If you have recently joined BT, you will be automatically enrolled into the BTRSS with a default payment of 5% of your Pensionable Salary. BT will make a payment of 7% into your plan as shown in the table below or you can read more about this in the The BT Retirement Saving Scheme booklet.
You can change your default payment if you wish, but to receive a payment from BT, you will need to make a minimum payment of at least 4%. Payment levels have been set by BT and are shown in the table below:
If you are currently a member of the BTRP or SLFPP and join the BTRSS, from 1 April 2009 BT will continue to make payments to your pension savings at the same rate as they pay to your current scheme, unless under the new structure you are entitled to a higher employer payment from BT.
You can change your payment levels, however if you reduce the amount you pay, your matching payment from BT may also be reduced. For further information on this, please see the BT Retirement Saving Scheme guide.
If you are participating in SMART Pensions, please read the information on the SMART Pensions page to see how this may affect you.
What you pay |
What BT will pay |
What BT will pay |
4% |
5% |
6% |
5% |
7% |
8% |
6% |
7.5% |
8.5% |
7% |
8% |
9% |
8% |
8% |
9% |
9% and above |
8% |
9% |
If you pay at least 5% of your Pensionable Salary into the BTRSS, BT guarantees a minimum employer payment of £1,250 each year from 1 April 2009, rising to £1,500 from 1 April 2010. These minimum payments will be applied pro-rata for part-time employees or people who leave during the year. This underpin will apply if your annual Pensionable Salary is less than £17,857 in the 12 month period 1 April 2009 – 31 March 2010, or £18,750 thereafter.
You can pay more if you wish in order to receive higher payments from BT, but you should understand that the maximum that you can pay will be subject to HM Revenue & Customs limits. The maximum that BT will pay into the scheme (8% until 1 April 2010 and 9% thereafter) is shown in the table above and this will not increase if, for example, you decide to pay more than 10%.
With effect from 6 April 2011, some higher-rate taxpayers may stop being eligible to receive extra tax relief. They may also suffer a tax penalty if they try to increase payments they make to their pension before this date. For further information, please download the Tax changes to pension plans announced in the 2009 budget factsheet, or seek financial advice. There may be a cost associated with receiving this advice.
Please see the Key Features Document for information about the minimum and maximum amounts that can be paid to the plan.
If you have any questions on the payment levels please speak to your employer or see the BT Retirement Saving Scheme guide.
