UK - British Telecom is considering changing its compulsory retirement age ahead of government legislation to give people the right to work longer.
BT currently has a compul-sory retirement age of 60.
But chairman Sir Christopher Bland told shareholders at the annual general meeting that he receives “a lot of emails from people retiring at 60 who say they still have a lot to give the company”.
The department of trade and industry released a consultation paper earlier this month that prescribed a default retirement age of 70 in the UK – a move which would bring legislation in line with the EC’s employment directive.
Last month, BT revealed that its £26.6bn final salary pension scheme had the UK’s largest FRS17 deficit at £5.7bn.
But Watson Wyatt partner Roger Key warned that simply changing the retirement age would not necessarily reduce the deficit.
“It would not be expected to be a quick fix for a deficit at all, but it would normally reduce future costs,” he said.
Key explained that the eff-ects on the scheme depended on whether staff were given a similar benefit or an increased benefit to take account of later retirement.
An innovative funding structure has been agreed for Croydon Pension Fund. However, there are some concerns about the arrangement. Stephanie Baxter reports
Some 52% of red flags raised by schemes on suspected scam pension transfers involve advisers or unregulated introducers, a report by the Pension Scams Industry Group (PSIG) has claimed.
The Norfolk Pension Fund has been successful as the lead plaintiff in a class action case that went to jury trial in California involving securities fraud.
In this week's Pensions Buzz, we want to know whether bosses should have to pay into the same staff DB scheme as their workers rather than their own executive pension fund.