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Railway Pensions: implications of recent BT pension scheme

1 November 2010

Members may be aware of last week's High Court ruling that telecomms company BT's pension scheme is subject to 'crown guarantee'. This means that the government would have to underwrite the pension scheme in the event of BT becoming insolvent.

Some commentators have suggested that similar ’crown
guarantees’ apply to the pension funds of other nationalised
industries, including the railway. If this proved to be
correct, this would of course be very welcome news, particularly
for those members formerly employed by Jarvis and Catalis, both
of which became insolvent recently. However, it is thought that
this is unlikely.

TSSA General Secretary Gerry Doherty will now write to the
Railway Pension Scheme trustees seeking their views on the
implications of the court ruling, with the expectation that
they will seek legal advice.

A circular will be issued when the position becomes clearer.

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