The BT Pension Scheme (BTPS) is the UK’s largest corporate defined benefit pension scheme with assets of about £40 billion ($60 billion), paying more than $3 billion in pension payments per year. The scheme closed to new members in 2001, but remains responsible for securing the long-term financial wellbeing of approximately 320,000 current and future pensioners.
The scheme is managed and administered by the trustee, BT Pension Scheme Trustees Limited, on behalf of members and in accordance with the terms of the scheme rules and relevant legislation. The executive arm of BTPS is called BT Pension Scheme Management Ltd (BTPSM), which is authorised by the Financial Conduct Authority (FCA) and employs approximately 50 staff. BTPSM provides investment and advisory services solely for the scheme.
This includes providing the trustee with advice on strategic asset allocation and risk management; advice on public policy issues and sustainability; acting as agent of the trustee in appointing third parties to provide investment management, custodial and operational services for the scheme; monitoring the activities of third-party service providers and reporting to the trustee; and engaging in direct management of certain assets of the scheme.