UK - The BBC has revealed that contributions to its £6.5bn final-salary pension scheme will rise to ensure its survival after a massive drop in its surplus.
The broadcaster said a review by its actuary, Watson Wyatt, showed that the surplus had fallen by almost 30% since 1999 to £441m and that it would “run out” in 2006-07.
A statement to members said that only higher contributions would ensure that the surplus would continue beyond 2007.
From April 2003, the corporation will increase its contributions by 0.5% each year, so that by April 2005 it will be paying 6% of pensionable salaries into the scheme.
In April 2004 staff contributions will also rise by 0.5%, from 4.5% to 5%, and there will be another increase in April 2005, to 5.5%.
Contribution rates will be reviewed again after the 2005 valuation.
In a message to BBC scheme members, head of pensions Rhoslyn Roberts said: “Despite other large companies announcing the closure of their final salary pension schemes, the BBC intends to keep its scheme and is proposing this action to help ensure its long-term viability.”
BBC director-general Greg Dyke assured staff in September that there were no plans to replace the final salary scheme with a defined contribution plan.
Ex-BHS owner Dominic Chappell has been ordered to pay a total of £87,000 in fines and court costs after he was found guilty of failing to provide The Pensions Regulator (TPR) with information.
The Department for Work and Pensions (DWP) has said it while believes in the benefits of consolidating defined benefit (DB) schemes, there are significant issues to overcome.
There is just one week left to register to enter the Workplace Savings and Benefits Awards 2018.
Nearly a third (32%) of employers believe new technologies, such as augmented and virtual reality, will play a part in benefits communications, latest research from Aon Employee Benefits reveals.