BT staff notified of pension scheme judicial review

BT staff notified of pension scheme judicial review

BT has notified staff who are members of the section B BT Pension Scheme (BTPS) that it is seeking a judicial review of a government decision on pension increases.

Thousands of members of the scheme will be affected and the increases could add up to £100m to BT’s pension scheme bill.

BT’s decision to start judicial review proceedings follows on from the Treasury committing to provide guaranteed minimum payment (GMP) increases to public sector employees in January this year.

The changes also apply to section B members of the BTPS, as the scheme retains a link to the civil service.

Other private sector schemes won’t be affected as the government scrapped increases to the GMP for state pensions in the private sector in April 2016.

Prospect national secretary Philippa Childs said: “BTPS section scheme members have already been through a huge amount of change and uncertainty regarding the future of their pensions.

“If this action goes forward Prospect will be ensuring that our members’ interests are properly represented and their views fully taken into account by the High Court.”

The hearing is expected to take place in October this year.

More pensions info for members in BT

Philippa Childs has updated members in BT in more detail on three pensions issues:

  • Prospect's reaction to BT's formal sign off this month of the most recent actuarial valuation of the defined benefit BT Pension Scheme (now closed for future accrual). Childs stresses the results are in line with Prospect officials' expectations when negotiating the pension changes members balloted on earlier this year.
  • More detail on who could be impacted by the judicial review proceedings reported on above.
  • BT's appeal on October 9 against January's HIgh Court decision not to allow the company to switch the index for increasing pensions in Section C of the BTPS.

See Update for BT members on pensions issues.