BBC to finance pension scheme deficit with licence fee revenues

The Broadcaster will inject extra licence-fee money to reduce the scheme's £1.1bn deficit, over an 1

The BBC announced it has set up a deficit reduction mechanism for its pension scheme. It now aims to reduce the system's £1.1bn deficit by pumping extra licence-fee money into it for the next eleven years.

The broadcaster is set to inject £110 million this year, followed by debits of £60 million in both 2012 and 2013. The remaining eight years will see payments between £75 million and £100 million.

BBC director general, Mark Thompson sent an email to the entire staff stating this reform had saved "half a billion pounds", which could now be used on "programmes and services for the public".

Last year, staff went on strike to protest against the management's will to cut the pensions scheme. An agreement was reached on a system based on the employee's average career salary.