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BT gets union approval to close defined pension scheme
BT Group will close its defined benefits pension scheme after reaching an agreement with the Communication Workers Union (CWU) on Monday to secure pension arrangements for 20,000 employees.
The former state telecoms monopoly's defined benefits scheme, known as the BT Pension Scheme (BTPS), will be closed to future benefits from the planned date of 31 May conditional on the resolution of administrative issues.
BT will collaborate with CWU to establish a hybrid pension arrangement for team members who leave the scheme, which will seek to combine defined benefit and defined contribution schemes.
The company's defined contribution scheme, the BT Retirement Saving Scheme, currently caters to approximately 35,000 employees.
Gavin Peterson, the group's chief executive, said: "I feel it's critical that we provide fair, flexible and affordable pensions for all our people. I'm committed to helping them save for retirement, so I'm pleased we've reached an agreement with our unions."
"These changes bring far more financial certainty for the company in terms of our future pension arrangements. This will help us balance the needs of BT pensioners with the investments we are making to future-proof the UK's communications networks and improve customer experience," said Peterson.
As of 1429 GMT, BT Group's shares were down 1.29% at 224.90p.
The former state telecoms monopoly's defined benefits scheme, known as the BT Pension Scheme (BTPS), will be closed to future benefits from the planned date of 31 May conditional on the resolution of administrative issues.
BT will collaborate with CWU to establish a hybrid pension arrangement for team members who leave the scheme, which will seek to combine defined benefit and defined contribution schemes.
The company's defined contribution scheme, the BT Retirement Saving Scheme, currently caters to approximately 35,000 employees.
Gavin Peterson, the group's chief executive, said: "I feel it's critical that we provide fair, flexible and affordable pensions for all our people. I'm committed to helping them save for retirement, so I'm pleased we've reached an agreement with our unions."
"These changes bring far more financial certainty for the company in terms of our future pension arrangements. This will help us balance the needs of BT pensioners with the investments we are making to future-proof the UK's communications networks and improve customer experience," said Peterson.
As of 1429 GMT, BT Group's shares were down 1.29% at 224.90p.
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