The BT Retirement Plan
The BT Retirement Plan (BTRP) was set up when Section C was closed, opening to new members on 1 April 2001 before closing on 31 March 2009. It was a defined contribution (DC) scheme.
Members of the scheme could choose to pay contributions of a minimum of 4% and as much as 10% of their salary, with BT matching that level of contribution. So, if the member pays 4%, BT will pay 4%; if the individual pays 7%, BT pays 7%; and so on up to a maximum of 10%. The individual can pay contributions or more than 10%, but BT will only match up to 10%. However, the great majority of BTRP members paid the minimum default contribution of 4%, matched by 4% from BT.
By comparison, BT was making much higher employer contribution into the BTPS and, in addition, substantial lump sums to clear the scheme's deficit. BT therefore saved a great deal of money on BTRP members in comparison to BTPS members.
The BTRP provided limited pension protection for those who died in service and minimal protection to those forced to retire due to ill health during their working life with BT.