BT Group Closes Defined-Benefit Pension Plan
19 March 2018 - 11:59PM
Dow Jones News
By Dimitrios Kontos
BT Group PLC (BT.A.LN) said Monday that it will terminate its
defined-benefit pension plan, having reached an agreement with the
Communication Workers Union on future pension arrangements.
The U.K. telecommunications company said it will close the plan
to future benefits in early summer 2018.
The company will instead establish a "hybrid" plan that combines
elements of both defined-benefit and defined-contribution plans,
and has agreed with the union on the arrangements for 20,000
non-management employees.
Benefits accrued in the pension plan for service prior to June
1, 2018, will remain preserved within it, subject to revaluation
according to rules and relevant legislation, the company said.
The company said it has decided to increase its standard maximum
contribution rate to 10% for employees who joined the company after
2009.
BT said the changes bring more financial certainty for the
company in terms of its future pension arrangements and help it to
balance the needs of pensioners with investments it is making in
the U.K. communications networks.
Shares at 1218 GMT were down 1.85 pence, or 0.8%, at 226
pence.
Write to Dimitrios Kontos at dimitrios.kontos@dowjones.com
(END) Dow Jones Newswires
March 19, 2018 08:44 ET (12:44 GMT)
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