SRC Wealth Management | a Chartered Financial Planning company that provides specialist advice on defined benefit pension transfers

BT defined benefit scheme for managers set to Close


BT is planning to close its defined benefits (DB) scheme to managers and at the same time reduce contributions for front-line staff.  BT's defined benefit pension scheme, one of the largest in the UK with over 300,000 members, has been closed to new entrants since 2001.  The scheme's triennial valuation is due later this year and is expected to show that the deficit has grown to approximately £14bn.  Consultations with unions are ongoing at present with the company threatening to close the DB scheme to future accrual for non-managerial staff if agreement cannot be reached.