One way to get your competition to pay for your pension deficit

As businesses factor the cost of servicing a defined benefit pension scheme deficit into their operating costs, I was surprised to read that BT currently does not.

So, news that Ofcom, the telecoms regulator, is considering allowing BT to factor in its pension deficit when billing rivals that pay for using its network, must be good for shareholders (many of whom will be pension funds themselves). See:

Regulator could force BT's rivals to help carry burden of its £6bn pension deficit (The Times)

Elsewhere, Money Marketing reports that the Conservative Party is apparently looking at proposals to encourage employers towards hybrid pension arrangements which include a basic defined benefit element and a money purchase top-up. Hardly rocket science, but at least pensions appear to be on their radar as we start the run-in to the next election. See:

Tories to look at basic DB plus DC (Money Marketing)

If that whets your appetite, you might be interested in this comment on a ToUCstone blog yesterday. See:

Just a thought….We have seen a huge shift from schemes where the employer took responsibility for investment and longevity… (ToUChstone Blog)