BT Group Reaches Pension Scheme Agreement With Workers Union

LONDON (Alliance News) - Telecoms firm BT Group PLC said Monday it has closed its benefit pension scheme after reaching an agreement with the Communications Workers Union.

BT said it has agreed with the union to establish a new "hybrid" scheme over the coming year for team members leaving the BT pension scheme.

The new arrangement, it said, will combine elements of both the defined benefit and defined contribution pension schemes to support team members on lower pay scales, giving them another option for retirement savings. The hybrid scheme, it said, is intended to offer employees less investment risk over the longer term and will be separate from the BT pension scheme.

The company will close its pension scheme to future benefits from the end of May.

Chief Executive Gavin Patterson said: "I feel it's critical that we provide fair, flexible and affordable pensions for all our people. I'm committed to helping them save for retirement, so I'm pleased we've reached an agreement with our unions."

"These changes also bring far more financial certainty for the company in terms of our future pension arrangements. This will help us balance the needs of BT pensioners with the investments we are making to future-proof the UK's communications networks and improve customer experience."

In early February, BT said it is to close its defined benefits pension scheme to around 10,000 managers at the end of May.

The telecoms giant said it had reached an agreement with Prospect - a professionals trade union - with regard to around 22,500 BT managers. BT will close its defined benefit BT pension scheme to managers for future build up of benefits from the end of May. There are around 10,000 managers on the BT pension scheme.

BT shares were down 0.9% on Monday at 225.85 pence each.