension-surplus.html?ITO=1490[/URL]
now there appears to be a pension surplus???? on our backs no doubt. This RPI to CPI con trick is just day light robbery by BT and the Government. Hope you are writing to Accenture to tell them so and demanding RPI be honoured. If not you really do need to let BT know how exactly you feel, angry, robbed, cheated, betrayed and conned are some of the words that come to my mind.

DON'T let these PENSION PIRATES get away with this, fight and fight hard.