BT Group to Close Benefit Pension Plan for 10,000 Managers
February 05 2018 - 9:35AM
Dow Jones News
By Adria Calatayud
BT Group PLC (BT.A.LN) said Monday that it has reached an
agreement to close its pension plan for the future build up of
benefits for 10,000 managers, and to move them to a contribution
scheme.
The British telecommunications company said it is still in
discussions with the Communication Workers Union regarding the
20,000 employees other than managers who benefit from the pension
plan.
For 12,500 managers under the company's retirement saving plan,
BT has agreed to increase its contribution rates up to a maximum of
10% of pensionable salary.
The company said it intends to implement the changes on June
1.
For the 10,000 managers under the pension plan, BT will close
the scheme on May 31, it said. From June 1 onward, pension
contributions will go into new individual accounts in BT's
retirement saving plan, it said.
All benefits accrued in the pension plan prior to June 1 are
protected, the company said.
BT's retirement saving plan--a contribution plan--has been the
company's primary pension plan since 2009, it said. BT's pension
plan--which is a benefit scheme--was closed to new joiners in 2001,
the company said.
Write to Adria Calatayud at
adria.calatayudvaello@dowjones.com
(END) Dow Jones Newswires
February 05, 2018 09:20 ET (14:20 GMT)
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