The deficit in BT’s pension scheme guaranteed by taxpayers is estimated to have soared by 5 billion this year to about 16 billion due to the falling stock markets, according to estimates, Telegraph.co.uk reports.
Independent pensions consultant, John Ralfe, calculates that taxpayers could be underwriting a deficit which is more than the telecom group’s 9 billion market value due to the Government’s creation of a “crown guarantee”, which BT estimates covers 75% of its pension liabilities.
The guarantee covers the 250,000 members who joined prior to the company’s privatisation in 1984 and will be called upon if BT is ever wound-up and if there are not sufficient assets in its pension fund to finance those members’ pension rights.
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D.C.