Here’s a real shocker

It turns out that senior managers have a different pension scheme to the rest of us. And guess what? They DO get annual increases of RPI inflation added to their pensionable salary and that has not changed as a result of the announced changes to the pension scheme. At the moment the BBC is trying to change this to 1% maximum, the same as the rest of us, but apparently legal advice suggests this is against the rules. Lucy Adams (director of People) wrote this to me:

“We want to ensure that the 1% DOES apply to the application of the cap for higher earners and are trying to understand how this can be implemented as our initial legal advice suggests that this may contradict the pension scheme rules. ”

So here we have a situation where the senior managers who are selling us the story that the BBC cannot afford RPI indexing of pensionable salary for its staff are themselves guaranteed RPI indexing in their own pension scheme. Unbelievable! Sure, the BBC wants to change this. It’s a colossal embarrassment, which is why I’m sure it hasn’t come out before now. But there is another conclusion to draw. If the RPI link was considered so important to senior staff that it got written into their pension rules, why not ensure it is preserved for all of us? That is surely the absolute minimum that the BBC has to concede, now it is clear that it was important enough to be written into the rules of senior managers’ pension scheme.


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