BT decision could open valves pension application
A former senior counsel to the pensions regulator said Daily Telegraph that "there are many who promises of Government should be guarantees of Crown [pension] plan."
Clive Pugh, formerly trustee Manager services to the pensions regulator and now a partner to practice law, Burges salmon said he expected a "flood" requests for recognition of the protection of other government companies formerly belonging to the State.
"With this decision of the High Court maintenance Crown guarantee to BT Thursday] and many other potential Crown ensures clear, it seems that Government is now subject to billion pounds of potential responsibilities as it tries to reduce its deficit", he added.
Mr. said Pugh privatised companies were closely monitor battle of BT with Government guarantee, the guarantee which will force the State to cover deficits of pension in the event of insolvency.
He added that they are likely to make similar claims if the telecommunications group emerges victorious calling expected. " "I would be very surprised if he did not follow trial", said Mr. Pugh.
This means that the taxpayer could, in theory, be forced to pay up to £ rise to cover pension liabilities in the unlikely event that many companies give guarantees do bankruptcy.
The decision of the High Court of BT Crown guarantee means that the taxpayer must provide almost all the members of 344,000 BT.Un payment pension plan pension in the event where BT goes bankrupt could be as much as 22 £ 8bn.
However, Mr. Pugh has warned that privatized companies are unlikely to have as hard a case for the protection of the State as BT.It is understood BT case suspended on the interpretation of the two sentences among train legal documents written when BT was privatised in 1984.
It is difficult to discover what enterprises have a strong case that the information is not readily available to the Trustees of pension plans.However, John Ralfe, an independent pensions, expert says it is believed that railway employees in the railway industry, UK coal and Trinity House, which runs the United Kingdom lighthouses regime pensions have best cases for other réclamations.Les mentioned include British Gas and National Grid.
A spokesman for pensions regulator confirms some other companies are guaranteed by the Crown, but refused to name them.
ROS Altmann, a pension consultant former Government stated that the taxpayer could leave with a "terrible burden".
"If BT wins [the projected call], other companies could certainly challenge their case before the courts," she says. "It could all get pretty messy.
"This could be a huge blow for the contribuable.Nous save £ emissions annually on the State, but at the same time the State pension may be made responsible for billions [of the private sector pension] .the poor taxpayer is suffering from the inability to politicians and policy makers to understand the financial realities long-term pensions."
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