The BBC has announced plans to change its pension scheme after the deficit rose from the 2008 figure of £270m up to £2b .The new scheme which is not open to new joiners, will be called the final salary scheme, and will adjust its terms so that staff pension salaries will increase by less than 1% per year.
Robert Peston, the BBC business editor, stated that the new plan may be a blueprint for pension plans for the public sector in the future.
Peston stated the BBC is a public sector organization that is proud of staying independent of the Government and its plans may influence the way that the coalition Government looks at reducing the liabilities and costs of final salary pensions in other public sector areas.
However, Bectu, the broadcasting union responded negatively to the new proposals, which have a three month consultation time period. Gerry Morrissey, the union general secretary, stated that they plan to break the link that exists between an individual’s final pension and their salary.
He also stated that new employees will not be attracted to the new employment benefits package and that the BBC will have problems finding staffers with the correct skill levels especially given the fact that the BBC will need to start recruiting a large amount of people from Salford in January of 2011.
Under the new changes, an employee will not see a change over one percent a year in their pension even if they receive a high pay rise.