British Telecom is to start searching for an active fund manager for its UK based new defined contribution scheme and hopes to have one in place by the end of September.
According to Colin Hartridge-Price BT's scheme secretary and chief pensions officer, the new scheme should have £20m ($m) by the end of the year. Trustees are currently looking for a manager to offer unitised funds in equities. The fund is preparing an advert for asset managers, which will be released as soon as it is ready.
Hartridge-Price also revealed that Bacon & Woodrow had been hired to act as consultants to the new fund and that they will work alongside with Hermes Investment Management. Watson Wyatt are consultants to BT's £27bn defined benefit scheme and Hartridge-Price said that Watson Wyatt were not considered for the new scheme.
It is no reflection on Watson Wyatt, he said. We just thought that it would be best to keep the advisors separate.
Earlier this month, BT launched the new DC plan and closed its final salary scheme to new employees.
Redundancy strains last year and increased levels of contributions to the DB scheme - including a one off special contribution of £200m BT made to the fund - has left the final salary scheme with a £650m liability.
By Geoffrey Ho
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