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BT slashes jobs and ups its pension commitments

In the wake of BT slashing more than 10,000 jobs, it has announced plans to boost its pension scheme.

It says it has reviewed its pension scheme and proposed a range of changes such as raising the age of retirement and increasing employee contributions which could reduce the ongoing cost of the DB pension scheme by around £100m a year.

The changes will reduce pension entitlement for 65,000 members of its final salary scheme that was closed to new joiners in 2001.

It will also mean that the retirement age for scheme members will rise to 65 from 60. In addition future pension entitlement will accumulate at a slower rate and the traditional link between final salaries and pension payments will be broken. Some members will have to pay higher contributions.


Fair grounds

Satisfying the FSA over its TCF requirements begins with training staff and then ensuring the principles filter down into everyday business, say Morse management consultants Mark Lester and Karen Bond.

Broker Talkback

Is the UK Government right to be taking “a long hard look” at the relationship between itself and the Isle of Man?
Yes 25%
No 75%

Paul McMahon

It has been four years in the planning but this week sees the formal launch of the Elevate wrap under the stewardship of Axa Distribution Services managing director Paul McMahon.


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