Employment News

BT Pension Scheme - Payment to Bank Accounts Overseas

14 February 2007

The CWU has been informed by BT that the current practice of paying BT Pension Scheme (BTPS) pensions into overseas bank accounts at the request of the pensioners is to cease.

BT has been paying costs of both the UK and overseas bank charges including the cost of currency conversion on these payments. The cost to BT of this practice is currently £120,000 per year and rising.

BT has stated that it can no longer justify providing a discretionary benefit to certain pensioners (i.e. those who have chosen to have their pensions paid into overseas bank accounts) and BTPS Trustees have accepted the change, as they could not justify providing beneficial service to one particular group of members from BTPS funds.

The existing practice will be discontinued for new pensioners with immediate effect and for those who currently have an overseas bank account with effect from 1st April 2007.

Any pensioners affected by this can either decide to have their pension paid into a UK bank account, or to continue having their pension paid overseas. In the latter case all bank charges and associated costs over and above the standard BACs charges will be chargeable to the pensioner involved. However, BT has negotiated preferential rates with the Royal Bank of Scotland, who will charge an all-inclusive price to pensioners of £3.50 per payment. This charge also covers conversion costs and the overseas bank charges.