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Jasmine Bligh – Pensions Visitors Children’s proposals conference TV is 60 page 2 2010 page 8 page 3 October 2010 Number 7 With highlights from Ariel Jasmine Bligh – elegance amid the adventure page 6 News BBC outlines a third way for pensions reform details of CAB 2011, but it is proposing that Negotiations between the BBC and existing staff it should have a pensionable age of 65, that pensions would accrue at the same rate as continue as part of the consultation process over the current CAB section (1.67% of salary per year, in other words 1/60ths), and that pensions proposed pension changes. in payment should increase by the lower of Consumer Price Inflation and 2.5%. In the latest development, Mark Thompson If a current member opted for CAB 2011, To be affordable, member contributions to sent an email to all BBC staff on 16 September, they would leave the existing Defined Benefit CAB 2011 will have to be higher than for the outlining a ‘third option’ that has been section in the BBC Pension Scheme. As a result, current career average scheme, for which proposed by the organisation. they would become a ‘deferred’ member and the they are 4% of salary. For CAB 2011, the Current members were being given a choice pension they had built up to date at that point BBC is proposing that member contributions either to stay in the Defined Benefit scheme but would rise broadly in line with inflation. They should be 7% of salary. with a 1% annual limit on future pensionable would then immediately join the new CAB In order to give members time to consider the PROSPERO salary; or to transfer to a new Defined 2011 arrangement in which they would build new proposal, the BBC has extended the Contribution (DC) plan. The proposed limit up benefits year by year for their remaining time consultation period to run until 15 November. October 2010 has been one of the most controversial elements at the BBC. The benefits will be based on their Mark Thompson concluded: ‘CAB 2011 is an of the proposal, while members are also wary pensionable salary. There would be no limit on important addition to [our] proposals. It is not about the risk of transferring to a DC plan. The how far their pensionable salary could grow, a panacea, but in the terms I’ve set out above it BBC has therefore proposed a third option for either because of annual or other pay rises or is affordable, and I believe it goes a significant Prospero is provided free to current members – a new Career Average because of promotion. way to addressing the concerns you’ve expressed Benefits arrangement which is called CAB 2011. The BBC is still working through the full to us during the consultation.’ retired BBC employees. It can also be sent to spouses or dependants who want to keep Chair of the Trustees sets the record straight in touch with the BBC. Jeremy Peat, Chair of Trustees, sent this letter to provision as it wished to reduce cost, risk and about setting up an additional career average It includes news about Ariel regarding the BBC’s latest pension proposals, unpredictability whilst continuing to provide benefit section which it intended to ask the which readers of Prospero may find interesting: an affordable salary related pension scheme for Trustees to administer. On the Friday before former colleagues, pension employees. It indicated that it would share its Mark Thompson’s 13 Sept email to staff, I Dear Sir thinking with the Trustees at the appropriate received a letter from the BBC which included issues, and developments at I have been asked for clarification on some of time. The Trustees were given no further details the same outline details of CAB2011 as were the BBC. Prospero includes the statements made at the members' meeting and there were no discussions with us until we sent to staff. It went on to say that it was the on 14 September, in the light of comments were informed about the1% cap proposal, in BBC’s intention, subject to the Trustees classified advertisements. made during the ring main session with staff confidence, shortly before members were told. agreement, that the alternative career average To advertise in Prospero or on 16 September, as there may appear to be The BBC made it clear to the Trustees from pension option would be set up as a separate some inconsistency in what Zarin Patel and the the outset that, as far as the 1% cap was section within the Scheme. the BBC Staff magazine, Trustees have said. concerned, it intended to do this contractually, So, yes the Trustees do know that the BBC I believe that this stems from a difference in without changing the rules. By taking this would like them to administer CAB2011 but, Ariel, see page 12. perception and interpretation by the BBC and route they effectively by-passed the Pension by the BBC’s own admission, the fine detail the Trustees; rather than any contradiction. Trustees. We took legal advice from a leading has still to be worked out before the Trustees However, clarity in these important issues is QC, who confirmed that the Trustees had no and their advisers can consider the implications Subscription information for clearly essential. power to block the proposal. Had it been of agreeing to administer a new section and a Ariel is on page 12. Zarin Patel said that the BBC had been necessary for the Trustees to approve a cap on decision is reached. At this stage it is a notice openly discussing pension reform with the pensionable salary increases by way of a rule of intention not a formal request. Trustees keeping them informed all the change then, as I said at the members' meeting, We face great challenges in dealing with the way through. the Trustees could not and would not have pension deficit but I am confident that we can Staff could have taken that to mean that the agreed to make such a change. build on the good track record for collaborative Trustees were, at an early stage, aware of and Zarin Patel also said on Thursday that working between the Trustees and the BBC consulted on the proposal to cap the future she wanted CAB2011 to be administered mentioned by Zarin. Along with colleagues on growth of pensionable pay at 1% p.a. They by the Trustees and that the BBC had written the Trustee board, I look forward to discussing were not. to them ‘formally’ asking them to consider the new section with Mark, Zarin and Lucy. In December 2009 the BBC informed the administering it. Jeremy A Peat Trustees that it was reviewing pension The BBC did inform us that it was thinking Chair of Trustees CROSPERO 151 1 2 Editorial contributions Devised and compiled by Jim Palm 3 4 5 Complete the square by using the clues; these apply only to words running across. Then take these words in numerical order and extract Write to: Prospero the letters indicated by a dot. If your answers are correct, these letters 6 7 8 BBC Pension and Benefits Centre will spell out the names of two vintage BBC programmes. 910 Broadcasting House Please send your answers in an envelope marked Crospero to Cardiff, CF5 2YQ The Editor, Prospero, BBC Pension and Benefits Centre, Tel: 020 7765 1414 Broadcasting House, Cardiff CF5 2YQ by July 16. 11 Clues: 1. Just open (4); 2. Welcome spots (5); 3. Goes with ‘neither’ 12 Email [email protected] (3); 4. Mite (3); 5. Zero (3); 6. Horse (3); 7. Exclamation (3); 8. Crafty (3); 9. Valve part (5); 10. Council levy (4); 11. Grasps (4); 12. e.g. Leech (11); 13. Own of old (4); 14. Decorative border (4); 15. Affirms (5); 16. 13 Please make sure that any digital Beverage (3); 17. Metal (3); 18. Fifties dance (3); 19. By all means (3); 20. Devoured (3); 21. Mineral (3); 22. Makes crooked (5); 23. Repair (4) pictures you send are scanned 14 15 at 300 dpi. Solution to Crospero 150: Solution to Crospero 150: Facet, Alto, ABTA, Fayre, Ahab, Aim, Honey, Gnat, Sure, Arid, Tact, Steel, Yes, 16 17 18 Cope, Apes, Trap, Tag, Earn, Neaten, Coir, Lord, Acid, Scot, Kangas, Coat, Pal, Caen, Moot, Amen, Nab, Stuck, Bier, Come, Walk, Dart, Venue, Ice, Cord, Hides, Moth, Rest, Medea. The hidden words were 19 20 21 CLAYHANGER, CLEOPATRA and CLAVICHORD, all commencing with CL which are the Roman numerals for 150. 22 23 The winner of Crospero 150 is Mrs A Page of Bishop Sutton, Bristol. 2 • • October • 2010 BBC Pensions Conference highlights key issues for pensioners produce a range of audio tapes and large format Around 130 former BBC colleagues – now volunteers in the BBC Visiting print when requested to. For example, did you know that Prospero is available on audio tape for Scheme – gathered in Cardiff in late August to brush up on their people with sight impairment? knowledge of the issues that are important to the pensioners. What’s in a name? During the conference, the visitors also spoke The two-day conference gave the visitors a responsibility for Prospero , using an external born before 6 April 1950 you could claim a free at length about what the Visiting Scheme means chance to say hello to familiar faces and agency to manage the contributions and design bus pass at age 60. If you were born after this and how it can be improved. welcome some new ones as well.
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