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 You are in:  Front Page > About Us > Annual Report
BBC World Service Annual Review 2001 | 2002
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Notes to the financial statements
3 Employees and remuneration
3d Pensions
BBC Pension Scheme
Many BBC World Service employees are members of the BBC Pension Scheme, which provides salary related pension benefits on a defined benefit basis from assets held in separate, trustee-administered, funds.
BBC World Service, following the provisions within FRS 17: Retirement Benefits, accounts for the scheme as if it were a defined contribution scheme. This is because it is not possible to identify the share of the underlying assets and liabilities of the scheme relating to BBC World Service on a reliable and consistent basis. The expenditure charge for this scheme therefore represents the contributions payable by BBC World Service, amounting to £1.3 million in the year (2001 restated: £1.3 million). These contributions benefit from the surplus in the scheme and are lower than the regular cost.
The scheme is subject to independent valuation by a professionally qualified actuary at least every three years, on the basis of which the actuary certifies the rate of employer's contributions. These, together with the specified contributions payable by employees and proceeds from the scheme's assets, are expected to be sufficient to fund the benefits payable under the scheme. The most recent full actuarial valuation of the scheme was prepared as at 1 April 1999 by Watson Wyatt, consulting actuaries, using the projected unit method. At 1 April 1999, the market value of the assets of the scheme was £6,294 million, sufficient to cover 114% of the benefits due to members. An interim valuation has been produced by Watson Wyatt as at 31 March in each subsequent year.
The updated interim valuation as at 31 March 2002 shows that the scheme continues to remain in surplus. It has been agreed with the trustees that contribution rates will remain unchanged for the next year.
Additional disclosure about the scheme is provided in the BBC Annual Report and Accounts which can be obtained from BBC Information Services, 201 Wood Lane, London W12 7TS.
Other schemes
BBC World Service made payments of £0.8 million (2001 £0.6 million) into the Group Personal Pension Scheme and other schemes.
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