BBC to cut pensions
Media unions have condemned proposals by the BBC to radically change the pension provision for current and future staff at the corporation from December this year.
The move is the first in what will more than likely be an all-out assault on pension provision in public corporations and organisations.
The proposed key changes would see the defined benefit pension/career average schemes closed to new employees from December 2010.
For current members future increases in pensionable pay would be capped at a maximum 1% a year irrespective of the level of any pay award or increases following staff promotions.
Gerry Morrissey, general secretary of broadcast union BECTU, said: “The restriction on future pensionable salary increases of 1% will permanently break the link between an individual’s salary and their final pension.”
The BBC has conceded no change to the retirement age, no changes to accrual rates and no further increases in employee contributions. The proposals are now subject to a 90-day consultation.
Sue Harris, organiser at the NUJ journalists’ union, said it was “a significant reduction in the employment benefits package which sets up an unfair two tier system that may ultimately threaten the viability of the defined benefits schemes altogether”.
It is anticipated that negotiations with the BBC will continue throughout the 90-day consultation period, which is set to conclude in September.