To All Branches with
BT Members
Dear
colleague
BT Pension Scheme -
Crown Guarantee
The European Commission has opened an investigation
under EC Treaty state aid rules on the effects of the BT Pensions Scheme
(BTPS) Crown Guarantee covering the pension liabilities on the EU
telecommunications markets. The investigation is likely to take between
one and two years.
The important point to note at this stage is that
Commission does not question the principle of the guarantee as far
as it concerns BTPS pension liabilities. The issue in question is the
degree to which the guarantee means BT is exempted from certain
financial obligations, such as the size of the payment of the levy to
the Pension Protection Fund.
More details about the background to the Crown
Guarantee are contained in LTB 303/2006.
A
copy of the EU announcement is attached.
Yours
sincerely
Nigel Cotgrove
Assistant Secretary
