The newspaper for BBC pensioners A first-class voyage Page 7 Dec 2016 • Issue 6 A series of The Baroness Wartime fascinating of Beckenham Broadcasting jobs Page 3 Page 6 Page 8 NEWS • MEMORIES • CLASSIFIEDS • YOUR LETTERS • OBITUARIES 02 BACK AT THE BBC 2016 Pensioners’ Liaison Meeting BBC Pension Scheme pensioners attended this year’s Pensioners’ Liaison Meeting, which was held on Tuesday 18 October 2016 from 11am – 1pm at The Radio Theatre, Broadcasting House. he meeting is open to all BBC predominantly invested in equities in 2006, pensioners to attend. It’s their but now equities account for only around opportunity to put questions to the 29% of assets; the remainder being in CEO of BBC Pension Trust Limited bonds and alternatives such as property. T(the Trust company that has ultimate ‘The transition has worked well for the responsibility for the Scheme) and other Scheme,’ says James. ‘We have been able to people involved in running the Scheme. sell equities at good levels and not had to This year’s speakers included John Cullen, pay too much for bonds.’ The net result is the new CEO, who has been in his post since that the Scheme’s value has increased from March; Leslie Huss-Smickler, the elected £4.6bn (2006) to £12.9bn (2016). pensioner Trustee; and PLM-regular James James also touched on the recent fall in the Duberley (Director of Pensions Investment). value of the pound. ‘Luckily the Scheme has John introduced himself to the audience significant assets denominated in other as a ‘pensions person’ rather than a media currencies, so when the pound goes down person; ‘It has been a very interesting our assets become more valuable in pound experience getting to know the BBC as well terms than they were before.’ as getting to know the Pension Scheme and From left to right: David Wall, Ian Cutter, John Cullen, Sandra Phillips and James Duberly. One of James’ slides showed the Scheme’s how that works too.’ top five equity holdings: He described his role as acting as the contact point between the Trustees and the Trustee who left the BBC 20 years after Investment returns Amazon.com inc £40.4m BBC, but also as the contact point between 16 years of service in the pensions department. James Duberly was the final speaker, looking the Trustees and their various advisers. He was elected in February 2015 as the at the Scheme’s investments over the year to Illumina Inc £36.5m As part of his presentation, John gave an pensioner nominated Trustee, ‘which was March 2016… ‘but as you know a lot has Facebook Inc £35.4m a great honour’. happened since then,’ he said. overview of the management team who Tencent Holdings Ltd £31.6m run the Scheme (pictured on the right): Leslie reiterated that he was elected The Scheme’s primary objective is to to represent all members of the Scheme, pay everyone’s pensions, with a secondary Baidu Inc £30.0m David Wall – which means that he must act in the best objective of being fully funded by 2026. James said: ‘Although these seem like big Head of Finance interests of the entire membership and not It relies on deficit contributions from the numbers, each of these single investments David leads the Finance team who process just one group (such as the pensioners of BBC and investment returns to achieve that. represents about 0.25% of the Scheme’s all of the Scheme’s financial transactions, the Scheme). James looked at key markets over the last value. The Scheme has holdings of individual including payments to over 23,000 pensioners. 10 years; equities as measured by the FTSE bonds and properties that are much larger They also produce the Scheme’s Annual PIE option All Share Index have risen from 4,000 to than its individual holdings of equities.’ Report and Accounts. The team is currently Leslie also provided an update on the Pension touch 7,000 recently… but they almost At the end of the seminar, John thanked working on projects to streamline some Increase Exchange (PIE) option that was halved in 2008 when the financial crisis hit. everyone for coming and then opened the accounting processes. offered to eligible Old Benefits pensioners in Also noteworthy over that period is the 2015. The initial batches are now complete. tremendous decline in bond yields. ‘When I floor to questions. Ian Cutter – A further group of eligible pensioners, started making investments in gilt markets BBC pensioners being what they are, Head of Pension Shared Services who couldn’t be included in 2015, will have for other companies, which wasn’t that it was a lively and informative hour Ian is responsible for pension administration recently received their option packs and long ago, it was very unusual to find a UK that followed! services. His team liaise with members about will be supported in making their decision Government bond that had a coupon – Questions covered investments, the PIE their benefits and with the volunteer visitors with independent financial advice paid for an annual payment – of less than 10%. option, pensions increases, the PPF levy around the country who maintain contact by the BBC. Now it gives you 1%, or maybe 1.5%. and also the publication of abridged death with the pensioners in their area. Ian is See the December 2015 edition of Prospero So there has been this amazing decline in notices in Prospero so that readers can find currently working to bring more self-service for further detail about the PIE option. the yield on Government bonds that goes out about former colleagues who have online access to members. hand in hand with the financial crisis and died. On the latter point, John said this is Valuation quantitative easing.’ something that has been discussed by the Sandra Phillips – Leslie then handed the microphone over to Over that period, the assets that the Pensions Department in the past but they Trustee Secretary John, to speak about the Scheme valuation Scheme invests in has changed too – it was will reconsider it. Sandra helps the Trustees meet their legal that is currently being conducted. requirements on governance, which includes A valuation is where the Scheme actuary organising Trustee meetings and appointments compares the money in to the Scheme How the Scheme’s investments have changed since 2006 and minute taking. You may have seen (through contributions and investment mailings from Sandra asking for Trustee earnings) with the money being paid out of nominations from members or pensioners the Scheme and considers whether, over the when there is a vacancy for either a member long term, the Scheme will have enough or pensioner nominated Trustee vacancy. money to pay all the pensions that have been promised to members and their dependants. James Duberly – ‘The BBC Scheme is now mature, which Director of Pension Investments means in some years there will be more James leads a team who manage a wide money going out than is coming in,’ said range of assets from Government bonds to John. ‘As it continues to mature, with more private equity and property with a high pensioners and fewer contributions, we will level of governance. James also supports the get to a situation where the money going out investment committee in deciding the is always more than the money coming in.’ overall investment strategy. The actuary has estimated it will take the BBC Scheme another 80 years to get to a Leslie Huss-Smickler point where the very last beneficiary has The second speaker of the day was Leslie died and all of the money in the Scheme Huss-Smickler, the pensioner nominated has been extinguished. PROSPERO DECEMBER 2016 03 The Baroness First titles to be opened up to of Beckenham competitive tender announced The BBC has committed to opening up strengthening science specialisms across to more competition as a part of the the sector as a whole. With programmes like Play School, Jackanory Compete and Compare strategy. And part Ultimately, over the course of the new of that means it must move 100% of charter, all BBC content will need to and Play Away, Floella Benjamin has been content to competition. become contestable. This includes removing guarantees that entertaining and enthralling children for the last were previously in place for programmes Why is the BBC in genres made by BBC Studios. launching contestability? 40 years, but there’s a lot more to her than that. In September, the BBC announced the It began with Tony Hall’s announcement of first of those titles that will be opened up the BBC’s ‘Compete or Compare’ strategy. inger, actress, author, university Floella to competitive tender as part of the move This was followed by an agreement chancellor and now a member of the When I was a little girl in Trinidad, going to to 100% competition. with PACT to introduce more competition House of Lords, Baroness Benjamin of church was a very important part of our The first returning series that will be into our commissioning, which also paved Beckenham has come a long way from wellbeing. All faiths are based on being good. opened up to competitive tendering are: the way for the creation of BBC Studios. arrivingS in Britain as a child from Trinidad. That’s why you must teach children that A Question of Sport, Songs of Praise and Holby City. This was, in turn, reinforced by the Tommy Sandhu went to meet her. nothing can destroy you as long as you have Additionally, Horizon will also be Government’s White Paper, which asked that strong inner belief.