Pensioners-and-dependant-2023 – Your BTPS Member Newsletter

Viridor diverts 320,000 tonnes of non-recyclable household waste from landfill and uses it to generate enough electricity to power 84,000 homes a year.

Boosting your State Pension with voluntary NI contributions

Find out more at
‍gov.uk/check-state-pension

News in brief

GMP equalisation

In our last newsletter, we told you we were reviewing members’ Guaranteed Minimum Pension (GMP) in light of a legal change. GMP is a minimum level of pension built up between April 1978 and April 1997, to ensure members didn’t lose out when BTPS contracted-out of the additional State Pension.

The legal change applies to GMP built up between 1990 and 1997. The rules for how GMP built up were based on the way the State Pension worked at that time, which was different for men and women. We are carrying out checks to ensure GMP is ‘equalised’ for men and women within the Scheme.

If you’re affected, we’ll be in touch to let you know. In reality, only a relatively small proportion of Section C members will be impacted, and the amounts involved are likely to be very small. Members of Section A and B are not affected. There’s nothing you need to do while we carry out our checks. We will update those directly affected as soon as we can.

Lifetime Allowance

If you have other pensions (excluding BTPS and the State Pension) that you have not started drawing on yet, then you might like to know about changes the government made to the Lifetime Allowance (LTA) in this year’s Budget Statement.

The LTA was previously the limit on the total value of pension savings you could build up through your lifetime without triggering an extra charge of up to 55% (known as the lifetime allowance charge). The LTA is currently £1,073,100 for most people. Since 6 April 2023, however, anyone breaching the current LTA when starting to take money from their pension will no longer face a lifetime allowance charge, although there will still be income tax to pay at your marginal rate. The government also intends to remove the Lifetime Allowance completely in future. The government has also frozen the amount of maximum tax-free lump sum that can be paid (from all your pensions combined) to 25% of the current LTA, which means a maximum of £268,275.

You can find out more about the Lifetime Allowance at moneyhelper.org.uk

We have recently carried out a second longevity swap with Reinsurance Group of America. Our Privacy Notice has been updated to reflect this new relationship. Copies of the updated Privacy Notice can be found online at btps.co.uk/PrivacyNotice.

This newsletter is for information purposes only and does not constitute advice. Where appropriate, individuals should seek professional advice before making decisions relating to their pension. Your BTPS benefits are always subject to the BTPS Rules and relevant legislation. If there’s any difference between the description of benefits in this document and the BTPS Rules or legislation, the BTPS Rules and legislation will take precedence.

How we use your personal information:
BT Pension Scheme Administration Ltd, on behalf of the Trustee, will process personal data relating to you, and to any person whose personal data is provided in connection with potential benefits, in order to administer the Pension Scheme. For more information on how we process your personal data and what your individual rights are under the UK General Data Protection Regulation (‘UK GDPR’) and Data Protection Act 2018 (‘DPA 2018’), please read our latest Privacy Notice at btps.co.uk/PrivacyNotice or write to BTPS, Sunderland SR43 4AD.

Spotlight on 2023

Member visit: Viridor

What goes on at Viridor, Avonmouth?

Why does BTPS invest here?

What does it matter where the scheme invests?

Help going digital

BT Benevolent Fund

Cost of living support – are you eligible for Pension Credit?

Boosting your State Pension with voluntary NI contributions

Why is my NI record important?

How do I check if I have gaps in my record?

Check your National Insurance record online.

Please be aware that employers generally only hold NI information for the previous six years.

News in brief

GMP equalisation

Lifetime Allowance

You can find out more about the Lifetime Allowance at moneyhelper.org.uk

Satisfaction Survey

2023 Member Survey - Year-on-year results

Keep in touch