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BTPS 2012 Commutation Factors

30 October 2012

Following the completion of the 2011 actuarial valuation earlier this year the Trustee of the BT Pension Scheme (BTPS) has now completed a review of actuarial factors used to administer the Scheme. These include commutation rates, early and late retirement factors, transfer values, pension increase conversion factors etc.

The key outcome is that there are no changes to commutation rates, which are the conversion factors used to exchange pension for a tax free lump sum at retirement. Moreover, pension increase conversion factors and early retirement factors are marginally improved from a memberís view point. The new factors become effective from 1st November 2012.

Members who have decided to draw their pension prior to 1st November 2012 are not affected by the review.

Any BTPS member who has already selected to commence payment of their pension on or after the 1 November 2012 date will automatically have their pension options recalculated to reflect the new factors.

The BTPS intranet portal will be updated by 12 November. However, anyone using the portal and electing to retire between 1 and 12 November will automatically get the better factors applied to their pension.