Policy background Miscellaneous Guarantee of pension liabilities under Telecommunications Act 1984
The British Telecommunications Pension Scheme is a defined benefit private pension scheme. When British Telecom was privatised, the Telecommunications Act 1984 created a Crown guarantee for the BT Pension Scheme, covering the liabilities of BT plc to the Pension Scheme in the event that the company entered insolvent winding-up. The guarantee has never been called upon.
	Openreach is the division of BT Group that develops and maintains the UK’s main telecoms network used by other communications providers as well as BT’s own retail business. On 29 November 2016, following consultation on proposals to address competition concerns, Ofcom published their update on plans to reform Openreach, concluding that they were minded to order legal separation of Openreach from the rest of BT Plc unless a voluntary agreement could be reached. On 10 March 2017 Ofcom and BT agreed proposals on a voluntary separation of the Openreach business. The Act provides powers to maintain the coverage of the Crown guarantee for pension liabilities relating to members of the Pension Scheme who transfer employment from BT plc to the separated Openreach business.