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DG email on pensions (Read 2820 times)
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DG email on pensions
Aug 10th, 2010, 6:41pm
 
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Dear all,
Following yesterday’s session about our pension proposals, there were a few things I wanted to say as we head into the middle of the summer.
The first is to reiterate what I said yesterday.  The consultation about the BBC’s pension arrangements is real and we’re listening carefully to what people across the BBC are telling us - and to the anxiety and anger many of you are feeling. 
The economic realities that led us to make the proposals have to be confronted - not just the current deficit which is between £1.5 and £2 billion pounds, but the longer term pressures which the BBC Pension Scheme faces.  But we’re looking hard at the concerns you’ve been raising and, if there are changes to the proposals that can go some way to addressing those concerns but which also tackle the fundamental issues, we’ll adjust the proposals accordingly. 
We’ll come back to you at the start of September with a response to the consultation so far, and we’ll make sure there is plenty of time for you to consider and give your reaction.  Over the coming weeks, we also intend to put a lot more background information out there - this has been a frequent request in many of the seminars ¾ and to lay out some of the other options we considered as we developed the proposals.
Something else which came up again yesterday is the additional pension payments made to some senior staff.  These payments have a long history:  they were introduced after the Inland Revenue imposed a cap on pensionable earnings in 1989 and they were intended to compensate people who joined the BBC in senior roles after that date and who otherwise would have received lower pension contributions from the BBC than colleagues in equivalent roles who joined before 1989. 
But many of you have made the point that, given that the BBC is reviewing all of its other pension provisions, it is only right that these payments should be reviewed too.  We agree.  We are reviewing them and will ensure that any changes take effect at the same time as the other pension proposals.  The review will take as its starting point the principle that pension provision across the BBC should be as fair and consistent as possible, no matter how senior the staff involved.
Whilst all this has been going on, it is worth highlighting the reason we are here – serving our audiences.  Our strong summer on the air has continued with a brilliant Proms season and some stunning output from Sherlock to Between Life and Death to Rev.  Meanwhile at the end of August, I’ll be laying out my view of the future of TV and making the case for the BBC in the MacTaggart lecture up in Edinburgh.  It’s time to take on some of the BBC’s critics head on.     
Summer is a very busy period for many people at the BBC, but I hope that it’s enjoyable as well as productive for you and that you’ll get to spend at least some of it with friends and family.
All the best,

Mark Thompson
Director-General
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