Forum for former BBC staff

Forum for former BBC staff
http://www.ex-bbc.net/cgi-bin/yabb/YaBB.pl >> Pensions >> Pension Question. http://www.ex-bbc.net/cgi-bin/yabb/YaBB.pl?num=1288356843 Message started by F.M. on Oct 29^th, 2010, 12:55pm

Title: Pension Question.
Post by F.M. on Oct 29^th, 2010, 12:55pm

Pure and simple.
Will the six year freeze on the TV license have any bearing on current pensioners pension payments?
Further to that will any financial shortfalls in the corporation have any effect?

Title: Re: Pension Question.
Post by david en france on Oct 30^th, 2010, 2:54pm

At first I thought the simple and only answer to your quite proper concern was "No" because we have always been told, and this is re-iterated by the BBC Pensioners Association in recent correspondence, that nothing can change the terms of existing pensions payments. However when it comes to annual increases I am certainly not so sure. It would be very difficult to justify RPI related increases for pensioners when serving staff are getting nothing or very little. So I would be grateful if someone with a position of authority on the pensions issue would clarify this for us a,s,a,p. for I have no doubt that we will all be feeling the pinch in the next six years. But in the meantime, if you are not yet a member of the BBCPA then I urge you to join. They have their own website at <www.bbcpa.org.uk>.

Title: Re: Pension Question.
Post by F.M. on Oct 31^st, 2010, 11:03am

Thnk You David.
Much appreciated.

Title: Re: Pension Question.
Post by Knocking On on Oct 31^st, 2010, 1:08pm

Hi,
Concerning Pension increases during the six year TV licence freeze.... I would agree with David, in that nothing can change the terms of existing pensions in payment.

However from what I have read fom the (Downloadable) BBC Pension Scheme 43rd Deed of Variation 21/12/09.

Quote:
9.1 : INCREASE OF PENSIONS

a : Maximum increases in Pensions, 2.5% for CAB, 5% for New Benefits, 10% for Old Benefits.

b : The % increase is the Index published for the previous year ended 31st Dec.
"Index" means the Govnt Index of Retail Price (RPI) or such other published index of prices which the Trustees and the BBC agree will be the index instead.

So as the government are to use the CPI index (instead of RPI) for the calculations of Benefits in future, I should think that Pension schemes will do the same (including the BBC).
Of course if it becomes law to use the CPI then the Trustees will have no option but to use it.

At least It would appear that we (Pensioners) will still get an increase albeit CPI.

As for pay increases in the BBC during the six year period ...well there will be some agreement made I would have thought with the unions i.e rate of inflation (CPI or less) or a pay freeze for a set period. It's going to be hard though as the employee pension contributions will have been increased by then!

Before I sign off I would like to echo David's request for someone from BBC Pensions who could lay out the facts on this platform.

Further to my last posting I am still of the impression that in the ranks of Pensioners the one's being paid an Incapacity Pension are the only group who can have their Pensions cut/stopped..in this present climate will this come to the fore?
Hopefully we can get authorative answers in the not too distant future on these pressing subjects.

Title: Re: Pension Question.
Post by JohnW on Dec 12^th, 2011, 7:15pm

Sorry! Perhaps I should have posted here rather than start a new thread! So apologies to the site Admins. ;)

But just to confirm ... that Jan Killick (Head of Pensions) has confirmed that "pensions in payment from the Scheme will continue to be linked to the RPI for Old Benefits, New Benefits and CAB 2006 members, despite the Governments decision to base its increases on the CPI."
She says "Within the Scheme's Trust Deed and Rules it makes reference to RPI, so that is hard-wired into the Scheme's Rules and is not something that can be changed." :)