BT pension scheme to be overhauled
04 November 2008
Telecoms company BT is to change the terms of its final salary pension scheme, which could affect around 65,000 staff, it has been reported.
According to the BBC, the changes could see the plan become more expensive or reduce payouts for workers.
New options in the changed scheme are a higher age of retirement, the option of larger contributions from staff or basing payments on the career average pay instead of final salary.
Get a Free Guide to Child Saving Plans
The news comes after BT announced a massive drop in profits last week and if the modifications to the pension scheme are approved, it could mean that staff are working longer for ultimately less money.
BT's final salary plan has 65,000 active members, 275,000 deferred and almost 20,000 in a defined-contribution scheme and is one of the largest in the private sector. It was closed to new members in 2001.
A company spokesperson said that the review of the scheme was to ensure the protection of the plan and its members.
