GREECE - Greek telecom operator Hellenic Telecommunications Organisation (OTE) has said it will have to book a €129.8m ($179m) pensions cost charge to its 2010 accounts following an actuarial study by the Greek government.
The additional cost, estimated by the Greek Ministry of Labour and Social Insurance, is a result of the firm's 2005 to 2008 voluntary retirement programmes. OTE is appealing the calculations, however.
"On 28/01/2011, the Ministry of Labour and Social Insurance notified OTE of the results of actuarial studies...with the purpose of estimating the additional financial burden of the pension funds, incurred as a result of OTE's voluntary retirement programmes," OTE said in a statement.
"The additional financial burden to the pension funds which has to be covered by OTE was set, according to actuarial studies, at €129.8m. Following the requirements of the International Financial Reporting Standards, this amount will be charged in the OTE income statements of the year 2010," the company added.
OTE said it filed an appeal in May 2010 to annul the original ministerial decision, with the procedure pending in the administrative courts.
The Greek state has a 20% stake in OTE, while Deutsche Telekom AG owns 30%. Both the government and German firm appoint the OTE's management.
Henry Tapper shares his thoughts on how IGCs could provide value for money statements that people wanted to read
In this week's Pensions Buzz survey we want to know if independent governance committee remits should be expanded to include assessment of providers' drawdown facilities.
PwC, KPMG, EY and Deloitte must break up their consultancy and audit businesses into distinct firms to provide greater focus on the "most challenging and objective audits", the competition watchdog has said.
The Department for Work and Pensions (DWP) has released its first batch of guidance setting out how the guaranteed minimum pension (GMP) conversion legislation may be used to resolve unequal payments.