BT 2013 Annual Report Download - page 77

Governance
Governance 75
Governance
Governance 75
“We are responsible to the
Board for overseeing BT’s
relationship with the Trustee of
the BT Pension Scheme, in the
interests of pension scheme
members themselves, as well
as our shareholders, employees
and other stakeholders.”
Our work fell into seven main areas:
Governance, legal and regulatory
We considered legal, regulatory and policy
developments and their impact on the BTPS
and the company, and dealt with various
governance matters including Trustee
appointments.
Investment strategy review
We received regular reports and had frequent
discussions on the progress of a review of
investment strategy that has been discussed
with the BTPS Trustee during the year and
was concluded in April 2013. We believe this
investment strategy provides an appropriate
balance of risk and return.
BTPS performance
We received regular reports on the
performance of the BTPS, and held two joint
meetings with the BTPS Trustee Board in
2012/13 to discuss the BTPS performance,
investment strategy and any proposed
changes.
Risk management
We reviewed various risk management
strategies in the year and agreed, where we felt
it was appropriate, proposals for pensions risk
reduction activities.
BTPS administration
We received regular reports on the progress
of a number of projects which had significant
impact on the administration of the BTPS
during the year.
Global pensions benefits
We regularly considered reports from executive
management on policy and strategy matters
which were significant to BT pension and
benefit schemes other than the BTPS.
BT strategy
We have provided information to the BTPS
Trustee, both at joint meetings and in further
separate sessions, to help keep the Trustee
better informed about BT’s strategy and
business in a number of key areas.
Rt Hon Patricia Hewitt
Chair of the BT Pensions Committee
9 May 2013
BT Pensions Committee Chair’s report
Our role
You can view our terms of reference
on our website at
www.bt.com/committees
Our activities are principally focused on
oversight of the BT Pension Scheme (BTPS).
We get input and recommendations from
executive management, and are responsible
for: considering pension policy and strategy
matters that are significant to the group;
discussing the BTPS investment strategy;
monitoring its performance; and reviewing and
approving BT’s risk management activities in
relation to the BTPS.
We report and make recommendations to the
Board on:
— items of strategic importance to BT
— matters involving a financial impact of
over£100m
— the BTPS triennial funding valuation and
associated recovery plan
— strategic changes to benefits that require
rule changes or changes to the BTPS Trust
Deed and Rules.
What we have done
We met six times during the year. The chart
below shows how we allocated our time.
This year a review of the investment strategy
replaced the 2011 Triennial Valuation as a
significant workstream.
Allocation of time
Governance, legal
and regulatory 25% Global pensions
benefits 7%
Investment strategy
review 23% BT strategy 6%
BTPS administration 7%
Risk management 11% Other 7%
BTPS performance 14%
Who we are
I chair the BT Pensions Committee . Our
membership and meeting attendance are set
out below.
Committee members
Meetings
Member
Eligible
to attend Attended
Rt Hon Patricia
Hewitt (Chair) 6 4
Sir Michael Rake 6 4
Phil Hodkinson 6 5
Ian Livingston 6 6
Clare Chapmana63
a Group People Director.
Rt Hon Patricia Hewitt