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The company is also proposing to base its benefits package on average salary - instead of final salary - earned before retirement.
Experts believe BT - which closed its final salary pension scheme to new employees in 2001 - will have to cut its dividends if it is to increase contributions to its pension scheme, reports the Financial Times.
John Ralfe, an independent pensions consultant, said in a report released today (November 3rd) that the firm's interpretation of the terms of its privatisation could mean UK taxpayers will have to make up the £16 billion pension shortfall.
As part of its current benefits package, BT offers flexible working hours and interest-free annual season ticket loans.
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