A recent revelation, by the Sunday Telegraph newspaper, has refuelled the debate on company pension funds. Several former State monopolies negotiated a Crown Guarantee at the time of their privatisation, i.e. a State obligation to pay off part of the deficit in their funds. (Ref. 06404)
The news came to light after BT, formerly British Telecom, called for a reduction in its contribution to the financing of Pension Protection Fund or PPF, a safety-net set up last year funded by corporate taxation. The telecoms operator called for a discount, owing to the fact that it would never use the PPF, as half of its liabilities would be paid by the taxpayer if the company went bankrupt…
Following this revelation, according to the Sunday Telegraph, several ministries have set up enquiries
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