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New British Steel scheme gets green light

Manufacturing-Plant-Factory-Industrial-700x450.jpgThe new British Steel pension scheme has met the minimum size and initial funding tests to be created, according to trustee chairman Allan Johnston.

Up to 83,000 members will go into the scheme which is part of the restructuring deal struck between the trustees and sponsor Tata Steel UK in August 2017.

Assessments undertaken by the scheme actuary and agreed with Tata Steel UK indicate that the initial funding level test was comfortably met at the 31 January 2018 deadline.

The Pension Protection Fund and the Pensions Regulator have been advised of this.

Johnston says: “The minimum size and initial funding tests have now been met paving the way for the new British Steel pension scheme to go ahead on 28 March as planned.

“This is very good news for the 83,000 members who wanted to receive their benefits from the new scheme and chose to switch to it.

“The trustee expects to write to members in early April to welcome them to their new pension scheme.”

In January Money Marketing reported over 25,000 members of the scheme would go into the PPF at the end of March as they had not returned their options form.

The ‘Time to Choose’ consultation asked 122,000 members what they wanted to do with their pensions.

The advice process on transfers out of the scheme has received much attention from the media and politicians over the past six months.

Advisers have said trustees should have done more to signpost steelworkers to good IFAs and the Work and Pensions Select Committee has called for contingent charging to be banned.

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Comments

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  1. This is hardly a surprise given the nefarious deal earlier struck. I’m no defender of dodgy advisers working with even dodgier, let’s face it crooks peddling whatever is the latest Arthur Daly scam. And I’d be happy to see contingent charging outlined in full.

    I would be more impressed with The DoW&P had involved itself in the Tata scandal, or if it did showed how.

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