BT 2014 Annual Report Download - page 92

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Governance
Governance
Phil Hodkinson
Who we are
I chair the BT Pensions Committee and on behalf of the committee,
I would like to thank The Rt Hon Patricia Hewitt for her contribution
to the work of the committee over the past six years, the last four aschair.
Our membership and meeting attendance are set out below.
Committee members
Meetings
Member Eligible toattend Attended
Phil Hodkinson (chairman)a43
Sir Michael Rake 4 4
Rt Hon Patricia Hewittb33
Tony Chanmugamc44
Clare Chapmand44
a Phil +odkinson was appointed chairman from 24 March 2014.
b Patricia +ewitt retired as chair on 23 March 2014.
c Tony Chanmugam was appointed to the committee from 1 October 2013.
d Group People Director.
Warren East joined the committee on 1 May 2014.
Further information
Further details about BT’s Retirement benet plans are included in
note 19 to these accounts.
In addition to the work of the
BT Pensions Committee , BT provides
regular updates on BT’s performance and strategy at BT Pension
Scheme (BTPS) Trustee meetings and holds additional sessions with
the Trustee Board.
<ou can Ƭnd details of the BT Pension Scheme at
www.btps.co.uk
BT Pensions Committee Chairman’s report
What we have done
We met four times during the year. The chart below shows how we
allocated our time.
The most signicant workstream this year was our review of pension
scheme risk management activities.
Allocation of time
48%
Risk management
22%
Governance, legal and regulatory
8%
BTPS performance
6%
BTPS administration
16%
Other
Our work fell into ve main areas
Risk management
We received updates on an exercise that commenced in the year giving
pensioners the option to receive a higher pension now in exchange for
lower future pension increases. We reviewed various risk management
strategies in the year and, where appropriate, agreed proposals for risk
reduction activities. We also undertook a review of our risk position,
including considering the extent to which certain scheme risks
(eglongevity) were naturally hedged by BT’s business model.
Governance, legal and regulatory
We received reports on the approach being taken to meet our
requirements under new auto enrolment legislation. In addition,
weconsidered other legal, regulatory and policy developments
such asthe European Commission’s review of the current Pensions
Directive, and dealt with various governance matters including
trusteeappointments.
BTPS performance
We received regular reports on the performance of the BTPS, and
held a joint meeting with the BTPS Trustee Board to discuss the BTPS
performance and investment strategy.
BTPS administration
We received regular reports on the administration of the BTPS during the
year including day-to-day service delivery and progress of a number of
signicant projects carried out by the administrator.
Other
We received reports from management and had discussions on the
funding position and preparation for the 30 June 2014 triennial
fundingvaluation.
Phil Hodkinson
Chairman of the BT Pensions Committee
7 May 2014
Our primary role is to oversee BTos
relationship with the BT Pension Scheme
in{the interests of BT, scheme members,
shareholders and other stakeholders.