PORTUGAL - Portugal Telecom has agreed to sign over its pension fund, which has €2.8bn ($3.7bn) in liabilities, to the state.
Portugal Telecom has agreed to transfer €1.8bn in assets, and make additional payments to pay off the remaining liabilities. The firm will make three payments in total paying €100m on December 31, 2010, €450m on December 20, 2011 and €454m on December 20, 2012.
The firm will continue to provide retirement benefits to part of its active and former employees, including pension supplements and health care plans which totalled €455m at the end of the third quarter in 2010, Telecom said.
In September, the government revealed it was considering the transfer.
Most respondents in this week's Pensions Buzz do not think businesses should be able suspend AE contributions if in financial distress.
Former BHS owner Dominic Chappell has lost the appeal against his section 72 conviction and sentence for failing to hand over information to The Pensions Regulator (TPR).
This week's top stories include Marsh and McLennan Companies agreeing to buy JLT, and the home secretary calling for AE to be scrapped in a no-deal Brexit scenario.
Lesley Titcomb says the watchdog wants closer interactions with pension funds to spot problems sooner and act before having to use its more stringent powers