Portugal Telecom has announced a deal with the Portuguese government to transfer the incumbent’s E2,804m pension liabilities to the state.
The company pledged to fully fund the pension transfer to the government’s Caixa Geral das Aposentações (Civil…
Portugal Telecom has announced a deal with the Portuguese government to transfer the incumbent’s E2,804m pension liabilities to the state.
The company pledged to fully fund the pension transfer to the government’s Caixa Geral das Aposentações (Civil Servant pension) fund in installments until 20 December 2012.
A payment of E1,800m was made yesterday, and it will be followed by additional payments of E100m, E450m and E454m on 31 December 2010, 20 December 2011, and 20 December 2012, respectively.
The Portuguese government first announced plans to transfer PT’s pension assets back in November.
Some reports have suggested the move is merely an accounting trick to help the country hit its budget deficit target of 7.3% this year.
