CWU RECOMMENDS PENSION AND PAY DEAL IN BT

PRESS RELEASE

CWU RECOMMENDS PENSION AND PAY DEAL IN BT

The CWU is today (Monday) recommending to members an agreement with BT covering both pension changes and pay for non-managers. The announcement comes after 10 months of talks and follows on from the clear rejection of BT’s previous proposals.

The main features of the proposed legally binding agreement are:

  • BT will establish a new hybrid pension that will include both defined benefit and defined contribution elements and will share future risk with BT. The hybrid pension is due to be set up later this year following further discussions between BT and the CWU.  This will be available to members of the current defined benefit BT Pension Scheme, which will close for future service on 31st

 

  • In the meantime current BTPS members will be opted into the defined contribution BT Retirement Saving Scheme.

 

  • BT will increase company contributions to the defined contribution BTRSS including a standard 10% BT contribution, and an increased minimum BT pension contribution of £2,000 (pro rata for part timers). Key allowances will count towards pensions for the first time.

 

  • A pay rise of at least 3% in April 2018 and 3% in April 2019.

 

  • BTPS members joining either the BTRSS or the new hybrid will be entitled to transitional payments for up to 10 years.

Commenting on the proposed Agreement, which is subject to a membership ballot, CWU deputy general secretary Andy Kerr said:

“Negotiations have taken place against a tough backdrop. The BTPS has a deficit last measured at nearly £14 billion, with future service costs likely to double. As a result BT has been increasingly determined to end defined benefit provision completely.

Against this background, the CWU has secured a defined benefit pension option for current BTPS members as part of the new Hybrid pension. This is an innovative solution that will share future risk between our members and BT.

“In the DC scheme, 70% of our BTRSS members will be getting a 25% increase in company contributions – as well as key allowances counting towards pension for the first time. This is clearly a major improvement.

“We would not have achieved this deal without the wholehearted support of our members who firmly rejected the proposals contained in BT’s original consultation. The proposed agreement significantly improves on BT’s original proposals, secures a defined benefit pension option for BTPS members and enhances the defined contribution pension.

“Taken together with a 6% pay increase over two years, the CWU’s Telecoms & Financial Services Executive firmly believes that the Agreement should be supported.”

 

Notes:

The CWU represents 45,000 non-managerial grades in BT and BT Fleet.