BT 2014 Annual Report Download - page 157

154 Financial statements
19. Retirement beneƬt plans continued
BTPS
At 31 March 2014 there were 313,000 members of the BTPS. Members belong to one of three sections depending upon the date they rst joined
the scheme. Section A is for members who joined before 1 December 1971, Section B is for members who joined the scheme between 1December
1971 and 31 March 1986 and Section C is for members who joined the scheme on or after 1 April 1986 but before the scheme closed to new
entrants on 31 March 2001. The membership is analysed below.
At 31 March 2014
Number
of active
members
Number of
deferred
members
Number of
pensioners
Total
membership
Sections A and Ba17,000 35,500 176,500 229,000
Section C 24,000 41,000 19,000 84,000
Total 41,000 76,500 195,500 313,000
At 31 March 2013
Sections A and Ba19,000 39,000 175,000 233,000
Section C 25,000 41,500 18,000 84,500
Total 44,000 80,500 193,000 317,500
a Section A and Section B memberships have been aggregated in this table as Section A members have typically elected to take Section B beneƬts at retirement.
Since 1 April 2009, when changes to member benets and contribution rates were introduced, BTPS members have accrued benets based upon
a career average re-valued earnings (CARE) basis and a normal pensionable age of 65. On a CARE basis benets are built up based upon earnings in
each year and the benet accrued for each year is increased by the lower of ination or the individual’s actual pay increase in each year to retirement.
Benets earned for pensionable service prior to 1 April 2009 are based upon a member’s nal salary and a normal pensionable age of 60. Under the
scheme rules the determination of the rate of ination for statutory minimum rates of revaluation and indexation of benets is based upon either the
Retail Prices Index (RPI) or the Consumer Prices Index (CPI) which apply to each category of member as shown below.
Active members Deferred members Pensioners
Section Ba Benets accrue on a CARE
basis increasing at the lower
of RPI or the individual’s
actual pay increase
Preserved benets are revalued
before retirement based
uponCPI
Increases in benets in
payment are based upon CPI
Section C Increases in benets in
payment are based upon RPI
up to a maximum of 5%
a Section A members have typically elected to take Section B beneƬts at retirement.
Management of the scheme
BT Pension Scheme Trustees Limited (the Trustee) has been appointed by BT as an independent Trustee to administer and manage the scheme on
behalf of the members in accordance with the terms of the Trust Deed of the scheme and relevant legislation. Under the terms of the Trust Deed
there are nine Trustee directors all of whom are appointed by BT. The chairman of the Trustee is appointed after consultation with, and with the
agreement of, the relevant trade unions who are also responsible for nominating four directors to act as representatives of the members. Ofthe
remaining four directors, two will normally hold senior positions within the group, and two will normally hold (or have held) senior positions in
commerce or industry. Subject to there being an appropriately qualied candidate at least one of the Trustee directors should be a current pensioner
or deferred pensioner of the BTPS. Trustee directors are appointed for a three-year term, but are then eligible for re-appointment.