BT Pension Scheme Review: Help please.

jennyjj

Hi,

I'm reaching out to currently active members of the BTPS for information about the review.

I'm a deferred member and only see what little appears in the press about the upcoming review.

However, I've had sight of an email from the head of HR, Alison Wilcox, which she sent
To "All active members of the BTPS"
From "Alison Wilcox, group HR director"
Status: "For information Pensions review update"

In that email she links away to lots of lovely explanatory documents and videos. But those links were all on BT's internal network, or at least the snipped addresses were. So, even with the email, I'm none the wiser.

Assuming that we deferred members MIGHT be impacted by changes following the review, I ask, can any person with access to those docs, provide externally available copies, or maybe give us some insight into the contents.

I have emailed Alison, requesting the same.
Don't breech BT security or data confidentiality rules, of course.

JJ

xylophone

https://www.btpensions.net/

Are you familiar with the above?

Had you tried contacting Accenture?

squeeks

There wasn't a lot of information, just explanations of what the existing BTPS and BTRSS schemes are, how much they respectively cost the company and the demographics of those in the two schemes. In addition that the process is entering into a review and consultancy period.

Prospects take on it: https://library.prospect.org.uk/download/2017/01284 (behind a paywall)

Still very early days and there is little information available.

jennyjj

Thanks X and S. Yes familiar with the bt pensions site, but not much there.

I was a bit irritated that only active members seemed to get told anything.

I don't THINK that there are currently any proposals which would hurt us deferred members. Mostly seems to revolve around stopping any further accrual of service for those members still in the scheme and working to accrue years of service.

I am a bit concerned if they do something discretionary like change actuarial reduction rates or block taking benefits early, all together. Or worse options still like sealing the scheme off and flogging it to an insurance company, maybe that one that BT created a few years back.

I certainly get the impression that recent spending and the Italian scandal are leaving BT a bit more financially embarrassed than they want to admit.

Did they ever get 21cn to work? Did any old systems ever actually get ceased, such as CSS?

somethingcorporate

jennyjj wrote: »

Thanks X and S. Yes familiar with the bt pensions site, but not much there.

I was a bit irritated that only active members seemed to get told anything.

I don't THINK that there are currently any proposals which would hurt us deferred members. Mostly seems to revolve around stopping any further accrual of service for those members still in the scheme and working to accrue years of service.

I am a bit concerned if they do something discretionary like change actuarial reduction rates or block taking benefits early, all together. Or worse options still like sealing the scheme off and flogging it to an insurance company, maybe that one that BT created a few years back.

I certainly get the impression that recent spending and the Italian scandal are leaving BT a bit more financially embarrassed than they want to admit.

Did they ever get 21cn to work? Did any old systems ever actually get ceased, such as CSS?

I'm not sure this is the right forum for those questions.

jennyjj

somethingcorporate wrote: »

I'm not sure this is the right forum for those questions.

Fair enough. They were rhetorical and reflected my opinion of BT's money saving and financial prowess/standing.

madeinireland_2

So I am a current employee in section B and read the documents yesterday. There is nothing in there that would impact a deferred member as far as I could see apart from if you are in section C. There was a small section where they said they were going to court to see if the benefit accural could be changed from RPI to CPI for section C. It already is that for B.

In summary they appear to be looking at the usual things - more contributions from members, increasing the age of retirement, capping salary increases (what are those) so that only a certain amount is pensionable. They are also looking to improve the benefits of the BTRSS and covering both schemes in the review.

If I was betting I would suggest they are likely to close the scheme and move everyone to a slightly improved BTRSS. The only thing that makes me think they maybe won't close the scheme is that everyone would be they deferred and get CPI increases whereas as the moment is based on salary increases that are non existent so surely that would cost them more?

Hope this helps...

jennyjj

madeinireland wrote: »

If I was betting I would suggest they are likely to close the scheme and move everyone to a slightly improved BTRSS. The only thing that makes me think they maybe won't close the scheme is that everyone would be they deferred and get CPI increases whereas as the moment is based on salary increases that are non existent so surely that would cost them more?

Hope this helps...

Good point, Closing the scheme would mean that pensions due would increase by cpi rather than the (barely existent) pay increases. So that sounds like a disincentive.
However, there is the effect of stopping benefit accrual too. . .

So an employee with x years service will currently be getting (Years Service/80) x Final Salary ( or CARE equivalent) I.e. another 1/80th of annual salary for each additional year worked, regardless of inflation or pay rises. The serious consideration of stopping that would benefit the company.

They say that nothing in the review will affect deferred Scheme B members. What they don't say is that early payment options and Actuarial reduction rates are totally discretionary already.

madeinireland_2

Yes I see your points.

I am retiring at end of August so I will be in the deferred state soon as well.

I don't plan to take my pension till 60 so the actuarial reductions wont matter to me - only the part relating to my CARE service. I think that our ability to take the pension early can't be changed as far as I know and I would suspect it benefits the company for us to take it early so they are likely to encourage that - the actuarial reduction discounts reduced in the last change in Oct 2015 (I think) which I think was an encouragement to take it early.

robin61

madeinireland wrote: »

So d BTRSS. The only thing that makes me think they maybe won't close the scheme is that everyone would be they deferred and get CPI increases whereas as the moment is based on salary increases that are non existent so surely that would cost them more?

Well with no pay increase for managers this year when we get our 2017/18 benefit statements there will be a much lower figure for total pension saving than usual if you are a management grade that's for sure.

robin61

madeinireland wrote: »

Yes I see your points.

I am retiring at end of August so I will be in the deferred state soon as well.
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Congratulations. I'm sure you will have a long and prosperous retirement. I'm hoping things will work out for me early next year.