BT Group to Close Benefit Pension Plan for 10,000 Managers

   By Adria Calatayud 
 

BT Group PLC (BT.A.LN) said Monday that it has reached an agreement to close its pension plan for the future build up of benefits for 10,000 managers, and to move them to a contribution scheme.

The British telecommunications company said it is still in discussions with the Communication Workers Union regarding the 20,000 employees other than managers who benefit from the pension plan.

For 12,500 managers under the company's retirement saving plan, BT has agreed to increase its contribution rates up to a maximum of 10% of pensionable salary.

The company said it intends to implement the changes on June 1.

For the 10,000 managers under the pension plan, BT will close the scheme on May 31, it said. From June 1 onward, pension contributions will go into new individual accounts in BT's retirement saving plan, it said.

All benefits accrued in the pension plan prior to June 1 are protected, the company said.

BT's retirement saving plan--a contribution plan--has been the company's primary pension plan since 2009, it said. BT's pension plan--which is a benefit scheme--was closed to new joiners in 2001, the company said.

Write to Adria Calatayud at [e-mail]

(END) Dow Jones Newswires

February 05, 2018 09:20 ET (14:20 GMT)

Copyright (c) 2018 Dow Jones & Company, Inc.