BT ends its defined-benefits pension scheme.

BRITISH Telecom's decision last week to end its defined-benefits pension scheme is a genuine landmark in UK pensions.

Within the pensions industry and among actuaries, the classic occupational pension has always been popular. These schemes normally guaranteed that the employer would pay the employee what were described as defined benefits. These were normally two-thirds of an employee's final salary just before they retired, adjusted for the number of years they worked for the company.

To ensure that the company had the money to meet this future obligation,