BT cuts final salary pension link

[pickaname]

CWU agreed to this...not much hope for us then.

From BBC

BT is proposing radical changes to its main pension scheme to save money.

It wants to cut the traditional link with final salaries, to raise the retirement age to 65, and to build up pension entitlement at a slower rate.

The changes for 65,000 staff in the group's final salary scheme will come into effect for pensions earned after April 2009.

BT needs to rein in the costs of running the scheme as it was last reported to have a deficit of £600m.

"Even though BT has made more than £2.5bn in top-up payments to maintain the scheme over the last 10 years, we need to take further action to sustain it in the long-term," BT said.

Among the factors driving up the long-term cost of the scheme, it pointed to the fact that people were living longer in retirement and that future investment returns are expected to be lower.

Hard fight

BT currently pays in the equivalent of 19.5% of its workers' pensionable salaries into their final salary scheme.

It would not reveal by how much its planned changes would cut the overall contribution rate, or how much money it would save, until it releases its half-year results later this week.

However, 20,000 staff in its separate defined contribution schemes are being offered higher company contributions.

After negotiations which began in May, BT has won support for the pension changes from its main trade union, the Communication Workers Union (CWU).

Andy Kerr, the CWU deputy general secretary, said it had "fought hard" to negotiate a good deal for its members.

"We have secured an agreement to ensure the future sustainability of the BT pension scheme and keep it open for future service while improving BT's contributions for the defined contribution pension members," he said.

"In the BT pension scheme we have ensured that service before April 2009 remains linked to final salary, that the retirement age rise is phased in, and that contribution rates are in future linked to income levels," he added.

[dvbuk55]

It was on the CWU website - another sell out and a real indication of the bullsh*t surrounding the so called campaign to address the pensions issue.

[BELIAL]

F***ing Nora ,I thought the point of a union was to protect and improve it's members terms,not to manage their reduction in a nice controlled "race to the bottom".
How long before we get a union campaign for big pay cuts to ensure the long term viability of the business?

[pickaname]

Dont put ideas into their heads for gawds sake!

[dvbuk55]

F***ing Nora ,I thought the point of a union was to protect and improve it's members terms,not to manage their reduction in a nice controlled "race to the bottom".

Been saying just that for ages!

How long before we get a union campaign for big pay cuts to ensure the long term viability of the business?

Thats what we have with BH and DW! Oh and as an aside i have been saying that for ages too!

We are not worthy

[k979aaa]

It seam's the goal post's are changeing and with this man in charge :mfo they will in royalmail and for the rest of time if we and our union don't get our act together and become united in a cause the cause of fighting for what is right for all member's of our union it is not the time to give in it is the time we one and all arise to the situaton we now find ourself's in now!. It is time the union H/Q realised and demanded the expectaion's of the members of the CWU and not sweeped them under the carpet of goodwill. FOR ALL THE NICE WORDS WILL NOT PROVIDE A LIVEING WAGE AFTER THE TEA AND BUN'S HAVE BEEN EATEN!. Is now not the time for all the CWU to UNITE in ONE cause as we were one union once and shall be again!. I FIND IT HARD TO BELIVE THE TOP OF ROYALMAIL :cfo & :lfo AND BRITISH TELECOMM ( insert here ) WILL BE ANY THE WORSE OFF!. NOW IS OUR TIME TO MAKE OUR STRIKE FOR JUSTICE AND EQUALITY AND UNITY AS ONE!.

[dvbuk55]

Brave words indeed - totally wasted of course - how many times in the last year - and it has been a year since the proposal was put forward, have people on this website said the cut in pension was a done deal? Despite all HQs bluster and protestations there is no going back. The union is in existence for its own sake and not for ours - of course we don't see the big picture - which is true; what we see is the never ending increase in workload for no reward, a denigration of our working conditions, pensions and increase in our working life. It must be easy to commit someone to walking the streets in all weathers for another five years when you are sat on your ar*e in London. The Tolpuddle Martyrs would turn in their grave to see what trade unionism has become in this day and age.

Formation of Unions

The six Tolpuddle Martyrs were all farm labourers, paid 9 shillings a week and lived in dreadful poverty.

Their leader George Loveless, decided to set up a Union in Tolpuddle to give the labourers bargaining strength.

The landowners, led by James Frampton and supported by the government, were determined to squash unions and to control increasing outbreaks of dissent.

No need to squash us now, - we are in collusion.

[BELIAL]

Maybe we need a union to act on our collective behalf when dealing with the CWU?

[dvbuk55]

Maybe we need a union to act on our collective behalf when dealing with the CWU?

Now there's a thought. Some organisation that is neither politically motivated nor populated by people waiting to leap on the gravy train - visions of Shangri La I'm afraid B. "Let's not rock the boat in case it affects my ambition" - I feel more and more like a mushroom these days, and it's being shovelled on from all directions.

[Night Tonic]

We can only win, and so forth

[baldrick]

We can only win, and so forth

Translation from RMspeak:
We can only lose, and so forth.
So let's do nothing ?

[BELIAL]

I'm afraid Night tonic is long defeated ,a lost soul without hope or aspirations.I wish him well as he sinks into turbid decay

[baldrick]

I'm afraid Night tonic is long defeated ,a lost soul without hope or aspirations.I wish him well as he sinks into turbid decay

And a long and happy retirement (at least HIS pension won't be affected).

[BELIAL]

Maybe we need a union to act on our collective behalf when dealing with the CWU?

Now there's a thought. Some organisation that is neither politically motivated nor populated by people waiting to leap on the gravy train - visions of Shangri La I'm afraid B. "Let's not rock the boat in case it affects my ambition" - I feel more and more like a mushroom these days, and it's being shovelled on from all directions.

Ah DVB open your mind, only 6 months ago we were told £2billion to rescue our pension was pie in the sky, utopian thinking, that money just does not exist, get real.
Here we stand ,6 months later and 300 x that amount has been handed over to Eton and Harrow old boys without a blink of an eyelid.
Perhaps reality is relative? Nah thats a physical and philosophical impossibility

[dvbuk55]

Maybe we need a union to act on our collective behalf when dealing with the CWU?

Now there's a thought. Some organisation that is neither politically motivated nor populated by people waiting to leap on the gravy train - visions of Shangri La I'm afraid B. "Let's not rock the boat in case it affects my ambition" - I feel more and more like a mushroom these days, and it's being shovelled on from all directions.

Ah DVB open your mind, only 6 months ago we were told £2billion to rescue our pension was pie in the sky, utopian thinking, that money just does not exist, get real.
Here we stand ,6 months later and 300 x that amount has been handed over to Eton and Harrow old boys without a blink of an eyelid.
Perhaps reality is relative? Nah thats a physical and philosophical impossibility

So bloody true B, if only I could come up with a plausible crisis, so that Gordy would flash the cash my way, the way this recession is looking I'm going to have to hire myself out as a Gigolo - that should bring in oh I don't, 10p a week - having said that I don't actually know anyone that desperate