LTB 349/18 – BT Pension Scheme – Update
No. 349/2018 Ref: NC/LEL Date: 15th June 2018
TO ALL BRANCHES WITH MEMBERS IN BT
Dear Colleague,
BT Pension Scheme – Update
Further to the Pension and Pay Agreement, when the BT Pension Scheme (BTPS) closes for future service at the end of June all Section B and Section C members will be auto enrolled into the BT Retirement Saving Scheme (BTRSS).
BT is issuing communications today to all members of the BTPS outlining the next steps. While enrolment into the BTRSS is automatic, members should read the BT communications carefully as there are a number of issues to consider. The main points are set out below.
- Member BTRSS contributions will be set initially at similar levels to those in the BTPS but reduced to take into account the ending of the National Insurance rebate. Members can adjust their own contributions once they are BTRSS members by using the Your Rewards site. Any changes will take effect from the month after the request is submitted.
- To ensure any revised contribution rate change takes effect from 1st July, members need to let BT know by 30th June 2018. For example members may want to pay 8% and take advantage of BT’s 11% temporary contribution immediately. Please note that once set up, a Your Rewards account can be accessed on a on a personal device.
- Members should nominate beneficiaries for core life assurance.
- Members may want to reduce the amount of voluntary life cover they have previously chosen to buy, as core life assurance will increase from 1st July 2018.
- Any allowances earned before 30th June 2018 that are pensionable under the BTPS must be entered and approved by 16th July 2018 to allow the BTPS administrators to include them in the calculation of BTPS benefits.
- In line with our Agreement, a facility to allow additional voluntary contributions (AVCs) until October 2019 has been established with Standard Life. “Special Additional Contributions” are available to all current BTPS members. Members who currently pay AVCs will have to tell BT if they want to make Special Additional Voluntary Contributions.
Attached are copies of emails that are going out to Section B and C, AVC payers and Section A members as well as a copy of the guide to Special Additional Contribution Arrangements.
Any individual enquires on these issues should be referred to the Wealth at Work helpdesk on 0800 083 5056 or email bt.pensionsreview@wealthatwork.co.uk
Yours sincerely,
Nigel Cotgrove
Assistant Secretary