BT has announced that its pension scheme members will have the option of switching to its new ‘hybrid’ scheme on 1 April 2019.
Following months of negotiations with the CWU, the BT Hybrid Scheme (BTHS) will be available to around 19,000 BT, Openreach and BT Fleet workers who were active members of the BT Pension Scheme (BTPS) when it closed for future service accrual earlier this year.
As long as the members are still working for one of the three companies on 1 April 2019 they will have the option of switching to the BTHS.
CWU assistant secretary, Nigel Cotgrove commented: “This is a key step in the implementation of our Pension Agreement.
“It’s now important that anyone eligible to join the BTHS weighs up the alternatives before making an informed decision as to what is best for them.”
The new scheme will combine elements of DB and DC pension benefits and is designed to reduce investment risk and provide greater certainty over pension benefits.
Members of the BTHS will receive guaranteed DB pension benefits on the first £17,500 of salary and DC benefits on the residue.
Cotgrove added: “While former BTPS contributors obviously have an important decision to make, the fact that the BTHS formally launches on 1 April next year means there is time for individuals to weigh up the options in detail.”
To communicate the changes to the employees, a series of seminar, webinars and conference calls will be make accessible to potential BTHS members over the coming months.
Cotgrove concluded: “In the coming days, thousands of deferred members of the BTPS will receive a ‘Time to Choose’ booklet as well details of an online modeller that will allow them to compare the relative benefits of the BTHS and BTRSS in various different scenarios.