BT is to close its defined benefit BT Pension Scheme to managers for future accrual on May 31 2018.
From this date, pension contributions for those affected will enter individual accounts with the defined contribution BT Retirement Saving Scheme.
The announcement follows an agreement reached between BT and the union Prospect in January. The new proposals were supported by 60 per cent of union members.
All benefits accrued in the BTPS for service before June 1 2018 are protected. BT intends to implement the changes on this date.
The company has also reached a deal with Prospect for managers currently in the BTRSS. From June 1, BT's ongoing standard contribution rates will increase to up to a maximum of 10 per cent of pensionable salary.
BT remains in negotiations with the Communication Workers’ Union, which represents non-managerial staff at BT.
