Last checked at 19 Jan 2018 10:08
This announcement contains inside information.
DC18-018 19 January 2018
COURT RULES RPI REMAINS THE RELEVANT INDEX FOR PENSION INCREASES IN SECTION C OF BT PENSION SCHEME
In December 2017, we sought a decision from the High Court as to whether it would be possible to change the index used to calculate pension increases paid in the future to members of Section C of the BT Pension Scheme (BTPS) from the Retail Prices Index (RPI) to another index.
The High Court has handed down the judgment today which confirms that it is currently not possible to change from RPI to another index. We are disappointed with the decision and will now consider the judgment in detail in order to decide next steps, including the possibility of an appeal. The relevant index for pension increases for members in Sections A and B of the BTPS remains unchanged as the Consumer Price Index (CPI).
Other pension matters
The triennial valuation is proceeding and constructive discussions continue with the BTPS Trustee and we still expect to complete the valuation in the first half of the 2018 calendar year.
We continue to review the future pension benefits under our main defined benefit and defined contribution schemes in the UK, with the objective of providing fair, flexible and affordable pensions. We have just completed a consultation with our affected employees and are now considering their feedback before concluding the review.
Note:
The membership of the BTPS as at 31 March 2017 is analysed below:
Active members | Deferred members | Pensioners | Total | |
Sections A and B | 11,500 | 25,500 | 176,000 | 213,000 |
Section C | 21,000 | 38,500 | 23,500 | 83,000 |
Total | 32,500 | 64,000 | 199,500 | 296,000 |
- Ends -
The person responsible for making this announcement is Dan Fitz, BT's Company Secretary.
For more information, visit www.btplc.com
Enquiries
Press office: | |
Dan Thomas | Tel: 020 7356 5369 |
Investor relations: | |
Mark Lidiard | Tel: 020 7356 4909 |
About BT
BT's purpose is to use the power of communications to make a better world. It is one of the world's leading providers of communications services and solutions, serving customers in 180 countries. Its principal activities include the provision of networked IT services globally; local, national and international telecommunications services to its customers for use at home, at work and on the move; broadband, TV and internet products and services; and converged fixed-mobile products and services. BT consists of six customer-facing lines of business: Consumer, EE, Business and Public Sector, Global Services, Wholesale and Ventures, and Openreach.
For the year ended 31 March 2017, BT Group's reported revenue was £24,062m with reported profit before taxation of £2,354m.
British Telecommunications plc (BT) is a wholly-owned subsidiary of BT Group plc and encompasses virtually all businesses and assets of the BT Group. BT Group plc is listed on stock exchanges in London and New York.
For more information, visit www.btplc.com