LTB 138/19 – BT Hybrid Pension: Joining Process Begins

No.138/2019

6th March 2019

TO ALL BRANCHES WITH BT MEMBERS

 

Dear Colleague

BT Hybrid Pension: Joining Process Begins

The BT Hybrid Pension (BTHS) will begin on 1st April. Those in scope can register to join from today. Those eligible to join have until the end of September to make a decision.

Establishing the BT Hybrid Scheme, which will be a completely new pension in BT, was a major part of the 2018 Pension Agreement.

The BTHS will be open to around 19,000 team members in BT, Openreach and BT Fleet who were active members of the BT Pension Scheme (BTPS) when it closed to future service earlier in the year and still work for one of the three participating companies on 1st April 2019.

The BTHS pension combines both defined benefit pension – like the BTPS – and defined contribution benefits like the BT Retirement Savings Scheme (BTRSS).

BT is communicating to all those eligible today, and an example of the emails is attached.

Joining the BT Hybrid Scheme

Those that do register will join the BTHS from the first day of the next calendar month after they submit their selection. So, the earliest date someone can become a member will be 1st April 2019 and the last date will be 1st October 2019.

Members will need to decide individually whether or not to join the BTHS based on their own personal circumstances. If members do not join the BTHS then their existing pension arrangements will not change as a result of the BTHS launch.

This is an important decision and members are encouraged to read the BT documentation and consider relevant factors including the following.

  • The benefits already built up under the BTPS and any other existing pension benefits.
  • Your attitude towards investment risk.
  • Would you prefer additional defined benefits and increased certainty about benefits in retirement or more flexibility?
  • Would you like your pension to be protected against inflation?
  • What are your future salary/promotion expectations?
  • When do you intend to take your pensions?
  • How long are you likely to continue saving in either the BTRSS or BT Hybrid Scheme?
  • How long might you expect to live and do you have dependents you want to provide for after death?

Support Available

Individuals have an important decision to take about their future pension provision and BT is putting in place extensive support arrangements to assist members in the coming months.

a) A booklet called “Time to choose: A comparison guide to your pension options” which compares the BTHS and the BTRSS was sent to home addresses last November.

b) An online modeller that compares the BTHS and BTRSS under different scenarios is available. Members have been sent individual benefit data for use with the modeller.

c) The draft BTHS Scheme booklet which is available on line.

d) A series of seminars, webinars and conference calls.

e) A Question and Answer document.

The CWU believes that having access to a modeller, as mentioned above, is essential and very helpful, to assist members to make an informed decision. However, it is important to stress that this type of modeller does not provide a guaranteed statement of pension benefits. It is a tool which generates the output data based on assumptions provided by the Company to allow for comparison between the BTHS and the BTRSS under certain scenarios. The modeller is not a substitute for independent financial advice.

Member Queries and Financial Advice

Members who have questions about their options linked to the BTHS should contact Wealth at Work in the first instance. Wealth at Work can be contacted via 0800 083 5056 or email: bt-hybridpension@wealthatwork.co.uk

Please note that the CWU is legally prohibited from giving financial advice. If members are unsure which pension option to take then they are strongly advised to take independent financial advice.

All CWU members are entitled to a no obligation initial financial consultation with Lighthouse Financial Advice. Further information on this option is available on the CWU web site at www.cwu.org/my-union/member-benefits/ – sign in to the CWU site is required to access the page.

Yours sincerely

 

Nigel Cotgrove

Assistant Secretary

138.2019

 

BTRSS version

Email subject: Window to join the BT Hybrid Scheme opens; it’s time to choose

From: Kerry Shiels, pensions head of rewards

To: All team members who joined the BTRSS from the BTPS on 1 July 2018 and remain employed within BT Group by BT plc, Openreach Limited or BT Fleet Limited

Status: For action

Dear <<first name>>

We’ve now opened the window for joining the new BT Hybrid Scheme and, so long as you remain a team member employed within the BT Group by BT plc, Openreach Limited or BT Fleet Limited, your option to join will remain open right up until 30 September 2019.

This is an important financial decision and there’s a lot to think about before you make your choice. If you haven’t already done so, why not book an education session or a one to one guidance call?

You’ll also find a range of other support and information at snip.bt.com/hybrid including answers to FAQs, the comparison modeller, a copy of our comparison guide and the draft BT Hybrid Scheme booklet.

If you decide to join the BT Hybrid Scheme, you’ll need to let us know that you wish to opt out of the BT Retirement Saving Scheme (BTRSS) and opt in to the BT Hybrid Scheme by using Your Rewards. Full instructions are available on the Hybrid intranet site.

We’ll put you in the BT Hybrid Scheme from the first day of the next calendar month after you submit your selection. So, the earliest date you can become a member will be 1 April 2019 and the last date will be 1 October 2019.

A few weeks after you’ve joined the BT Hybrid Scheme, you’ll receive a certificate from the scheme administrator at your home address. This will set out your plan numbers and details of how to register for the BT Hybrid Scheme portal. People joining on 1 April 2019 will receive the certificate towards the end of April.

Some final points to remember:

  • If you want to stay in the BTRSS, you don’t need to take any action.
  • You’re able to tell us that you want to opt out of the BTRSS and opt into the BT Hybrid Scheme at the same time. This will mean that there’s no gap in your pension scheme membership.
  • If you don’t submit your request to join the BT Hybrid Scheme on Your Rewards by 30 September 2019, you won’t be able to join it at a later date.

If you’ve got any questions or concerns, you can call the helpdesk on 0800 083 5056 or email bt-hybridpension@wealthatwork.co.uk.

Regards,

Kerry