Taxpayers will pay if BT fails

first_img KCS-content Share Taxpayers will pay if BT fails whatsapp Thursday 21 October 2010 9:05 pm Tags: NULL TAXPAYERS will have to stump up a staggering £23bn to BT’s pension trustees if the telecoms giant ever goes bust.A landmark ruling yesterday means even BT workers who joined after the firm was privatised in 1984 will have their pension liabilities covered.The ruling will increase the government’s contingent liability but will not affect the national debt figure. The government is likely to appeal the decision. It had argued its liability only covers benefits that had accrued up until the date of privatisation, which would have capped the guarantee at £7.3bn. BT insists the scheme will have little financial impact, instead benefitting its trustees. A spokesman said: “The judgment has no impact on our agreed payments to the scheme.”However, the firm’s shares jumped more than six per cent on news of the ruling amid hopes insurance on the liabilities could decrease thanks to the guarantee. They closed at 156.3p.The ruling is unlikely to cause other formerly privatised firms to seek protection for their trustees as it relied on a special deal struck between the government and BT during the privatisation process. BT’s pension deficit stood at £9.1bn when it was calculated in December 2008. center_img Read This NextThe Truth About Bottled Water – Get the Facts on Drinking Bottled WaterGayotRicky Schroder Calls Foo Fighters’ Dave Grohl ‘Ignorant Punk’ forThe WrapCNN’s Brian Stelter Draws Criticism for Asking Jen Psaki: ‘What Does theThe WrapDid Donald Trump Wear His Pants Backwards? Kriss Kross Memes Have AlreadyThe WrapHarvey Weinstein to Be Extradited to California to Face Sexual AssaultThe WrapPink Floyd’s Roger Waters Denies Zuckerberg’s Request to Use Song in Ad:The Wrap’The View’: Meghan McCain Calls VP Kamala Harris a ‘Moron’ for BorderThe WrapNewsmax Rejected Matt Gaetz When Congressman ‘Reached Out’ for a JobThe Wrap2 HFPA Members Resign Citing a Culture of ‘Corruption and Verbal Abuse’The Wrap by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeMisterStoryWoman Files For Divorce After Seeing This Photo – Can You See Why?MisterStoryTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastNoteabley25 Funny Notes Written By StrangersNoteableyMoneyPailShe Was A Star, Now She Works In ScottsdaleMoneyPailSerendipity TimesInside Coco Chanel’s Eerily Abandoned Mansion Frozen In TimeSerendipity TimesBrake For ItThe Most Worthless Cars Ever MadeBrake For ItBetterBe20 Stunning Female AthletesBetterBemoneycougar.comThis Proves The Osmonds Weren’t So Innocentmoneycougar.comMagellan TimesThis Is Why The Roy Rogers Museum Has Been Closed For GoodMagellan Times whatsapp Show Comments ▼ last_img

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