BT to seek the advice of 65,000 workers over future modifications to pension schemes to sort out £9billion black gap — together with elevating the retirement age
BT is to begin consulting as much as 64,500 workers about attainable modifications to its two pension schemes.
Chief exec Gavin Patterson mentioned talks would happen inside weeks.
Choices into consideration embody elevating the retirement age in alternate for future advantages and shutting the expensive closing wage scheme to the accrual of future advantages.
This scheme, with greater than 32,000 lively members, was £9billion in deficit on the final valuation three years in the past, with the following due early subsequent yr.
The telecoms big can be searching for to alter the inflation measure it makes use of to calculate pension funds — serving to save as much as £2billion.
The proposal is topic to a courtroom listening to in December.
The agency’s newer outlined contribution scheme, the place efficiency is linked to the inventory market moderately than to salaries, can be below examination. It additionally has greater than 32,000 members.
Mr Patterson mentioned he can be searching for an final result that balanced “affordability and equity”.
He mentioned he wished to make sure that “not one group was handled unfairly”.
However the radical plans may set him on a collision course with unions.
BT revealed a 4 per cent drop in earnings to £1.8billion within the three months to the top of September as a consequence of heavy funding in sports activities rights and ongoing woes in its world companies arm.
World companies, which has been dogged by an accounting scandal in Italy, noticed earnings tumble by 39 per cent to £81million within the second quarter.
Regardless of this, Mr Patterson mentioned that it had been a “stable quarter” in step with expectations.