BT 2015 Annual Report Download - page 176

174 BT Group plc
Annual Report 2015
5HWLUHPHQWEHQHƬWSODQVFRQWLQXHG
BTPS
t 1 arch 01 there were 000 ebers of the . ebers belon to one of three sections dependin upon the date the first oined
the schee. ection  is for ebers who oined before 1 eceber 191 ection  is for ebers who oined the schee between 1eceber
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 2015
Number
of active
members
Number of
deferred
members
Number of
pensioners
Total
membership
Sections A and Ba15,000 32,000 176,000 223,000
Section C 23,000 40,500 20,000 83,500
7RWDO    
At 31 March 2014
Sections A and Ba17,000 35,500 176,500 229,000
Section C 24,000 41,000 19,000 84,000
7RWDO    
a6HFWLRQ$DQG6HFWLRQ%PHPEHUVKLSVKDYHEHHQDJJUHJDWHGLQWKLVWDEOHDV6HFWLRQ$PHPEHUVKDYHW\SLFDOO\HOHFWHGWRWDNH6HFWLRQ%EHQHƬWVDWUHWLUHPHQW
ince 1 pril 009 when chanes to eber benefits and contribution rates were introduced ection  and  ebers have accrued benefits
based upon a career averae re-valued earnins  basis and a noral pensionable ae of . n a  basis benefits are built up based upon
earnins in each ear and the benefit accrued for each ear is increased b the lower of ination or the individuals actual pa increase in each ear to
retireent. enefits earned for pensionable service prior to 1 pril 009 are based upon a ebers final salar and a noral pensionable ae of 0.
Under the schee rules the deterination of the rate of ination for statutor iniu rates of revaluation and indeation of benefits is based upon
either the etail rices nde  or the onsuer rices nde  which appl to each cateor of eber as shown below.
Active members Deferred members Pensioners
Section Ba enefits accrue on a  basis increasin
at the lower of RPI or the individual’s actual
pay increase
reserved benefits are revalued before
retireent based upon
ncreases in benefits in paent are based
upon CPI
Section C ncreases in benefits in paent are
currently based upon RPI up to a maximum
of 5%
a6HFWLRQ$PHPEHUVKDYHW\SLFDOO\HOHFWHGWRWDNH6HFWLRQ%EHQHƬWVDWUHWLUHPHQW
0DQDJHPHQWRIWKHVFKHPH
 ension chee rustees iited the rustee has been appointed b  as an independent trustee to adinister and anae the schee 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 noinatin four directors to act as representatives of the ebers. fthe reainin four
directors two will norall hold senior positions within the roup and two will norall hold or have held senior positions in coerce or industr.
ubect to there bein an appropriatel ualified candidate at least one of the rustee directors is custoaril a current pensioner or deferred
pensioner of the BTPS. Trustee directors are usually appointed for a three-year term but are then eligible for re-appointment.
BTPS assets
Asset allocation
he allocation of assets between dierent classes of investent is reviewed reularl and is a e factor in the rustees investent polic.
heallocations set reect the rustees views on the appropriate balance to be struc between seein returns and incurrin ris and on the etent to
which the assets should be distributed to match liabilities. Current market conditions and trends are regularly assessed which may lead to adjustments
in the asset allocation. he  also uses financial instruents to balance the asset allocation and to anae ination ris interest rate ris liuidit
risk and foreign currency risk.
Under 19 plan assets ust be valued at the bid aret value at the balance sheet date. or the ain asset cateories
– securities listed on recognised stock exchanges are valued at closing bid prices
– properties are valued on the basis of open market value
– unlisted euities are valued in accordance with nternational rivate uit and enture apital  uidelines
– unlisted fied interest and inde-lined instruents are valued usin the latest aret price or usin discounted cash ow odels that consider
credit risk.