We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
BT Pension Scheme Review: Help please.
Options
Comments
-
Yes definitely. There is no point whatsoever deferring your pension past age 60. You would never live long enough to make up for the pension you have missed out on if you deferred just to avoid the hit on the post 2009 service.
There are no enhancements for your pre 2009 service so make sure you take it when you are 60.
Actuarial Enhancement would be fair and potentially lucrative.
Without it, as many have said, it would be insane to defer past 60.0 -
It was something ExBTBob implied that accenture had told him in this thread http://forums.moneysavingexpert.com/showpost.php?p=67669983&postcount=50
Actuarial Enhancement would be fair and potentially lucrative.
Without it, as many have said, it would be insane to defer past 60.
Honestly there is no enhancement for deferring past 60 other than avoidance of the actuarial reduction on your post 2009 benefits and believe me for the small amount extra it's not worth foregoing your pension for up to 5 years.
You can have a look at the scheme B booklet here if you want to put your mind at rest. .
https://www.btpensions.net0 -
Honestly there is no enhancement for deferring past 60 other than avoidance of the actuarial reduction on your post 2009 benefits and believe me for the small amount extra it's not worth foregoing your pension for up to 5 years.
You can have a look at the scheme B booklet here if you want to put your mind at rest. .
https://www.btpensions.net
There's nothing explicitly stated about actuarial enhancement for taking pension late, except on page 21 where it describes what happens if one chooses to defer taking a pension at 65 while continuing to be employed. In that case, there is enhancement. Why they specify this for those who go defereed but continue in employment is not explained.You may stop contributing (or participating in Smart Pensions) and defer drawing your pension and lump sum. You would then be treated as if you had opted out of BTPS membership. However, your deferred pension would receive an additional increase to the standard pension increase each year to reflect the later payment of your pension and lump sum
The above options are available to you at any time between your Normal Pension Age and the date you actually leave BT.
So, BT does acknowledge the logic, at least of actuarial enhancement. I think it's time I called Accenture again to see if they have any understanding of this concept.0 -
Did you notice that there was another option as well to continue contributing and building up additional benefits ?
The second option you've pointed out doesn't mention how much the enhancement is.
I guess if anyone does want to continue working for BT beyond age 65 they would need to get the figures and work out which of the two options is best for them.
This isn't something I will ever need to decide. I believe if you do 50 years in BT you get invited for lunch in the BT Tower. Which is a very impressive venue not open to the public. I used to go there quite often with customers but going there again under these circumstances doesn't seem that tempting. I'd almost be there at age 65 !0 -
Congratulations. I'm sure you will have a long and prosperous retirement. I'm hoping things will work out for me early next year.
Thanks - I hope things work out for you as well. The magic figure for me was 18 months which I just couldn't refuse as I was only expecting 11 months.
I'm sure I've checked on the enhancement position past 60 and I'm fairly certain the answer was that there was none - so agree with the position Robin is suggesting - but happy to be proved wrong Jenny if you find out different.0 -
madeinireland wrote: »Thanks - I hope things work out for you as well. The magic figure for me was 18 months which I just couldn't refuse as I was only expecting 11 months.
That's a very nice result for you.0 -
Thanks Robin,
There's nothing explicitly stated about actuarial enhancement for taking pension late, except on page 21 where it describes what happens if one chooses to defer taking a pension at 65 while continuing to be employed. In that case, there is enhancement. Why they specify this for those who go defereed but continue in employment is not explained.
So, BT does acknowledge the logic, at least of actuarial enhancement. I think it's time I called Accenture again to see if they have any understanding of this concept.
Jenny it seems I may have been wrong here. Some of the things I've seen as part of the pension consultation suggest that there is an actuarial enhancement if you defer last 60. I think it may only apply to the pre 2009 benefits though ? And nobody has said how much you would gain.
Did Accenture clarify this for you ? Mind you I don't think this is well explained at all in any of the literature I've read in the past.0 -
Jenny it seems I may have been wrong here. Some of the things I've seen as part of the pension consultation suggest that there is an actuarial enhancement if you defer last 60. I think it may only apply to the pre 2009 benefits though ? And nobody has said how much you would gain.
Did Accenture clarify this for you ? Mind you I don't think this is well explained at all in any of the literature I've read in the past.
The offshore call centre agent I spoke to was not aware of any actuarial enhancement. It would absolutely make sense for there to be enhancement for pre 2009 years, but it is not at all surprising that few or none know anything about it.
What have you seen that changes your mind on this?
There is an enhancement when deferring past 65 and still working, esp on the 2009 years.0 -
Thanks Robin, especially for the personal message.
The offshore call centre agent I spoke to was not aware of any actuarial enhancement. It would absolutely make sense for there to be enhancement for pre 2009 years, but it is not at all surprising that few or none know anything about it.
What have you seen that changes your mind on this?
There is an enhancement when deferring past 65 and still working, esp on the 2009 years.
The actuarial enhancement seems to be part of the proposals in the negotiation in the closure of the BTPS. There are a number of changes being considered and this seems to be one of them. I had assumed it was only for the pre-2009 part beyond 60.
Also included is the ability to split taking the pre and post 2009 parts (each with its own actuarial reduction if taking early).0 -
tigerspill wrote: »The actuarial enhancement seems to be part of the proposals in the negotiation in the closure of the BTPS. There are a number of changes being considered and this seems to be one of them. I had assumed it was only for the pre-2009 part beyond 60.
Also included is the ability to split taking the pre and post 2009 parts (each with its own actuarial reduction if taking early).
That explains why I wasn't previously aware of the enhancement then. I must say they could've been clearer about it being part of the new proposals.
Yep I saw the bit about being able to split the pre and post 2009 elements of the pension and take them at different times. Not until 2019 it seems.
Also I'm very interested to find out what the changes to the actuarial reduction rates will be. I'd kinda made up my mind to defer to 60 assuming I retire early but this might change things if it's generous enough. I hope they don't take too long. Apparently the trustees need to agree.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 351K Banking & Borrowing
- 253.1K Reduce Debt & Boost Income
- 453.6K Spending & Discounts
- 244.1K Work, Benefits & Business
- 599K Mortgages, Homes & Bills
- 177K Life & Family
- 257.4K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards