BT pension 'help' facing EU probe by Finance News Bulletin
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Published: 04/12/07
The European charge is to investigate whether BT is getting unfair financial help from the state with its retirement fund liabilitiesThe telecoms operator reimbursement from a government guarantee that exempts it from making some pension contributionsThe guarantee - which required to safe BT workers' pensions after it was privatised - may give it an advantage over its competitors, some claimBut following a grievance it received last year, it wants to see whether the agreement gives BT a monetary advantage
The guarantee exempts the telecoms firm "from sure common law financial obligations", such as paying a levy to the Pension Protection finance, the charge saidThis fund was created by the UK government in 2004 to "assurance pensions when sponsor companies go bankrupt", it addedBut BT said that the guarantee only reimbursement those who were part of the BT pension scheme when it was privatised"BT and the trustees think that there is an effective and equitable system for retirement fund protection in the UK which does not lift state aid issues and will cooperate fully
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Shock report shows steep house price fall - Published:16/10/07
The housing market could be in a much worse condition than recently thought as figures nowadays showed house prices falling at their fastest rate for two yearsThe influential Royal organization of Chartered Surveyors' (Rics) account showed a shock increase in September in the number of its members coverage a drop in house pricesin general, 146% more surveyors reported a drop in house prices than those who said there had been a rise, a sheer increase from the 33% more reporting a fall in imposingRics said the fall seen during September was the fastest refuse since September 2005, when 194% more surveyors reported seeing a drop in the price of property than those who saw a riseIt had been expecting September to deliver a alike picture to August's report But the surprise fall in prices has given go up to fears that the Northern Rock fiasco has severely dented self-assurance in the economy and property and mortgages specificallyThe August dip was the first time that the study had shown a drop for two years, while investigation from potential buyers suffered their biggest fall for three existence that monthThe Rics report for September showed the figure of people looking to buy a house dropped for the 10th consecutive month and at its best rate for four and a half yearsIt said five interest rate rises combined with mortgage groups tapering their lending criteria in the face of the global credit chomp was weighing further on already stretched buyersThis contributed to 51% more surveyors coverage a fall in people looking to pay money for a home, down further from the 39% who had seen a reduction in imposingSurveyors remained pessimistic about the outlook for both prices and buyers going forward, with expectations for house price growth attainment the lowest level since May 2005At the same occasion the group also reported a drop in the number of properties coming on to the market, with novel instructions falling for the fourth month in a line London was the only region to dollar this trendHoward Archer, chief economist at Global Insight, said, 'Given this background, there is undeniably an increased risk that the accommodation market could see a sharp correction over the coming months The danger will increase if an extended credit crunch more and more feeds through to have a marked dampening impact on UK economicRics orator Jeremy Leaf said: 'Although house prices continue to fall, the underlying economy leftovers strong A major alteration in the market seems unlikely while economic growth is above trend and employment conditions remain buoyant'The mixture of increasing interest rates, the introduction of HIPs and volatility in the financial markets resulting in tapering of lending criteria, has certainly affected the self-assurance of buyers and sellers'As a result, some would-be buyers are turning to the rental marketplace whereas others, conscious that the next move in interest rates is now likely to be down rather than up and marketplace meltdown is highly improbable, are seizing the opportunity to negotiate with more flexible vendors in a less competitive market'The largest cost falls were seen in East Anglia, Wales and the Midlands during September, while lesser falls were reported in the South East, South West, Yorkshire and Humberside and the North West Scotland and London were the only areas that sustained to see price risesIan, gullability and actualy plain greed is what's got us to where we are nowadays Prices have sustained to rise on the back of the government driven majority media spin together with disturbed and misleading property programmes All feeding the propaganda message of a fantasy earth of steady sound economics where house prices continually rise and where quick profits can be made easily without danger Not to talk about a weak and far from impartial BoE comittee that have helped create the debt fizz and then tried to bolt the stable door after the occasion Instead of dithering around with quarter point rises more serious politicaly disliked effective moves were needed previous to stop things getting out of give However Brown give picking the committe in the first place and set targets using unreal CPI information instead of RPI to effectively micro manage what's actually a committee operational for him, the control freakWell said Harry Medway There is a group of jealousy over BTL Most Btls are ordinary people investing extended term mostly for pensions BTL didn't become popular until crisis hit the pensions manufacturing Most renters can have enough money the mortgage but can't have enough money deposits So stop criticising the BTLs If no-one wanted to rental fee there wouldn't be any BTLWe are told we require thousands of new homes, interest rates will come down, inhabitants is increasing, more and more people live alone Property is market ambitious, there will be a minor correction at worseIf enough press populace and those with a vested interest keep talking down house prices they will fall, that's what more often than not happens many people these days are so gullable they actually consider what the popular press say, they pay money for tabloid rubbish and believe that too, now look at the instant turnaround(if you beleive the press) in the Prime Minister's alleged Popularity on the whole you can't hike up Mortgage Rates 5 occasion and expect people to be able to buy houses similar to they did before so if this is a slow down why should we be surprised Its time we were all secluded from BOE hiking up rates with no way we can challenge themWhat is this "small correction" phrase bounded about by the buy to allow people The market is massively overvalued and a far bigger bubble than the US If anything we are in for a major correctionI can't see how it is a come first come first situation for BTLs Most renters rent because they can't afford to pay money for How can they afford to pay someone elses mortgage so that they can make a profit The sums now don't add up More like a no- win situation for the BTL to me perhaps the banks won't allow them buy to debtIn the 1990 property crash, the RICS and their members were the last people to acknowledge the 30% corection that was clear to everyone trying to buy and sell their house It's the same attitude because because Turkeys voting for ChristmbecauseDarling knows that the only pastime in town at the moment and for the foreseable prospect is BTL, if that dries up, their won't be anyone to pay money for Thats why he has reduced CGT by more than 50% on BTLsWith "Liar Mortgages" no longer an option and stricter criteria obtain a mortgage, a correction alike to 1990 is certainP Wright is dreaming Does he really think that there is lots cash to be borrowed What about the 13 trillion already owedWe're not jealous, we just want a cost crash so we can move house without a stupidly long mortgage hanging around our necksI now feel most people are jealous of all the btls, as they have more than one property At the end of the day its a long-term commerce, as for house prices fall to around 5 to 10% then they will increase in value In ten yrs occasion do you really think house prices will be the same that they are now, no way, add another £100,000There are also evils in France,more public money owing and less consumer money owing than in the UKFrench people tend to shy absent from credit unless it for a house or carThe lending system are very strict:not more than 33% of take home disburse allowed including rent or mortgage,also illegal to write a lively chequeStamp duty is 85% and land agents charge around 10% to sell your houseMind you,they don't put up for sale that many,some houses are on the market for 2 yearsThe tax rules for BTLs are also very severe and complicatedWill be visiting UK at the end of the month,will be attractive to see what my old house is now worthProbably a group more than I sold it forThe Northern Rock debacle is just a glitch HIP's are just starting to register and that too is reflecting in the figuresDemand continues to outstrip supply, money is still contemptible to borrow, populace are wanting to buy their own homes The government still desire hundreds and hundreds of new homes to be built , or was it more The population is still growing at a massive speed, etc etcWhy should prices fall approach the spring of 2008 all of today's talk will have been forgotten and prices will be on the up once againSelect a loan word 12 months (1 year) 24 months (2 existence 36 months (3 existence 48 months (4 existence 60 months (5 existence 72 months (6 existence 84 months (7 existence 96 months (8 existence 108 months (9 years) 120 months (10 years)Please choose a type of insurance Life insurance Home and contents automobile Breakdown services physical condition - medical physical condition - dental Travel Pet - dog.
Read More: Shock Report Shows Steep House Price Fall >>Grandparents counting cost of childcare - Published:15/02/07
Retired grandparents are receiving hit with the cost of financing childcare in spite of the fact that the pensions shortfall is affecting their throwaway incomeAccording to engage Mutual Assurance, half of grandparents in the UK have put money towards the upkeep of their grandchildren within the last six months and one in five have met the cost of childcareIn the history three months, 21 per cent of grandparents who are retired have subsidised childcare expenses which compares to ten per cent back in JulyKarl Elliott, 3GB campaign representative for engage Mutual Assurance, supposed: "With money issues becoming an increasing concern in modern Britain, this research shows the significant role families play in as long as financial security"Despite concern that old age pensioners are unable to have enough money retirement, grandparents continue to make a valued contribution to extended family finances"Mr Elliot then affirmed that child trust funds (CTFs) were an effective method for grandparents and parents alike to put cash aside for a child's futureIf a customer sets up an connect Mutual Assurance CTF with a usual direct debit contribution they are entitled to anything up.
Read More: Grandparents Counting Cost Of Childcare >>Plenty of business for the PPF - Published:16/01/07
The Pension Protection finance (PPF) has taken on 40 insolvent pension schemes in less than a yearIt opened for commerce last April to save pension funds which have been left with holes in their money by insolvent employersLast Friday, the retirement fund scheme of AP Hydraulics, the well-known manufacturer of car brake pedal parts based in Leamington Spa, became the latest to apply to the PPF to be bailed outBut a requirement to begin making higher pension contributions next month, amounting to £2m a year, would have drained it of all its cash and made it not capable to pay any suppliers or staff"It was pretty obvious to me that a corporation so small would not be clever to make that payment," said Dennis Reed, a trustee of the pension scheme"In piece of information, if the corporation had not called in the administrators, the trustees would have done, as we could see the company couldn't make the payments," he addedAlong with its sister corporation Aptec Technologies, based in County Durham, it is consideration to be the first company it seems that trading solvently that was tipped into insolvency by its pension black holeThere is some good information for the 2,000 members of the AP Hydraulics retirement fund scheme, counting pensioners and former employees who have yet to retireThe administrator of the corporation, Matthew Hammond of accountants PWC, is confident he can sell the businessSo far, he has inward more than 40 expressions of interest and he has been spending his time showing prospective buyers around the corporation and asking them to make firm bids"I'm very confident we can sell the commerce as a going concern We need another month at it before we can conclude," he saidThe sale price will not raise anything close to the amount of money essential to cover the outstanding pension fund liabilityBut unusually for an insolvent definite, AP Hydraulics did not owe any money to its banks or other lenders, and outstanding only £1m to various trade creditorsAs the gap in the pension fund has been approximate at about £50m (on what is known as a "buy-out" basis), then the system should receive 98% of any proceeds from the company's salebrake pedal assembly line at AP Hydraulics previously Lockheed) 1947 Photo: Leamington library and AP HydraulicsOnce the company employed 7,000 labour in Leamington alone and it was part of a much larger international groupAs the company has now been shorn of its retirement fund fund problem, it should be more attractive to a new proprietorAccording to Dennis Reed, the firm has good forecast: "The company has a lot of new business pending in, it is starting to grow and we are thinking of captivating on more employees in 2007"Firms like Land Rover, LDV vans, London Taxis International and Morgan cars all employ its brake parts, including calipers and hosesThese major customers have been very supportive, according to Matthew Hammond, serving to stabilise its trading positionAs these brake pedal parts are such critical devices, Hammond is hopeful a trade buyer will emerge from within the railway wagon industryWhile Matthew Hammond is full of activity trying to sell the AP Hydraulics business, the PPF is about to decide if it should attempt to rescue its pension schemeCan the scheme be rescued, perhaps because a buyer of the insolvent boss is willing to take on the pension scheme tooAnd are the possessions of the retirement fund scheme still high enough to make payments that are at least equivalent to the security net level offered by the PPFIf the reply to both questions is no, then the scheme will go into what has been dubbed the "investment pen", along with the 40 schemes the PPF has already decided to take onAmong them have been the pension schemes of MG Rover, Sheffield Forgemasters, Wiggins Group, upland Poultry and Tomkinsons CarpetsIf the PPF accepts the AP Hydraulics scheme for appraisal, that will mean a thorough appraisal of its financesPPF spokesman Paul Reynolds said this would reflect the bankruptcy process at the firm "We will identify all scheme members - there will be a group of data cleaning We will also make sure there has been no fraudulent action"That process will last at least 12 months, so no scheme has been completely absorbed into the PPF As a result, it has yet to take on formal responsibility for paying any current and future pensionersSo for the occasion being, the scheme trustees stay in their work, paying out pensions to pensioners, although anyone who retires from the insolvent schemes now will only get 90% of their usual pension - the same as the PPF's safety-net levelIn due course, though, as the PPF takes on full responsibilty for schemes that have gone bust, it will grow into one of the biggest private division pension providers in the country, responsible for paying out to tens of thousands of present and prospective pensionersAnnuity reform Women 1 Women 2 Pension human rights Divorce labour pensions Lump sums Pension Credit Frozen pensions Shortfalls Overseas pension Small pensions Tax and pensions retirement fund repair Made simpleState pension With-profits last salary Money purchase Annuities Serps State Second.
Read More: Plenty Of Business For The Ppf >>