BT Pension Deficit Post Brexit.

hyubh

agarnett wrote: »

BT peeps are protected by the Crown Guarantee, and unless that works the same as PPF, then surely PPF treatments are irrelevant in this case?

From a recent report on the government's pension liabilities by the National Audit Office:

'... as seen in the case of Royal Mail, the government may also decide to take on historic pension liabilities to facilitate privatisation, increasing its long-term liabilities (by £40 billion for Royal Mail); or it may guarantee pension payments in the event of insolvency, as with BT (whose guarantee was estimated at £7 billion based on the actuarial valuation of the scheme as at 30 June 2014), increasing its long-term risks...'

https://www.nao.org.uk/report/evaluating-the-government-balance-sheet-pensions/

Just as well BT has fared very well since privatisation...

jennyjj

Malthusian wrote: »

Yes, pensions in payment continue 100% (their inflation-linked increases are however capped), unless you took early retirement. Those who retired early and those who have not yet drawn their pension receive 90%

Hmmmm that's tricky. As a section B member, my pension is effectively two parts with NRA of 60 for most of it and NRA of 65 for a couple of years worth. But they have to be taken together. I suppose it's accedemic if I propose to draw before 60 anyway.

Still. 90% is a pretty good safety net. I'll wager that if taking it at 61, and if BT folded, then the government would try to impose that 90% on all of it. I hope we never have to find out.

Teaandscones

Brexit was not good for BT as the EU effectively stopped openreach being forcibly hived off BT by the regulator and thus reducing its secure income (and ability to fund its pensions). It is one of the reasons that Rupert Murdoch used his papers to campaign for Brexit.

robin61

Teaandscones wrote: »

Brexit was not good for BT as the EU effectively stopped openreach being forcibly hived off BT by the regulator and thus reducing its secure income (and ability to fund its pensions). It is one of the reasons that Rupert Murdoch used his papers to campaign for Brexit.

All BT people were ' encouraged' by Gavin Patterson to vote remain. Although that wasn' t the reason given.