BBC To Use Licence Fee For Pensions Instead Of Employees Paying

14th January 2014

Nice work if you can get it. And they don't even pay the tax they should either.


The BBC is to pump £740 million of licence fee payers’ cash into its pension scheme, to try and close a funding deficit that has nearly doubled over the last three years.


According to a new valuation, the deficit in the BBC pension fund – ie, the value of its assets minus its projected liabilities to retiring staff – has grown from £1.1 billion in 2010 to £2bn in 2013.


However the BBC has decided not to ask its long-serving staff – who, in common with much of the public sector, enjoy guaranteed pension benefits when they retire – for any additional contributions.


As a result, licence-fee payers will be expected to foot the entire bill, at an additional cost of £365million over the next four years.


The amount that the BBC pays to its pension fund over the next four years will increase from an already-agreed £375m to £740m.



While costing licence-fee payers dearly, the decision will ward off any conflict with the unions who represent BBC staff – principally the National Union of Journalists and Bectu.

In 2010, the BBC suffered industrial action, including strikes, when it asked staff to accept changes to the pension scheme to help pay down the deficit.

http://www.telegraph.co.uk/culture/tvandradio/bbc/10570964/BBC-to-pump-740m-of-licence-fee-payers-cash-into-pension-scheme-deficit.html

I've just been reading some of the comments on the Telegraph regarding this story and like them, I am effing peed off so much about this.

Who the hell do these people think they are?

I can tell you are jealous of the fact they have an effective union...perhaps you should start one for your trade andy....  

BigAndy9 wrote:14th January 2014

Nice work if you can get it.  And they don't even pay the tax they should either.


The BBC is to pump £740 million of licence fee payers’ cash into its pension scheme, to try and close a funding deficit that has nearly doubled over the last three years.


According to a new valuation, the deficit in the BBC pension fund – ie, the value of its assets minus its projected liabilities to retiring staff – has grown from £1.1 billion in 2010 to £2bn in 2013.


However the BBC has decided not to ask its long-serving staff – who, in common with much of the public sector, enjoy guaranteed pension benefits when they retire – for any additional contributions.


As a result, licence-fee payers will be expected to foot the entire bill, at an additional cost of £365million over the next four years.


The amount that the BBC pays to its pension fund over the next four years will increase from an already-agreed £375m to £740m.



While costing licence-fee payers dearly, the decision will ward off any conflict with the unions who represent BBC staff – principally the National Union of Journalists and Bectu.

In 2010, the BBC suffered industrial action, including strikes, when it asked staff to accept changes to the pension scheme to help pay down the deficit.

http://www.telegraph.co.uk/culture/tvandradio/bbc/10570964/BBC-to-pump-740m-of-licence-fee-payers-cash-into-pension-scheme-deficit.html

Agreed Andy, I think too many people have unrealistic expectations around pensions. Many companies are facing deficit issues, including the one I work for.  Yes I've had to bank my final salary pension years and yes, I've had faced increased contributions from 0% to 7% of salary over the past decade or so.  However, I would rather accept responsibility and make provision for myself when I retire in conjunction with my employer.

What is worse is to stick your head in the sand and dig your heels in like a stubborn child