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BBC looks to future with new pension arrangement

The BBC is a tackling its £2 billion pension deficit with a new proposal to employees which would see their pensionable income based upon an average of their earnings over a career rather than their final salary figure. If pension fund trustees and pension fund members agree to the change in pension base calculation the BBC will also eliminate the 1% annual cap on the growth of pensionable salaries. This comes at a time when negotiations between pension fund trustees, the BBC and pension fund members have come to something of a stalemate.

It is also expected that employees would need to work until age 65 to gain a full pension as opposed to the 60-year-old limit at the moment. Whatever the final outcome of these tense negotiations, there is no doubt that the BBC need to address the issue of the £2 billion pension fund deficit. The ability to reset the basis for future pension fund payments in the future will be vital not only to the BBC but an array of other companies across the UK. Pension fund arrangements will become more and more vital to everyday life both for pension plan members and sponsoring companies.

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