Telecoms giant BT is reportedly considering raising its mandatory retirement age as part of radical proposals to cut its huge pension deficit
An internal review, which could help to cut its £2.1bn pension deficit, is at an early stage, reports the Times.
BT’s 100,000 employees currently work until thye are 60. This limit could be raised or scrapped altogether, the newspaper says.
The group’s final-salary pension scheme has been closed to new members since April 2001 and BT is required to protect the benefits accrued by members up till then.
However, it could alter the retirement age for members who are still working.
The group said that it is also looking at alternatives to raising the retirement age.
A survey conducted last July by actuaries Lane, Clark & Peacock found that the total pension fund deficit of the UK’s 100 largest companies was £42bn.
This figure rose to £63bn in February, according to a survey issued this week by consultancy Watson Wyatt.
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