Forum for former BBC staff

Forum for former BBC staff
http://www.ex-bbc.net/cgi-bin/yabb/YaBB.pl >> Pensions >> Pensions - Greg Dyke's message http://www.ex-bbc.net/cgi-bin/yabb/YaBB.pl?num=1044823132 Message started by Forum Admin on Feb 9^th, 2003, 8:39pm

Title: Pensions - Greg Dyke's message
Post by Forum Admin on Feb 9^th, 2003, 8:39pm

This is the text of Greg Dyke's message to Pensioners:

"Over the past year the difficulties facing company pension schemes have been widely reported.

"Many companies have scrapped their final salary pension schemes; others have reduced the benefits for new employees.

"The BBC remains committed to its scheme.

"However the latest valuation report makes it clear that some of the extra benefits we have all enjoyed because the Fund has been in a very strong position can no longer continue.

"For some time the scheme has had a surplus. This has allowed the BBC to improve the scheme's benefits and on a number of occasions to give pensioners increases which have been above the rate of inflation.

"At the same time the BBC and contributors have been able to pay reduced contributions.

"The Actuary's 2002 Report shows, however, that if the scheme is to remain affordable, nothing should be done to increase the scheme's costs.

"This means that increases greater than the inflation-linked increase promised in the rules cannot be justified.

"In addition, contributions for the BBC and active members must rise.

"This is not the easiest message to convey.

"I know that some pensioners will be disappointed; and some active members will not want to pay higher contributions.

"I hope, however, you will agree that the measures we are proposing are well worth making to ensure our retirement income from the scheme is secure."