From: "Crowley" 
Newsgroups: uk.politics.misc uk.finance
Subject: Re: Taxpayers to foot the bill for BT pensions deficit and NHS overspend after Government caves in ?
Date: 25 Apr 2006 05:30:44 -0700
   posting-account=yGNAvw0AAABsgRsckUU2yFAQy4yH8Lsf


Colin Forrester wrote:
> I can't see how the BT pension fund failing to meet its pensions bill
> makes BT insolvent.

It's deficit is *relatively* small at =A32.1 billion at present but who
knows what the future will bring ? How many other companies have the
safety net of such a guarantee from the taxpayer ?

This state guarantee is already having unforeseen consequences ........

"=2E..The existence of the guarantee - details of which only emerged
earlier this month - could reduce the amount of money that BT has to
make into the new Pension Protection Fund.

Under new rules, all the UK's top firms are required to pay into a
government-backed fund designed to protect employee pensions in the
event of company failure.

Individual company payments are currently being worked out but the
guarantee means that BT's liabilities could be viewed as less high risk
and thus reduce its payments.... "