BBC Must Pay $1.21 Billion into Staff Pension Scheme

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Funds will be taken from the amount raised from the license fee

LONDON — The BBC will have to pay £740 million ($1.21 billion) over the next four years into its employee pension scheme, which has accumulated a $3.27 billion deficit.

The U.K. pubcaster, which had previously said the pension shortfall would be $614 million, will take the money from the amount raised from the license fee, which all Brit TV viewers are forced to pay, according to a report in the Guardian.

The BBC has opted not to up employee contributions to the pension scheme in a bid to avoid the industrial action that followed reforms to the scheme in 2010.

The pension deficit has almost doubled from $1.8 billion in 2010 due to the economic downturn and longer life expectancy.

“External factors have caused the BBC’s pension deficit to increase significantly since 2010, but without recent reforms to staff benefits the BBC would now be facing an even bigger problem,” said a spokesman for the BBC Trust, which is the organization’s governing body.

“Before approving the BBC’s new funding plan, the trust considered the various options and set parameters around what would be acceptable given our responsibility to license fee payers. We concluded that this plan provides the best solution because it addresses the shortfall in an affordable and manageable way.”

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  1. bettyhill says:

    The BBC is one of the old boy’s schools. They think that they can do whatever they want (and they can as their masters the government do not alter the status quo) and don’t think that there is anything wrong in using the company’s money for themselves and for their ‘personal’ embellishments. Never trusted Patten and where being one of the old boy’s network, always knew that he would be looked after.

    But the greater question is, do any of the controlling classes really think much of the people they control and who provide all the goodies through taxation and licence fees for them? I think not as Fracking, banking, parliamentary expenses et al, all show that they are in it for themselves and it is a fallacy and sheer lie that they care about the lot of the people. Indeed the people are just viewed as the ‘cash-cow’ to give them everything that they wish whilst the people get poorer by the year through the whole dire process of extorting money under false pretences. Indeed these people in power really do live in a parallel universe, cocooned against any hardship whatever from birth to grave – http://worldinnovationfoundation.blogspot.co.uk/2013/12/does-western-governments-support-people.html

    Dr David Hill
    World Innovation Foundation

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