BT has avoided the potential threat of industrial action by agreeing a deal with its main union to close its defined benefit pension scheme.
The telecoms giant said in November it planned to close the DB scheme as part of its plans to get to grips with its £14bn pension deficit, an offer the Communication Workers Union urged its members to reject.
According to the Financial Times, BT revised its initial proposal on Monday and is now looking to design a “hybrid” scheme that will keep some parts of the old scheme.
The hybrid scheme will be voluntary to join, with members contributing 6.24 per cent of their salaries.
BT chief executive Gavin Patterson says: “These changes also bring far more financial certainty for the company in terms of our future pension arrangements.”
He says: “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.”