Changes to Release Terms for Phase 4 Bill McLory - CWU Assistant Secretary . When BT announced the introduction of Project Newstart in early 2001, it made it clear that the Newstart and VR terms would reduce over time. Various phases for the reduction in terms were advised to Branches in Special Briefing 49/2001 dated 02 February 2001. Branches will know that the third phase of the reductions is due to end on 30 June this year and a further reduced version of the terms come into effect from 01 July 2002 to 31 March 2003. BT has now reviewed the VR and Leaver terms and has advised the Union of further changes. The revised arrangements are contained in the attachment to this Letter to Branches. In some cases the variation in the terms are significant, particularly with regard to the early payment of pension from age 55. In these cases the early payment of pension results in an actuarial reduction of its value, to compensate for the fact that the payment is paid early and as a consequence is paid for longer. The Union has raised with BT the absence of any firm statement on redeployment, retraining and re-skilling, which were key elements of the Newstart package. We expect that discussions on the company's approach to this crucial area will take place in July. LEAVER & VR TERMS FOR NON-BTPS MEMBERS Under the existing VR and Leaver terms, non-BTPS members are entitled to receive compensation payments only. From 01 October last year BT unilaterally introduced changes to the VR and Leaver terms for non-BTPS members which reduced the financial value. This was done without consultation with or notification to, the CWU. When this issue was brought to the Union's attention immediate representations were made to BT on the matter. As a result of these representations BT has agreed to improve the Newstart and VR terms for non-BTPS members. The new terms for non-BTPS members are as follows: Leaver Terms - 4 weeks basic pay for every completed year of service, capped at 24 months. VR Terms - 6 weeks basic pay for every completed year of service, capped at 36 months. In addition to these improved terms, BT has agreed to apply them from 01 April 2002. The Union argued forcibly that the improved terms should be made retrospective to 01 October 2002 but BT refused to accept this, and the new terms will take effect from 01 April 2002. . Click here to download a copy of the details in Word document format.