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.
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