European Commission Ruling on BT Pensions

12 02 2009

The European Commission has ruled that the Crown Guarantee underpinning BT pensions is, to a very limited extent, contrary to European competition rules. This finding is very limited – it finds only that this gives BT a slight commercial advantage over its competitors as the Crown Guarantee limits BT’s obligation to pay a full levy to the UK Pension Protection Fund. BT will now have to pay PPF Levy payments in full. 

The Commission has also confirmed that since the Crown Guarantee itself brings no other advantage to BT and the guarantee benefits BT employees rather than the company itself, that the guarantee is not in breach of EC competition rules. The Crown Guarantee will therefore continue. 

This story is being reported in today’s press, and Connect will update you of any developments.

Get the news that’s most relevant to you by keeping all your details up to date

Advertisements

Actions

Information

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s




%d bloggers like this: