Career Average Benefits pensions in payment to increase

Under the Rules of the BBC Pension Scheme, every year the Trustee and the BBC must jointly consider whether to award a discretionary increase to Scheme pensions in payment, in addition to the guaranteed annual increase due and paid each April. Any discretionary increase is a one-off and can only be made with the agreement of both the Trustee and the BBC.

This year, following a request from the Trustee, and after careful consideration, the Trustee and the BBC have agreed to award a discretionary one-off increase of 3% to Career Average Benefits 2006 and Career Average Benefits 2011 pensions in payment that started on or before 1 April 2024.

This increase is in addition to the 2.5% guaranteed increase applied in April 2025 and will take effect from 16 November 2025.

In putting forward its proposal for a discretionary increase, the Trustee considered a range of factors, including the following:

1. The effect of relatively high inflation on Scheme members' benefits in recent years;

2. The different caps on the guaranteed increases to pensions in payment under the different sections of the Scheme. The caps for the Career Average Benefits sections are lower than for the Old Benefits and New Benefits sections. In recent years, Career Average Benefits pensions in payment have therefore increased less than Old Benefits and New Benefits pensions in payment;

3. The improved funding position of the Scheme;

4. Fairness between members, including those with pensions in payment in other sections (with different caps on guaranteed pension increases) or those with benefits that are not yet in payment; and

5. The cost of providing an additional increase.

The BBC reviewed and considered the proposal and agreed to the one-off 3% discretionary increase.

This decision does not set a precedent. Future decisions on whether to grant discretionary increases will be considered based on the circumstances at the time.

If you are a pensioner eligible for the increase you will be contacted in early November with details of what it means for you. If you are registered for myPension Online look out for an email from BBC Pension and Benefits Centre in the first week of November. If not, a letter will be posted to you.