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BT Mobile Worker Payments (Salary Sacrifice Scheme) Phase 2

19 November 2007

BT has revamped and is re-introducing the Mobile Worker Payment initiative - this time extending it to a wider section of the workforce.

As far as the CWU is aware, BT have emailed all possible eligible individuals an explanation of the scheme with links to a web page that has the booklet as a PDF and a questionnaire for completion online. Individuals have been encouraged to use this route to access the information and sign-up. A booklet will go to their home address in case they cannot access on-line or wish to keep a copy.

Accenture will collate, analyse and provide assessment of eligibility. Assuming eligibility is confirmed Accenture will enrol and set up payments. BT has advised that sign-up should be completed by 30 November with first payments the following month

BT has already responded to a number of questions CWU head Office has been asked by members.

Q1. What is happening to employees who are already opted-in to the MWP?
A1. This is phase 2 and applies to a different set of employees. Those opted-in through phase 1 will see no change.

Q2. The document refers to the scheme running potentially indefinitely, but don't such schemes, by law, require an annual opt-in?
A2. There is no need for an annual opt-in confirmation.

Q3. There are no "warning signs" for individuals for whom participation would have a detrimental impact on the Secondary State Pension.
A3. The details on the Secondary State Pension will be issued as a separate brief to those who are in the BTRP. The briefing will be the same as agreed for Phase 1 as the issue is the same, it has been approved by external tax consultants, KPMG.

The change here is that now individuals who are 80% mobile (as opposed to 100%) are able to opt-in to MWP Phase 2. One of the fundamental problems with Phase 1 when it was initially introduced was that it was implemented on a "opt out" basis. It could be argued that the effects of our opposition were sufficient to encourage a change of policy and the "opt-in" approach has been retained for Phase 2.

The union has sought clarification on the assertion that there is no need for an annual opt-in. The latest report from Income Data Services confirms that the company's position is correct.

Latest News: BT "Mobile Worker Payments" (Salary Sacrifice Scheme) 20 March 2007