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Proposed Changes to BT Pension Scheme

22 May 2008 (updated 4 June 2008 / 13 June 2008)

BT recently notified the union that they intend to make changes to the BT Pension Scheme (BTPS). But the CWU has warned BT that changes to the pension scheme will have to be agreed with the union or the company will face strike action.

In a letter to the CWU, BT Group HR Director, Alex Wilson says:

"We want to offer members more choice, while recognising that the demands being placed on the schemes are increasing. People are living much longer in retirement; the financial returns on pension scheme investments are lower than they were; and increased Government regulations have added to the costs."

The company want to implement the changes before the next triennial valuation on 1 January 2009.

CWU Deputy General Secretary (T&FS), Jeannie Drake, has already advised the Company that the CWU will NOT accept the ceasing of defined benefit pension provision, for future service, for existing members of the BTPS. Urgent meetings are being sought between the CWU and the Company.

Tom Keeney, Director of Employee Relations, BT Group, has responded to the initial concerns raised by Jeanie in a statement issued to all employees, on 22 May 2008

"As stated in my previous letter we have always supported the pension schemes, including the BTPS, however we now face serious commercial challenges and a pension funding challenge which we must address to ensure we can maintain our commitment to a defined benefit scheme. In doing this the Company will aim to ensure that the BTPS provides a level of defined benefits to Members which is of an appropriate standard but we must now update the scheme to ensure we create pensions arrangements which are sustainable in the long term."

Speaking at the CWU Annual Conference in Liverpool on Friday 13 June 2008, Jeannie Drake said:

"Changes to the pension scheme need to be agreed and a future defined benefits scheme is central to that. We not talking about shoring up pensions for people who are paid hundreds of thousands of pounds – we’re talking about preserving the pension rights for the workers who make BT successful. BT workers want to know that they will be able to retire in comfort. Ian Livingstone needs to engage the CWU. BT talks of partnership, but without the CWU involved in the pensions changes he will face a disastrous first year. If BT moves unilaterally on this they will face strike action across the UK."