Pondering pensions

As BBC staff contemplate their latest pension offer, the Mail offers a continuing irritation this morning.  The paper claims that while the nine members of Mark Thompson's Executive Board have agreed to give up additional payments into their pensions, 21 other executives in receipt of similar benefits have yet to be persuaded it's for the best.

These payments are part of a Funded Unapproved Retirement Benefit scheme, used much more in the commercial world than the public or quasi-public sector, as a way of getting more for high flyers earning more than the cap on pensionable earnings first introduced in 1989.  Whilst maybe not as tax efficient as normal pensions, you can get favourable tax rates on growth within the fund.  They allow unlimited contributions, which, if paid by the employer, are treated as salary payments in the employee's hands and taxed accordingly. However, you can take the full fund at retirement tax-free, whereas with a normal pension scheme you cannot.   It's never been clear how the levels of these extra payments are set within the BBC.

Mark has created the impression that all would fall into line, using the phrase "executives" rather than "Executive" when describing those who would give up the supplement.   However he has been cautious enough to use the word "supplement" and talk about a drop in "total remuneration", rather than a pay cut.  The Executive's take-home pay is not affected.   Staff who opt for the new Career Average Benefit scheme will have to contribute 2% more in salary, and pay higher National Insurance rates.  Will Mark Thompson be one of those ?