05 November 2010
The BT Pension Scheme is expected to reduce its pension
liabilities by £2.9bn (under the IAS19 accounting rules) as a
consequence of the reforms introduced by the government on pension
increases.
The reforms, announced in July, change the inflation table on
which pension benefits are calculated. Previously the pension
scheme applied changes in the Retail Prices Index (RPI) to pension
benefits but will now use changes in the Consumer Prices Index
(CPI).
As the BT Pension Scheme is a former public sector scheme, the
ruling will automatically be applied.
BT Said:
"This change has been triggered by the Government's announcement
in July and it will be applied from April next year. It was
important that we brought clarity on this matter to the scheme's
members as quickly as possible."
