Trustees welcome move to protect payments for members of British Steel Pension Scheme

By Scunthorpe Telegraph | Posted: 8 Mar 2017

The trustees of the British Steel Pension Scheme (BSPS) which has 20,000 members in the Scunthorpe area have welcomed the deal between Tata Steel and the trade unions to close the defined benefit fund to future new members.

As reported, Tata Steel employees in the UK overwhelming voted to back the company's plans to scrap the existing 50-year-old British Steel Pension Fund and replace it with a defined contribution scheme.

The measures designed to protect the long-term future of steel-making in Port Talbot have been welcomed by Roy Rickhuss, the leader of Scunthorpe's main steel union Community.

Allan Johnston, the chairman of the trustee board, said: "The Trustee of the British Steel Pension Scheme welcomes the conclusion of the consultation between Tata Steel and its employees over future pension provision.

"The closure of the scheme is an important step in securing its future outside of the Pension Protection Fund ('PPF') and making available the choice of better pension benefits for the vast majority of members than would be available to them following freefall entry into the PPF.

"We continue to have constructive discussions with Tata Steel, HM Government, the Pensions Regulator, the Pension Protection Fund and other stakeholders about how to secure a better outcome for the BSPS membership. These discussions are ongoing and the membership will be kept informed of developments."

The Department for Work and Pensions has been in consultation since last July over whether to place the scheme which is worth £15 billion into the hands of the Pension Protection Fund

If that was the case, thousands of stake-holders in the Scunthorpe area stand to lose a chunk of their investments.



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