UK - The BBC Pension Scheme has revealed a massive £1.07bn FRS17 deficit, compared with a modest surplus last year.
The scheme has seen a huge fall in the value of its assets but BBC director of finance, property and business affairs John Smith said there were no plans to close the scheme to new members.
“This scheme is a key part of the remuneration offer for BBC staff and the corporation has publicly confirmed its commitment to the scheme and that it will remain a DB scheme.”
Smith blamed the falls on the stock market and a fall in interest rates which had led to an increase in the theoretical present value of future pension liabilities.
Its annual report shows the scheme costs £33m per year – less than 1% of income.
Earlier this year, the corporation increased its contributions from 5.5% to 6% of pensionable salaries with staff contributions rising by 1 point to 5.5%.
Another contribution review is due after the scheme’s 2005 actuarial valuation.
The Pension Protection Fund (PPF) is consulting on proposals to charge a "risk reflective" levy for commercial defined benefit (DB) consolidation vehicles.
The funding gap across FTSE 350 schemes could be slashed by as much as £275bn if schemes look beyond traditional ways of creating value. Victoria Ticha examines how
There will be "many flavours" of defined benefit (DB) consolidators but consolidation will only be the right answer for a minority of schemes, Alan Rubenstein says.
Work and Pensions Committee (WPC) chairman Frank Field has questioned the regulator on what lessons it can learn from the experience of the Kodak Pension Plan No.2 (KPP2).