BT Pension Scheme Review: Help please.

Sorry about the shouty subject, This thread is for deferred members of BT's Final Salary scheme (BTPS)

If you are a deferred member of the BTPS, then there maybe some massive changes afoot that could make a massive difference to your pension and your lump sum.

We all know that there is an actuarial reduction if we take the pension early and for pre-2009 that amounts to about 5% for each year taken before 60 with an additional reduction for post-2009 service for each year taken before 65. For those of us with most of our service before 2009, the general consensus is to ignore the reduction on the post 2009 service ant to draw the pension at 60, or just a few years before. That, indeed is my intention as I didn't think 5% for each year was a big deal, what with getting extra years in payment.

BUT, here's the news, and so far it is NOT absolutely confirmed! The reduction rates, have apparently been revised for June 1st onwards to something like 3% for each year taken early. This info is being widely distributed in outbound calls from Wealth At Work, BT's favoured advisor, and an organisation with in depth knowledge.

There's some chatter about this on facebook (link below). Apparently some BT deferred members have contacted the Chesterfield BT Pensions team and received confirmation that the change is coming effective June 1, but I've yet to see this in writing. I personally phoned the BT Pensions helpline and went to an offshore team, where I requested my 'option pack' and I requested a list of actuarial reduction rates. I told the advisor that I had heard that the AR rates were due to change, and could she check for me. She checked and said her manager had not had any notification of forthcoming changes. She sent me the reduction rate table and it shows the same old 5% (ish) reduction per year for pre-09 service. I'm still awaiting my quote.

I'm quite concerned that my quote might well get prepared based on the old table and if I crystalise it (1 year before 60) that I will be getting 2% less tax free lump sum and 2% less pension till the day I die!

All that assumes that the story emerging about the 3% rates are correct, which would be a remarkably generous improvement by the trustees at a time when they are strapped for cash.

I actually suspect that there is another change paired with the reduced actuarial reduction rates that will counter the potential benefit : Something like Yes, it's 3% but you can only take it early if your leg drops off ( or, more seriously, if you are still in service and leave in July )

Here's the link to the chatter on facebook. It's a group which you may have to join.
https://www.facebook.com/groups/175048092553798/permalink/1852415374817053/?comment_id=1861865850538672&notif_id=1527755752605485&notif_t=group_comment_follow

Here's what Wealth at Work wrote to one member of the scheme...

"According to the member guides sent out by BT “The new improved factors are expected to be in place by 1 June 2018 (or on completion of the BTPS actuarial valuation, if later)” And therefore are expected imminently. We do not know exactly what these factors will be as yet however BT have given a rough guide of expected reduction factors of 3%p.a. for Section B members and 3.5%p.a.for Section C members."

As the story unfolds, if anyone can add to this thread, please do so.