UK - British Telecom is to challenge Ofcom's decision not to take into account its scheme deficit when setting its regulated charges.
This comes as the telecoms giant announced in its first quarter results to 30 June it had improved its deficit from £9bn at the end of 2008 - to £6.6bn in the first quarter of this year.
BT chief executive Ian Livingston said: "We think Ofcom came to the wrong answer and we will be making that very clear and looking at whatever action we need to take on that issue."
He added: "We will be making strong representations as to why that is incorrect."
Last week Ofcom snubbed BT by ruling out changes to its wholesale charging structure, which would effectively see it charge customers to help plug its scheme deficit (Global Pensions: 23 July, 2010).
Livingston also said the scheme trusteedecision to seek a High Court ruling over the Crown Guarantee was "to get real clarity on who the guarantee covered on behalf of the members".
He said: "It is not a huge issue from a valuation point of view because the trustee never used the Crown Guarantee."
The Crown Guarantee is a government guarantee - put in place when BT was privatised in 1984 - to stand behind BT's obligations to the scheme if BT became insolvent.
Livingston added the scheme's funding valuation and recovery plan remained under review by The Pensions Regulator.
He said discussions are ongoing but it will be a "long process".
PP has analysed the accounts of the biggest pension consulting firms and recorded the turnover (revenue) in their most recent accounts. The full leaderboard is below…
UK defined benefit (DB) schemes have increasingly undertaken benefit reviews over the last four years resulting in an acceleration of scheme closures, Aon research finds.
Contributions are no longer sufficient to meet regular payments for three-quarters of small- to medium- sized defined benefit (DB) schemes, Buck analysis finds.