BT denies it is forcing employees to sit pension exam

The rebuttal followed reports BT was planning a pilot scheme in which around 8,000 employees would be required to sit a test to prove they understood the defined contribution (DC) scheme they were entering.

It was rumoured that BT's testing would help members understand DC fund asset allocation.

BT pensions director Kevin O'Boyle said reports that the pilot is about to begin were "complete rubbish".

"We have been contemplating how we can use technology and e-learning for pension scheme members, but we would never put in place compulsory tests," O'Boyle said.

The news came after a wave of concern that consumers are unable to understand pensions terminology or make sense of documents about their pensions sent to them by providers.

Earlier this month, the National Employment Savings Trust (NEST) released a pensions phrasebook which aimed to help employees understand financial terminology.

In November, the Financial Services Authority (FSA) restarted a consultation on the disclosure of charges and investment growth predictions in self-invested personal pensions (SIPPs).

Several industry figures complained when the FSA released its original consultation that pension disclosure literature is already too complicated and a new set of rules will make this worse.

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• Topics
• Employee Benefits
• company pensions
• FSA