NAPF highlights importance of BT pensions calculator change

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NAPF highlights importance of BT pensions calculator change

Fri 5th Nov 2010

The National Association of Pension Funds (NAPF) has described how BT's decision to link its retirement payouts to CPI is significant.

Chief executive of the industry body Joanne Segers noted that it is a "complex issue", but suggested the alteration has allowed the company to leave its pension open to more people.

She explained that it is down to the added flexibility gained from switching that BT can offer individuals on final salary pension schemes the chance to stay with such products.

Ms Segers said: "Many pension funds are grappling with sizeable deficits and a move to CPI can give them some much-needed breathing space."

The NAPF representative admitted that the change from RPI to CPI could sound like a mere technicality, but it is significant and other firms should think carefully about the implications before following BT's lead.

This week, the institution admitted that the government's decision to raise the state retirement age was "inevitable" due to people living longer.

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