THE £14bn BLACK HOLE

BT closed its final salary scheme to new entrants in 2001 but thousands of staff are still using it to build up their retirement pots. Other workers at the company are enrolled on a defined contributions scheme.

Bosses say the only way to plug a £14bn black hole is to overhaul the pension scheme. They have proposed closing the final salary scheme to accruals after April and moving those on that scheme to defined contributions, with the company offering to increase its own contributions.

Another option would see the defined benefit scheme kept open for non-managers but with members contributing more. Unions have dismissed both plans.