BT 2012 Annual Report Download - page 77

74 Governance
BTPS performance
We received regular reports on the
performance of the BTPS and held two joint
meetings with the BTPS Trustee board in 2012
to discuss the BTPS performance, investment
strategy and any proposed changes.
Risk management
We considered and agreed, where appropriate,
proposals for pensions risk reduction activities.
We have reviewed various risk management
strategies in the year and agreed that any
exercises providing additional options to
members must include transparent, clear and
comprehensive communications.
Global pensions benefits
We regularly considered reports from the
executive management group on policy and
strategy matters significant to the BT group in
relation to all BT pension and benefit schemes
other than the BTPS.
Crown Guarantee
We received regular reports, agreed the
approach to and monitored progress of the
Crown Guarantee case which was heard in the
High Court during the year.
Rt Hon Patricia Hewitt
Chair of the BT Pensions Committee
9 May 2012
BT Pensions Committee Chair’s report
Our role
The Committee’s terms of reference
are available on our website at
www.bt.com/committees
Our activities are principally focused on
oversight of the BT Pension Scheme (BTPS).
With input and recommendations from
executive management, we are responsible
for: reviewing and approving BT’s risk
management activities in relation to the
BTPS; monitoring performance of the BTPS;
discussing the BTPS investment strategy, and
considering matters of policy and strategy
concerning pensions that are significant to
thegroup.
Rt Hon Patricia Hewitt
We also report and make recommendations to
the Board on:
 matters which we consider are of strategic
importance to BT
 matters involving a significant
financial impact of over £100m (in
accordance with the key policies of BT’s
GovernanceFramework)
 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 five times in 2012 and the chart below
shows how we allocated our time.
Allocation of time
6%
35%
24%
15%
8%
12%
Triennial valuation
BTPS performance
Risk management
Other matters
Global pensions
benefits
Crown Guarantee
Our work fell into five main areas:
Triennial valuation
We received regular reports on the progress
of the triennial funding valuation process
and Trustee negotiations. We recommended
the approach to the 2011 triennial funding
valuation and recovery plan for final
agreement by the Board. The Committee
endorsed the proposal to move the date for
triennial valuations from 31December to
30June with effect from June2011, enabling
the Trustee and BT to complete the valuation
within BT's financial year. We believe that the
agreement reached between the company
and the Trustee is good for BTPS members,
our investors and other stakeholders. This was
a significant workstream in the year and the
valuation results are discussed in more detail
on page 58.
Who we are
I chair the BT Pensions Committee , and the
membership of the Committee and attendance
at meetings is set out below:
Committee members
Meetings
Member
Eligible
to attend Attended
Rt Hon Patricia
Hewitt (Chair) 5 5
Sir Michael Rake 5 4
Phil Hodkinson 5 5
Ian Livingston 5 4
Alex Wilsona10
Clare Chapmanb44
a Alex Wilson retired from the Committee on
31October2011.
b Clare Chapman joined the Committee on
1January2012.
Reports of the Board Committees
Overview
BusinessStrategy
Performance
Governance
Financial statements
Additional information Overview
BusinessStrategy
Performance
Governance
Financial statements
Additional information