Thompson Set To Scrap Pension Top-Ups

BBC Director General, Mark Thompson, has set out plans today to scrap top executives pension top-up payments, totalling over £1m per year, in time for the next financial year.
The move will see his £838,000 remuneration package cut by 20%.
Reflecting on the pension cash payment top-up scheme he said: "We will review them on the principle that pension contributions should be as consistent and fair as can be irrespective of seniority," he continued: "From an economic point of view we don't have much room to manoeuvre."
The payments, known as "Furbs", were introduced for top executives who joined after 1989 when a cap on pensionable earnings was introduced at £123,000. The aim of the scheme was to top up the pensions of senior executives with the amount they would have got if the cap was not introduced.
Thompson's Furb payment is the largest at £163,000 per year.
Along with other senior executives, Thompson has already agreed to forgo a month's salary this year and in 2011.
He is currently attempting to plug a £2bn deficit in the corporation's final salary pension scheme.
Staff have appealed to the Director General to reconsider a proposed 1% annual growth cap on pensionable salaries. Thompson has already agreed to look into pension issues faced by foreign correspondents "immediately."
(BMcN/KMcA)