The newspaper for retired BBC Pension Scheme members • December 2017 • Issue 6 PROSPERO REMEMBERING MICHAEL BOND PAGE 7 PENSION SCHEME | PENSIONS PENSIONERS’ LIAISON MEETING 2018 This year’s PLM at the Council Chamber, Broadcasting House, was attended by over 60 BBC pensioners, who heard from two trustees and members from the Pension Executive who oversee the management of the BBC Pension Scheme (the Scheme). t was an engaging and interactive meeting where The floor was then opened up to questions, and the updates were provided in relation to the Scheme’s BBC pensioners asked an array of questions covering Ifunding, investments and service to members and everything from investments and data security, to PIE provided an open forum for pensioners, where pertinent (pension increase exchange) and obituaries in Prospero. and relevant questions were addressed to the speakers. One pensioner questioned the Scheme’s investment in The session was introduced by Bill Matthews, chair of companies that ‘avoid UK tax’ (the single largest the Trustees, who gave an introduction and looked at corporate investment being Amazon, for example), the highlights from the Scheme year – which included while another asked whether the Scheme was the completion of the 2016 actuarial valuation. contributing to the decline of the high streets by raising rents for retailers. Phil from the investments team ‘The annual valuation is a huge effort that we carry out answered: ‘We’re not here to be moral arbiters, we’re on a three-yearly basis, where we assess how much the here to get the best returns. These companies all obey Scheme is worth and how much it needs to pay out to the laws that are applicable to them.’ members. It’s a full 18 months of effort, where we have complicated discussions about actuarial assumptions – Transfers out and of course we have to involve the sponsor, the Another pensioner asked whether the Scheme was employer, because between us (i.e. the Trustees and the promoting transfers out – which would ultimately save Scheme MNT Rostam Kilgour. BBC) we have to make good the deficit over an the Scheme money by reducing its liabilities. Ian appropriate period of time. That involves obtaining responded: ‘A lot of schemes are reported to be common agreement of some of the factors, and requires the Scheme’s assets have increased from £9.3 billion to struggling to cope with transfer requests from the employer to look at what it can afford. It would be a record £15.8 billion, and investment returns over the members. However, we are not and have not seen a very simplistic to say ‘Write us a cheque for £1.6 billion’ last 12-month, 3-year and 5-year periods have exceeded significant increase in transfer requests, and we are but that’s not really feasible, so we’re very pleased that the benchmarks set by the Trustees. ‘It’s been a certainly not promoting it. The increase in transfers is after a long period of negotiations we have got to a point remarkable time to have been an investor,’ he said. driven by the change in legislation that gives people where we have a funding plan, requiring, on average, Most of the Scheme’s investments have increased in more freedom and choice over how to use their pension payment from the BBC of c£195 million a year.’ value significantly. savings. Anyone in our Scheme whose transfer value is Uncertain times valued at £30,000 or more is legally required to take ‘We have faced some uncertain times from an regulated financial advice, and we won’t agree to a investment perspective over recent years – Europe was transfer unless we are satisfied that advice has been It would be very simplistic about to break apart, there were stories of low sought. There is certainly no incentive or to say ‘Write us a cheque economic growth, low productivity and challenging encouragement from the Scheme.’ for £1.6 billion’. times – and in the most recent years we’ve had the US Details on the 2018 PLM will be published in the presidency and EU referendum which could have been Summary Report issued to all members in Summer disruptive, but as you can see, 2016/17 has been one of 2018, so please do look out for it if you are interested Bill said that the in-house investment team have done a the finest years on record for the Scheme and we made in attending. fantastic job with the Scheme’s investments to help £3 billion in the course of one year.’ bring down the deficit, but there are challenging times The average five-year return of 12.8% is, said Phil, much ahead regarding future growth rates. He then better than we would have expected – kind of unheard myPension Online PENSION introduced Ian Cutter by saying it was a big bold strike of over that period of time – but as to the future, TRUST LTD for regional accents, him having a Scottish accent, then Age profile of users we’ll have to see what happens but we could be at a Ian on next with a Welsh accent. turning point. Scheme survey The fourth and final speaker was Rostam Kilgour, the Ian, who heads up the Pension & Benefits Centre in most recently appointed Member Nominated Trustee Cardiff, spoke about the Scheme’s renewed focus on (MNT), who was elected by the Scheme’s active member communications, with the launch in the members. He spoke about his reasons for standing as an summer of a new brand for the Scheme and the roll-out MNT and his experiences of being a trustee since taking of myPension Online, the new member self-service up this role around 18 months ago. ‘I arrived just as the website. He also gave notice that the Scheme would be latest valuation was getting under way, so it’s been a conducting its biennial customer survey next year. very busy period. I knew I would be putting myself Ian showed an interesting slide (recreated on the right) forward for what would be a challenging role. that showed the age profile of members using Common link myPension Online. While people often think that the The slide shown by Ian Cutter in his talk. ‘Being a Trustee means that people have put their trust older generation are less likely to go online, the slide in me,’ he said. ‘Normally we trust experts to look after showed that the vast majority of myPension Online things for us, yet for something as important as a users were in the 60-75 age group. Remember, you can register for myPension Online pension you are asked to put your trust in people like at bbc.co.uk/mypension. If you have lost your Ian encouraged everyone to return the customer survey me who are not experts. registration details, please call the Service Line when it is sent out next year. ‘It really does help us to ‘However, I think we provide something different, on 029 2032 2811. tailor our service to members, and we will be providing because we share a common link with members – it online and also as a paper copy for those who prefer the link being that we have all worked for the BBC. it in that format.’ So, when we sit on the board and are given complex The next speaker was Phil Gillman, the Scheme’s financial information, we try to ask the questions that pensions investment manager. Over the last five years, we think members will want answered.’ 2 WIN PROSPERO £10 Prospero is provided free of charge to retired Scheme members, or to their spouses and dependants. Christmas Crospero by Jim Palm Prospero provides a source of news on former colleagues, developments at the BBC and pension 1 Complete the square by using the clues; these apply • only to words running across. Then take these words issues, plus classified adverts. It is available online at 2 3 in numerical order and extract the letters indicated by bbc.co.uk/mypension • • a dot. If your answers are correct, these letters will 4 5 To advertise in Prospero, please see page 12. give you a Christmas ruler. • • 6 7 Please send your answers in an envelope marked Please send your editorial contributions, or • • comments/feedback, to: 8 9 Crospero to: The Editor, Prospero, BBC Pension and Prospero, BBC Pension and Benefits Centre, • • • Benefits Centre, Broadcasting House, Cardiff CF5 2YQ 9 by Monday 15 January 2018. The winner gets a Broadcasting House, Cardiff CF5 2YQ • £10 voucher. Email: [email protected] 11 10 • • 1. Indian city (9); 2. Scottish island (4); 3. Irish county Please make sure that any digital pictures you send 11 12 (4); 4. Record (4); 5. Sports brand (4); 6. Eastern are scanned at 300dpi. Please also note that the • • capital (5); 7. Not active (5); 8. Droop (3); 9. Brief halt 14 13 14 maximum word count for obituaries is 350 words. (7, 4); 10. Fish (3); 11. Male voice (5); 12. Fixed point (5); • • • 15 16 13. Slender (4); 14. Down with him! (1,3); 15. Winged • • (4); 16. Summit (4); 17. Made harder (9). 17 Contents • Letters 4-5 Mystery Sudoku Memories 6-7 - From pictures to papers to books Complete the grid so that every row, column and F I V M - ITMA revisited 3x3 box contains the letters EFGILMORV in some - Remembering Michael Bond order. One row or column contains a five or more M O V E letter word, title or name with a BBC connection. O M G F I Solve the sudoku to discover what it is and send your answer to: The Editor, Prospero, I R BBC Pension and Benefits Centre, Life after Auntie 8 Broadcasting House, Cardiff CF5 2YQ V E I R O - Bush House reunion by Monday 15 January 2018.