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Come Rain Or Shine 60 Years of TV Weather Forecasts Page 9 The newspaper for BBC pensioners – with highlights from Ariel online Come rain or shine 60 years of TV weather forecasts Page 9 February 2014 • Issue 1 blue screen radio NHu treat of death? Cumbria’s 40th Page 7 Page 7 Page 8 NEWS • MEMoriES • ClaSSifiEdS • Your lEttErS • obituariES • CroSPEro 02 bbC PENSioNS BBC Pension Scheme shortfall BBC tops pension scheme increases by £900 million league table Last month, Bill Matthews, the Chairman of the Trustees of the BBC Pension Scheme, wrote to all The BBC shares top place in a league Scheme members to advise them of the results of the 2013 actuarial valuation – the triennial ‘health table of Britain’s most responsible pension schemes, in terms of keeping check’ on the pension scheme’s funding position. members informed about the companies and practices their money is financing. he results show that the Scheme’s gilt yields continue to be much lower than which is set out in the report to members, The charity ShareAction reports shortfall (i.e. the amount by which in 2010. strikes a balance that is both appropriate on how well the biggest occupational the Scheme’s assets fall short of ‘Falling yields increase the shortfall for members and does not undermine the pension schemes measure the the amount needed to pay future because we calculate the cost (in today’s BBC’s ability to support the Scheme,’ said the environmental and social impact of the Tbenefits) has grown to £2bn. But the figure money) of members’ benefits with reference Chairman, who assured members that there money they invest on their members’ is an improvement on the £2.6bn deficit to bond and gilt yields. When these go down, was no danger that the Scheme would not be behalf. The BBC Scheme scored 35 recorded in the Scheme’s 2012 annual report the expected cost of benefits (i.e. the value able to pay out to its pensioners in the future. points out of 40 on these measures. It to members. of liabilities) rises. A 1% decline in gilt yields In the report, the Trustees say they will was specifically praised for a number of The Chairman said that although the adds around £1.5 billion to the expected cost continue to derisk the Scheme, moving actions, including publishing its top 100 results were ‘disappointing’, they were not of providing the pensions built up to date.’ towards more bonds and low risk investments equity investments on its website. unexpected, given the economic conditions. while retaining sufficient assets which can The increase in the shortfall is largely as a 13-year plan generate investment returns to pay pensions result of the way that the Scheme’s liabilities The Trustees have agreed a recovery plan as they fall due. In his introduction to the are calculated (the liabilities being the cost with the BBC which is projected to make report, the Chairman wrote that this action of the benefits that have been promised good the shortfall over the next 13 years. ‘will, over time, give greater certainty over to members), as well as the trend towards The BBC’s deficit contributions over the investment returns to tie in with the people living longer. next four years will total £740m, compared fact that the Scheme has a greater number Over the last three years, the investments to the £375m that was due under the of pensions to pay.’ have performed better than assumed in the existing schedule that was agreed in 2010. A copy of the report is available here: 2010 valuation. However, interest rates and ‘I believe the schedule of payments, www.bbc.co.uk/mypension/ Trustee Update on State benefits election result Chancellor George Osborne delivered the 2013 is being introduced to help the estimated administration of Inheritance Tax (IHT) by Autumn Statement in December last year. 12 million pensioners who won’t be eligible for allowing individuals to apply for probate and the higher, single-tier pension coming in from submit IHT accounts online. The service is Married couples tax break 2016. The details of the scheme will be set out expected to become available during 2016. From April 2015, married couples (or those in closer to the time of implementation. Granny flat tax a civil partnership) will be able to transfer up to basic State Pension From April 2014, a council tax break begins £1,000 unused personal tax allowance to their From April 2014, the full Basic State Pension to apply to households that include an annexe higher-earning spouse. This will only apply to will increase by £2.95 per week, to £113.10. or ‘granny flat’. Until now, this would have couples where one partner either does not pay The full Basic State Pension in 2014/15 will be attracted separate council tax in addition to income tax or their income is lower than the around £8.50 a week higher than it would have the tax paid by the main household. From personal allowance, and the other partner is not been if it had been increased only in line with April 2014, a 50% discount applies. a higher-rate taxpayer. average earnings growth since 2011/12. Property tax relief The tax break will be introduced from attendance allowance A significant scaling-back of the tax relief April 2015, and couples will receive the From April 2014, Attendance Allowance will applying to people who own property other benefit by the summer of 2016. They will increase to £81.30 a week (higher rate) and than their main home kicks in from the David Gallagher have to apply for the benefit online. £54.45 a week (lower rate). beginning of April 2014. This could hit This new proposal is not to be confused with Winter fuel allowance buy-to-let investors, holiday-home owners and David Gallagher has been elected as the Married Couple’s Allowance, which is for After 31 March 2014, it will no longer be long-distance commuters who live in a second a Member-Nominated Trustee for a married pensioner couples where one partner possible to claim the first three available years property during the week. six-year term from 1 May 2014 to was born before 6 April 1935. This can be of Winter Fuel Payment (WFP). This affects the Under the old rule, a relief – known as 30 April 2020. David received 835 worth between £304 and £791.50 a year, years 1997/98, 1998/99 and 1999/00. If you ‘principal private residence relief’ – enabled votes out of the 1,530 votes cast by based on current thresholds. met the criteria for WFP in those years (if you owners to exempt gains made in the last active members of the Scheme. topping up additional State Pension were aged 60 or over in the ‘qualifying week’) three years’ ownership from capital gains David was the joint unions’ candidate, From October 2015, a new class of voluntary and you have not already received your WFP tax, provided they had at one time used the supported by both the NUJ and BECTU. National Insurance Contributions (Class 3A) payment for them, you must claim by 31 March property as their main home. From April only He is a longstanding workplace rep will be introduced to allow current pensioners, this year in order to receive WFP. the final 18 months’ gains can be exempted. specialising in pension issues. He has a and those who reach State Pension age before inheritance tax Next budget maths degree and 25 years’ experience of 6 April 2016, an option to top up their In other general news, HMRC will be investing The next Budget will be set out on working in radio. Additional State Pension record. The measure in a new online service to support the 19 March 2014. Please send your editorial contributions, or comments/feedback, to: Prospero, BBC Pension and Prospero is provided free of charge to retired BBC Benefits Centre, Broadcasting House, Cardiff CF5 2YQ. employees, or to their spouses and dependants. Email: [email protected] Prospero provides a source of news on former Please make sure that any digital pictures you send are colleagues, developments at the BBC and pension scanned at 300 dpi. issues, plus classified adverts. To advertise in Prospero, please see page 12. The next issue of Prospero will appear in April 2014. To view Ariel online, please visit www.bbc.co.uk/ariel. The copy deadline is Friday 28 February 2014. PROSPERO FEBRUARY 2014 MoNEY baNK 03 Leaving the BBC: CONTACTS Visiting Scheme If you would like a visit or information on how was it for you? how to become a volunteer visitor, please ring the Service Line on 029 2032 2811. Queries Nick Whines, the BBC Pensioners’ Association Membership For benefit and pension payroll queries, Secretary, writes about a new project. call the Service Line on 029 2032 2811 or email [email protected] Prospero ver the last two years the BBC immediately or was life never quite the same In the next couple of years, as we approach To add or delete a name from the Pensioners’ Association has been again? Do you, like me, still dream about the charter renewal, the debate about the future distribution list, ring the Service Line on inviting ex-staff to contribute BBC years after leaving? of the BBC will intensify. It is very clear the 029 2032 2811. Prospero is provided free their memories of working for From what we have been told previously, BBC has real enemies both in the media and of charge to retired BBC employees.
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