BBC confirmed there will be no reduction to any pension benefits already built up and nothing will change before the second half of 2024.
The BBC has launched an appeal against a High Court ruling that quashed the broadcaster’s attempt to limit the costs of its future defined benefit (DB) obligations.
A statement by the BBC confirmed its application for permission to appeal was granted on Friday.
This was immediately communicated to BBC staff.
The broadcaster believes it now has good grounds to have the decision considered further by a panel of three judges at the Court of Appeal.
The statement read: “Like many organisations, the BBC is reviewing it’s pension options with the aim of providing a more consistent, industry-leading pension offering for all employees and – as a publicly funded organisation – better manage our costs in the best interests of our staff and licence fee payers.
“Following the judgement from the court in May, we sought professional advice and our view is that we have good grounds to have the decision considered further at the Court of Appeal. Our application for permission to appeal was granted on Friday.”
The BBC said there will be no reduction to any pension benefits already built up, and nothing will change before the second half of 2024 at the earliest.
In May 2022, the BBC approached the Court to clarify what options were available for the future of its DB pension scheme.
BBC DC scheme members
In evidence given to the High Court, Leigh Tavaziva, chief operating officer of the BBC, explained that the broadcaster was paying a contribution rate of 42.3 per cent of the pensionable salaries of active members, which is almost three times what the contribution rate was in 2010.
By contrast, members of the BBC’s defined contribution (DC) scheme who joined after 2010 are receiving an employer contribution of seven to eight percent.
DB employees accounted for less than 40 per cent of the workforce, but accounted for over 80 per cent of the pensions spending, according to the judgement.
There are around 6,800 active members in the BBC’s DB pension scheme.
In FY22, the BBC was paying around £182m on average – towards the cost of future pension benefits. It contributed £35m for staff in the DC schemes, with LifePlan and NEST, and £147m for workers in the DB scheme through the BBC Pension Scheme.
