Quasi -state sponsored pension scheme with pension-savvy staff representatives seeks solution to defined benefit funding conundrum” – sound familiar?
For BBC – read Royal Mail
For Licence Fee read postal monopoly
For Bechtu – read CWU
For solution – read CDC.
News that the High Court ruled out changes to the BBC’s promise to pay pensions against past and future earnings , should come as no surprise.
I’ll let Jo Cumbo tell the story
The BBC asked the High Court to clarify whether the scheme rules allowed it to make changes to future accrual. Unions believed this was a first step to cutting benefits for existing savers or closing the scheme.
— Josephine Cumbo (@JosephineCumbo) July 28, 2023
It comes as no surprise as forcing through changes requires consent not legal opinion.
The BBC said it was reviewing its pension options in the interests of both its staff and licence fee payers.
“We are considering the judgment very carefully
…including whether we have reasonable grounds to appeal the decision, which is not unusual in cases of this nature.”— Josephine Cumbo (@JosephineCumbo) July 28, 2023
Add to the equation the protracted struggle between UUS/UUK and UCU over the future accrual of their scheme and you get a consistent picture of detriment to scheme members transferring to detriment to customers. Industrial action should not be in the DB playbook – but it now most definitely is. The workplace pension becomes the workless pension unless people talk sense to each other.
There is an obvious solution to the problems at the BBC. The answer is for a weakening sponsor with a long-term revenue covenant to link the pension contribution to payroll switching from insuring promises to managing pensions using the best endeavours of the BBC pension team.
I hope this is part of what the BBC is considering
The BBC said it was reviewing its pension options in the interests of both its staff and licence fee payers.
“We are considering the judgment very carefully
…including whether we have reasonable grounds to appeal the decision, which is not unusual in cases of this nature.”— Josephine Cumbo (@JosephineCumbo) July 28, 2023
I am not sure that the Royal Mail CDC scheme is over the line yet. Arguments continue over tax which look like tipping the start date into 2024.
Bectu should be keeping close to CWU, BBC should be talking with Royal Mail. We don’t need any more pension strikes, we don’t need to feed the pension lawyers. We need constructive negotiations using the new legislation and regulation to promote confidence in pensions , whether they come with a guarantee or “best endeavours”.
