Prospect union members agree BT pension fund changes

Members of the Prospect union working for telecoms firm BT have voted to accept changes to their pension scheme, the union said on Monday.

The telecoms firm had offered a combination of pay rises, extra employer contributions and transitional payments for workers who agreed to move from a final salary scheme into a defined contribution fund.

BT wants to close its final salary scheme to future accruals in order to deal with a fund deficit. It has set up a new Retirement Saving Scheme (BTRSS).

In a statement, Prospect said 60% of its members voted in favour of the changes.

“Members voted to accept the pay offer by 74%, and 60% of members voted to accept BT’s pension proposals. BTPS members voted by 57% to accept the proposals, and BTRSS members voted by 85% to accept,” Prospect said.

“This vote gives us a mandate on which to reach a final agreement with BT. While the margin among those in the BTPS is understandably much closer, members in both schemes have voted to accept the proposals,” said the union's national secretary Philippa Childs.

“We recognise that this has been a difficult and painful decision for those who are currently members of the BTPS.”

“However, the improvements we have negotiated and the transition arrangements will soften the blow for those having to move. Those who are already in the BTRSS, because they joined BT after 2001, will also see improvements."