Victory for unions in BBC pension vote

Two seats on the board of the BBC pension scheme have been won by union-supported candidates.
Dan Cooke and Jenny Kimber, both members of Bectu, were elected by members of the scheme to fill two trustee vacancies among the three seats held by staff. The third seat, which was not due for election, is held by NUJ member Ian Pollock
Both Bectu and the NUJ urged their members to support Cooke and Kimber in the ballot, and they now assume office for six and two years respectively.
This year's ballot for vacant pension trustee seats came at a critical time for the unions. Although the BBC pension fund was healthy at its last valuation, with 9% more invested than it needed to meet its obligations, the ongoing contribution from the BBC into the fund has been at an historical low for several years.
Like many other employers the BBC took advantage of a booming stock market in the 1990s to cut both its payments and the payments made by employees, into the fund. Until last year, both the BBC and its staff contributed 4.5% of the payroll each.
However, the low rate of contribution has gradually eroded the surplus value that fund managers identified a decade ago, and actuaries last year warned that the £5bn scheme would need a combined input of more than 20% of payroll when the surplus runs out.
BBC unions are determined that if next year's major valuation of the fund reveals a need for rapid increases in contributions, the BBC should shoulder its share of the burden, especially since its contribution prior up until the mid-90s was 15%.
Management at the BBC have emphasised that the corporation is committed to continuing with a final salary pension scheme, and unlike many other employers, allowing newly recruited staff to join with full benefits.
Contributions into the pension fund are currently being raised by a series of annual 0.5% increases, and by April 2005 will reach 6.0% for the BBC, and 5.5% for staff.
(GB)