BT Pension increases when taking it over 60

russellmr

Hi, I have recently left BT so can now take my BTPS section B final salary pension as a deferred member now at aged 62.5. However there is promise of actuary increases being applied for taking the pre 2009 part later than aged 60. This was strongly suggested in the BTPS closing down negotiations with the Unions as follows:- “Deferred BTPS members who take their pension after the age of 60 will benefit from a late retirement factor. This applies to service built up prior to 1st April 2009 and increases BTPS benefits. Late retirement factors cannot apply to anyone who became a deferred member before 1 April 2009.” It has gone quiet, I can hold off another 3 months before having to take the pension. Does anyone know if or when the trustees will apply this actuary increase say 3% per year differed after 60.
thanks

robin61

russellmr wrote: »

Hi, I have recently left BT so can now take my BTPS section B final salary pension as a deferred member now at aged 62.5. However there is promise of actuary increases being applied for taking the pre 2009 part later than aged 60. This was strongly suggested in the BTPS closing down negotiations with the Unions as follows:- “Deferred BTPS members who take their pension after the age of 60 will benefit from a late retirement factor. This applies to service built up prior to 1st April 2009 and increases BTPS benefits. Late retirement factors cannot apply to anyone who became a deferred member before 1 April 2009.” It has gone quiet, I can hold off another 3 months before having to take the pension. Does anyone know if or when the trustees will apply this actuary increase say 3% per year differed after 60.
thanks

I thought that this was already in place. Have you contacted the BTPS administrators ? I'm sure they would be able to confirm either way. I don't suppose you have a pension forecast from before June just before the various changes took place as you could compare that to an up to date quotation. There should be two things you benefit from. Both the enhancement you mentioned and more attractive actuarial reduction rates for your post 2009 pension where the NRA is aged 65.

russellmr

I contacted the Accenture administrators who gave me the improved reductions implemented in June 18 for taking the pension below 60 and for below 65 on the post 2009 part, but definitely the pre 2009 still has no increased payments between 60 and 65. Prospect and CWU both expect it to be applied but have no dates, as they say it’s down to the pension trustees. It should be paid given BT stopped people taking their btps Pension below 65 while they still worked for BT several years ago.

robin61

russellmr wrote: »

I contacted the Accenture administrators who gave me the improved reductions implemented in June 18 for taking the pension below 60 and for below 65 on the post 2009 part, but definitely the pre 2009 still has no increased payments between 60 and 65. Prospect and CWU both expect it to be applied but have no dates, as they say it’s down to the pension trustees. It should be paid given BT stopped people taking their btps Pension below 65 while they still worked for BT several years ago.

I agree and I think that's been poorly communicated. I left about 3 months ago. I'm 57 and took advantage of the new reduction terms and took my pension so it doesn't impact me but from what I read before I left I definitely had the impression that it was going to be put in place straight away. I cannot remember seeing anything that indicated it was going to be done on some unspecified future date.
It's really bad because it's clearly stopping you from taking the pension. You could write to the trustees I guess. I did that on another matter and to their credit I did receive a reply.

russellmr

I’ve done some modelling on the Pensions site and rang them up again getting a different person. Robin61 you are right over 60 pre 2009 Pension is enhanced by about 3.5% per year deferred upto 65 the latest the pension can be paid. The first person I rang clearly wasn’t knowledgeable enough, and the June18 actuary % changes made no mension of pre 2009 above 60. So poor communications by BTPS, but all good in the end. Thanks

robin61

russellmr wrote: »

I’ve done some modelling on the Pensions site and rang them up again getting a different person. Robin61 you are right over 60 pre 2009 Pension is enhanced by about 3.5% per year deferred upto 65 the latest the pension can be paid. The first person I rang clearly wasn’t knowledgeable enough, and the June18 actuary % changes made no mension of pre 2009 above 60. So poor communications by BTPS, but all good in the end. Thanks

Great. Really these recent pension changes have been fantastic for people who want to retire now. We've benefited from both more attractive reduction rates and in your case an enhancement which wasn't previously available.