Participants in the BT Pension Scheme, London, will move to a defined contribution plan on June 1 rather than April 1, after the union representing BT management employees negotiated new improved terms to the agreement struck in January.
BT Group PLC will implement a number of improvements following the negotiation with Prospect, the union said in a news release Monday. It will allow managers in the BTPS to continue to make additional voluntary contributions into their old plan until Sept. 31, 2019, after it is frozen on May 31. In addition, the period for additional employer contributions to those transferring to the DC plan, BT Retirement Saving Scheme, was extended up to May 31, 2023, two years later than the original proposal. "For example, during that time BT will pay 11% of salary for managers paying 8% of salary into the BTRSS," the Prospect release said.
BT will also introduce an option for managers aged 55 or over to draw their BTPS pension while continuing to work for the company for a further two years.
"During a very difficult negotiation we secured decent protections for those having to transfer for future service, as well as improved employer contributions for people already in the BTRSS," said Philippa Childs, national secretary at Prospect, in a news release.
BT is still in discussions with the Communication Workers Union on retirement plan arrangements for the rest of the company's workforce.
A BT spokesman could not be reached to provide additional details.